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HB 4399

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 Dade Phelan

Bill allows Texas appraisal review boards to lower home assessed values when properties sell below appraised amounts, reducing property taxes for some homeowners but potentially decreasing school district revenue.

Referred to s/c on Property Tax Appraisals by Speaker
#propertyinterests--homestead(i0616) #taxation--property-appealoftaxdecisions(i0796) #taxation--property-appraisals&appraisaldistricts(i0792)
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Bill Summary · HB 4399

Legislative bill overview

HB 4399 would authorize Texas appraisal review boards (ARBs) to adjust property values downward on the appraisal roll when a residence homestead sells for significantly less than its appraised value. This aims to align assessed values with actual market transactions and provide relief to homeowners whose properties are overvalued on the tax rolls.

Why is this important

Property tax assessments directly affect homeowner tax bills and school funding. If homes are appraised above market value, owners pay taxes on inflated assessments while the county collects higher revenue. This bill addresses a real problem in hot real estate markets where appraisals lag behind price declines, but also creates tension between revenue stability for schools and property tax equity for homeowners.

Potential points of contention

  • Revenue impact on schools: School districts depend on stable property tax revenue; allowing downward adjustments could reduce funding mid-budget cycle, particularly affecting districts with declining home values
  • Market timing concerns: Using sale prices as the sole benchmark may penalize homeowners in temporary market downturns and could encourage strategic underpricing to trigger appraisal reductions
  • Implementation complexity: Determining which sales are legitimate market transactions versus distressed sales or family transfers could create disputes and administrative burden for ARBs

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

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