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Bill

HB 360

Relating to the authority of an appraisal review board to direct changes in the appraisal roll and related appraisal records if a residence homestead is sold for less than the appraised value.

89th Legislature (2025) Introduced by Ryan Guillen and 2 co-sponsors

Authorizes Texas appraisal review boards to lower residential property tax assessments when homes sell below appraised values, potentially reducing homeowner tax bills but affecting local government revenues.

Reported from s/c favorably w/o amendment(s)
#propertyinterests--homestead(i0616) #taxation--property-appealoftaxdecisions(i0796) #taxation--property-appraisals&appraisaldistricts(i0792)
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Bill Summary · HB 360

Legislative bill overview

HB 360 would authorize Texas appraisal review boards (ARBs) to adjust property values on the appraisal roll when a residential homestead sells for significantly less than its appraised value. This creates a mechanism for homeowners to challenge inflated assessments using actual sale prices as evidence of fair market value.

Why is this important

Property tax assessments directly determine how much homeowners pay in taxes annually. If homes are appraised above market value, owners pay artificially high taxes. This bill could provide relief to homeowners in declining markets or overvalued neighborhoods by allowing ARBs to use recent comparable sales data to correct assessments downward.

Potential points of contention

  • Revenue impact on local governments: School districts, counties, and municipalities depend on property tax revenue; allowing systematic appraisal reductions could shrink funding for public services unless offset elsewhere
  • Market timing concerns: Homeowners might strategically challenge appraisals after market downturns, creating inconsistent valuation practices and potential disputes over which sales are representative
  • Administrative burden: ARBs would need clear guidelines to distinguish legitimate market corrections from individual anomalies, requiring additional staff resources and likely increasing hearing dockets

Compiled from official sources — confirm details with the bill’s official record.

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