Relating to the exclusion from the market value of real property for ad valorem tax purposes of the value of any improvement, or any feature incorporated in an improvement, made to the property if the primary purpose of the improvement or feature is compliance with the requirements of standards that address accessible design of buildings or other facilities.
Impact
If passed, HB1547 would modify how local tax appraisers assess improvements made to comply with accessibility standards, thereby potentially lowering the tax burden on property owners who make these necessary modifications. This could particularly benefit businesses and institutions that are required to upgrade their facilities to remain compliant with federal law. It will apply to improvements initiated on or after January 1, 2025, with the provisions taking effect on January 1, 2026, conditional upon voter approval of a related constitutional amendment.
Summary
House Bill 1547 proposes a change to the Texas Tax Code that would exclude from the market value of real property the value of improvements made primarily to comply with accessibility standards. Specifically, it focuses on improvements relevant to the 2010 Americans with Disabilities Act Standards for Accessible Design. This bill is intended to encourage property owners to make their facilities more accessible without the financial penalty of increased property taxes due to valuation increases stemming from those improvements. Thus, this could significantly impact how real estate properties are assessed for tax purposes.
Contention
One notable point of contention regarding HB1547 is the possible implications for local government revenue. Opponents may argue that by reducing the taxable value of properties through this exclusion, there could be a negative impact on local tax revenues, which are critical for funding public services. Supporters, however, believe that the long-term benefits of creating more accessible facilities will outweigh short-term revenue losses. The debate may also involve other stakeholders, including disability rights groups advocating for improved accessibility standards and related funding mechanisms.
Enabling for
Proposing a constitutional amendment to authorize the legislature to exclude from the market value of real property for ad valorem tax purposes the value of any improvement, or any feature incorporated in an improvement, made to the property if the primary purpose of the improvement or feature is compliance with the requirements of standards that address accessible design of buildings or other facilities.
Proposing a constitutional amendment to authorize the legislature to exclude from the market value of real property for ad valorem tax purposes the value of any improvement, or any feature incorporated in an improvement, made to the property if the primary purpose of the improvement or feature is compliance with the requirements of standards that address accessible design of buildings or other facilities.
Relating to the exclusion from the market value of real property for ad valorem tax purposes of the value of any incomplete structure located on the property.
Relating to an exemption from ad valorem taxation of the amount of the appraised value of residential real property that arises from the installation in the property of certain energy efficiency-related improvements.
Proposing a constitutional amendment authorizing the legislature to provide that the appraised value of a residence homestead for ad valorem tax purposes for the first tax year that the owner of the property qualifies the property for a residence homestead exemption is the market value of the property and that, if the owner purchased the property, the purchase price of the property is considered to be the market value of the property for that tax year and to limit increases in the appraised value of the homestead for subsequent tax years based on the market value of all new improvements to the property.
Relating to an exemption from ad valorem taxation of the amount of the appraised value of certain residential real property that arises from the installation in the property of certain energy efficiency-related improvements.
Concerning the authority of local taxing entities to impose property taxes on the assessed value of land and the assessed value of improvements thereon at different mill levy rates.