Texas House Bill HB1547

Texas 2025 - 89th Regular

• Filed: 12/9/24

Caption

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.