Overall Vote Recommendation

Yes

Principle Criteria

Free Enterprise

Property Rights

Personal Responsibility

Limited Government

Individual Liberty

Digest

HB 1533 seeks to reform the property appraisal system for ad valorem tax purposes in Texas, aiming to enhance transparency, procedural fairness, and the accuracy of appraisal records and protests. The bill introduces several changes to the Tax Code that focus on improving taxpayer rights, reducing bureaucratic burdens, and promoting more consistent appraisal practices across the state.

One of the significant changes introduced by HB 1533 is the requirement that notices related to omitted property be sent via certified mail, thereby ensuring that property owners receive proper notification. Additionally, the bill revises the requirements for submitting an electronic designation of agent form by eliminating the need to provide the Internet Protocol (IP) address, thereby reducing unnecessary data collection.

To further ensure that taxpayers are fairly represented, HB 1533 mandates that at least one trainer in property tax courses be a taxpayer representative, provided they meet specific criteria, including residency and experience in property tax law. This provision includes flexibility to allow trainers who do not meet all criteria if no eligible individuals are available, balancing the need for expertise with practical considerations.

In an effort to increase public access to property appraisal information, the bill requires that appraisal districts in counties with a population of 120,000 or more maintain a website. These websites must display updated appraisal records, which must be refreshed at least weekly, thereby providing property owners with timely and accurate information. Additionally, HB 1533 makes it easier for property owners to participate in appraisal hearings by allowing them to choose telephone or videoconference participation and reducing the notification deadline from 10 days to 5 days if no agent has been designated.

The bill also addresses procedural fairness in appraisal hearings by increasing the notice period for good cause hearings from 5 to 15 days, giving affected parties more time to prepare. Furthermore, it grants tenants who are contractually responsible for paying property taxes the right to appeal through binding arbitration if the appraised value of the property is $5 million or less. This provision ensures that financially responsible leaseholders can challenge tax appraisals. Additionally, HB 1533 limits court-ordered discovery in tax appeals, allowing it only when explicitly requested, and restricts courts from imposing accelerated deadlines for expert witness discovery, thereby protecting taxpayers from overly burdensome legal procedures.

The original version of HB 1533 and its committee substitute HB 1533 both aim to reform the system for appraising property for ad valorem tax purposes in Texas. However, the Committee Substitute introduces additional provisions, refines existing ones, and incorporates feedback likely received during the legislative process.

One key difference between the two versions is the expanded role of taxpayer representatives as trainers. The original bill mandates that at least one trainer must be a taxpayer representative who meets strict criteria related to residency, legal licensure, and experience. The Committee Substitute, however, introduces flexibility by allowing the comptroller to contract with a trainer who does not meet these criteria if no eligible individual applies. This adjustment likely addresses concerns about a shortage of qualified trainers.

Another significant change is in the scope of appraisal district website requirements. In the original bill, the appraisal district’s website must include appraisal records and be updated weekly. The Committee Substitute retains this requirement but clarifies that the website should also include completed appraisal records specifically, enhancing transparency and clarity.

Additionally, the Committee Substitute introduces provisions regarding the appeal rights of tenants who lease property and are obligated to pay property taxes. These provisions were not present in the original bill and allow tenants to appeal appraisal review board decisions through binding arbitration if the property value is $5 million or less. This inclusion addresses scenarios where tenants, rather than owners, bear the tax burden, reflecting a more nuanced approach to property tax disputes.

Moreover, the Committee Substitute refines the remote hearing provisions by specifying that the notification period for property owners without designated agents is reduced from 10 days to 5 days. The original bill only shortened the period generally without this specific distinction. This change likely aims to reduce unnecessary delays while still allowing adequate preparation time for property owners.

In summary, the Committee Substitute builds on the original bill by increasing flexibility in training requirements, enhancing clarity in website posting, expanding appeal rights for leasing tenants, and specifying notification deadlines for remote hearings. These changes reflect a more practical and inclusive approach to property tax appraisal reforms while maintaining the core objectives of transparency, fairness, and efficiency.

Author

Angie Chen Button

Candy Noble

Chris Turner

Keith Bell

Contact the Author

Rep. Angie Chen Button

Capitol Phone:

(512) 463-0486

Capitol Office:

CAP GW.7

E-Mail:

[email protected]

Visit Official Website

Fiscal Notes

According to the Legislative Budget Board (LBB) the fiscal implications of HB 1533, indicate a negative financial impact on the state’s General Revenue-Related Funds. Over the biennium ending August 31, 2027, the estimated cost is projected to be $770,000. The anticipated annual negative impact is $385,000 from fiscal years 2026 through 2030, totaling $1,925,000 over five years.

