Update - 1/4/10 - Laws Become Effective January 1

New Laws to Become Effective January 1
Most bills that are passed by the legislature become effective on September 1 of the year in which the legislative session occurs. However, some have later effective dates, such as January 1 of the following year. As we are celebrating the new year on January 1, 2010, we will also be adding 27 new laws to the books in Texas.

Here are some of the high points:

· House Bill 2814 – Business Vehicle Exemption Form – provides that people who use their automobile for both professional and personal use will only have to file a property tax exemption form for that vehicle once. (Previously this form would have to be filed annually in many counties.)

· House Bill 3502 – Seller Disclosure Notice – removes language that was added in the 80^th legislative session to the Seller’s Disclosure Notice that required buyers who signed the notice to also acknowledge that either: (1) the property complied with the requirements of Chapter 766, Health and Safety Code; or (2) that the buyer waived the buyer’s rights granted under that chapter. Read more about HB 3502.

· House Bill 8 – Appraisal Reform – requires the comptroller to perform an audit on appraisal district procedures, methodology, governance, and how they treat taxpayers. By conducting a methods and procedures audit every other year, the comptroller will be able to do a more thorough audit and will make the appraisal process more consistent throughout the state.

· SB 771 – Appraisal Reform – clarifies appraisal standards for the use of comparable sales and requires chief appraisers to present substantial evidence for increasing the appraised value of property whose value was reduced on appeal in the prior year. The bill also provides expedited arbitration as an additional means to appeal decisions by the appraisal review board and increases qualification requirements to be an arbitrator. Read about areas of reform included in the bill.

· HB 3612 – Property Appraisal Appeals – establishes a three-year pilot program in the state’s largest counties to allow taxpayers to appeal an appraisal review board’s determination on property valued over $1 million to the State Office of Administrative Hearings (SOAH). Currently, the only appeals option for property valued over $1 million is district court, which can be costly and time consuming. The SOAH provides a less expensive option in a more expedited setting. Note: The pilot program only applies to Bexar, Cameron, El Paso, Harris, Tarrant and Travis counties. Property taxpayers in Dallas County will not be able to take advantage of the pilot problem because the chief appraiser for the Dallas CAD did not believe any problems exist in Dallas County and, therefore, lobbied the Legislature to delete Dallas County from the pilot program.

· HB 1038 – Comparables for Property Tax Appraisal – directs county chief appraisers when determining the market value of a residence homestead to not exclude from consideration the values of other property in the neighborhood that sold at foreclosure within the previous three years or that declined in value because of a declining economy.