Texas Property Tax Legislative Update

Texas Property Tax Legislative Update

The Regular Session of the 87th Texas Legislature adopted a number of changes that were favorable to Taxpayers.

According to HB1090, effective 9/1/21, the appraisal districts have less time to pick up erroneously omitted real property. Previously, the districts had five years to discover and correct the roll (which includes the back taxes, penalties, and interest); this period has now been reduced to three years. The personal property time period remains unchanged, at two years.

Also effective 9/1/21, taxpayers will now have two years to correct their personal property rendition filings. These returns are filed in Texas by April 15 (or by May 15 with extension), and given the chaos of the busy season…mistakes are frequent. The courts have historically been mixed regarding the taxpayer’s ability to “correct” those filings – so the legislature has resolved any such confusion.

SB1421 allows the ARB to change the appraisal/assessment record and valuation for the current tax year and the two preceding tax years, to correct an inaccuracy that was the result of error or omission in the rendition filing. Note that the return must have been filed timely and without penalty originally, and must not have been subject to an ARB appeal or settlement in those prior years.

SB1449, Effective 1/1/22, the exemption for income-producing personal property will be increased from the current $500 to a more meaningful $2,500 (reducing the compliance burden for small businesses).

Have a question? Contact Patrick Price, Ducharme, McMillen & Associates

Patrick Price

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