This cost is primarily attributed to administrative expenses necessary to implement the bill’s provisions. The Comptroller’s office projects the need to hire four additional full-time employees (FTEs) to manage the increased workload related to binding arbitration requests and appeals, as the bill expands eligibility for arbitration. The cost includes salaries, benefits, travel expenses, and professional services. Additionally, there is an estimated $50,000 annual contract cost to secure a qualified taxpayer representative to meet the new training requirements stipulated in the bill.

Vote Recommendation Notes

The overall vote recommendation for HB 1533 is "Yes". The bill aims to improve the property tax appraisal process in Texas by enhancing taxpayer rights, increasing transparency, and reducing administrative burdens, aligning well with the core principles of individual liberty, personal responsibility, and limited government.

One of the key strengths of HB 1533 is its focus on fairness and accessibility for taxpayers. The bill enhances individual liberty by granting more rights to property owners and leaseholders who are financially responsible for property taxes, allowing them to appeal ARB decisions through binding arbitration. Additionally, it reduces unnecessary administrative burdens by eliminating the requirement for IP addresses in electronic agent submissions, which protects taxpayer privacy. The bill also ensures that taxpayers can participate in ARB hearings remotely, thereby accommodating those who may face difficulties attending in person.

The bill’s provisions requiring appraisal districts in larger counties to maintain updated websites with current appraisal records promote transparency and accountability. This aligns with the principle of limited government by making appraisal data more accessible without increasing bureaucracy. Additionally, by setting clear guidelines for who can train ARB members and allowing flexibility when qualified trainers are scarce, the bill balances the need for expertise with practical implementation.

From a fiscal perspective, while the bill does have a projected cost of $385,000 annually due to additional administrative requirements, these expenses are justified by the bill’s potential to reduce litigation costs and improve the accuracy and fairness of property tax assessments. The Legislative Budget Board noted that the costs mainly stem from hiring staff to handle increased arbitration requests and ensuring compliance with the new training standards. However, the long-term benefits of a more transparent and taxpayer-friendly appraisal process outweigh these costs.

Overall, HB 1533 supports taxpayer engagement and accountability while minimizing government overreach. Its balanced approach to modernizing property appraisal practices makes it a sound policy decision, meriting a positive vote recommendation. Texas Policy Research recommends that lawmakers vote YES on HB 1533.

Individual Liberty: HB 1533 significantly enhances individual liberty by empowering taxpayers in the property appraisal process. The bill allows property owners and financially responsible leaseholders to participate remotely in appraisal hearings via telephone or videoconference. This accommodation makes the process more accessible, particularly for those with mobility issues or scheduling conflicts. Additionally, the bill ensures that property owners receive proper notice when a property has been omitted from the appraisal roll, safeguarding their right to due process. By removing the requirement to include the IP address when submitting an electronic agent designation form, the bill also protects personal data privacy.
Personal Responsibility: The bill fosters personal responsibility by giving taxpayers more control over their property tax appeals. It clarifies the obligations of leaseholders who are contractually responsible for property taxes, allowing them to appeal ARB orders through binding arbitration if the property's value does not exceed $5 million. This provision encourages leaseholders to actively participate in protecting their financial interests. Furthermore, the bill stipulates that appraisal districts in counties with larger populations must maintain a public website with accurate, up-to-date records, promoting responsible information dissemination and enabling property owners to stay informed.
Free Enterprise: HB 1533 indirectly supports free enterprise by creating a more predictable and transparent property tax environment. By mandating that appraisal districts maintain updated online records, businesses can more easily track property valuations and plan for tax obligations. The bill also addresses potential conflicts of interest by requiring that at least one ARB training instructor be a taxpayer representative, ensuring that the training process is not solely influenced by government or appraisal district perspectives. These measures foster a fairer property tax system that benefits commercial property owners and encourages investment.
Private Property Rights: The bill strengthens private property rights by increasing transparency and fairness in the appraisal process. The requirement for certified mail notifications regarding omitted properties ensures that property owners are adequately informed, preventing unanticipated tax liabilities. Additionally, the bill grants leaseholders the right to contest appraisals when they are financially responsible, recognizing their legitimate stake in the property’s assessed value. This approach acknowledges the complex realities of property leasing while safeguarding the property rights of those who bear the tax burden.
Limited Government: HB 1533 aligns with the principle of limited government by reducing unnecessary regulatory requirements and safeguarding individual privacy. By eliminating the IP address requirement for electronic submissions, the bill limits government data collection. It also restricts judicial overreach by prohibiting courts from imposing discovery deadlines that exceed standard procedural rules, thereby reducing the legal burden on taxpayers during appeals. Furthermore, the bill allows for more flexible trainer selection when qualified candidates are scarce, minimizing potential disruptions in the ARB training process while avoiding excessive regulation.

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