If you've been in and around the office, it becomes quickly apparent that the legislative session is in full swing. The Governmental Affairs and Legal teams have been diligently working on the association's advocacy efforts and the lobby team has been working night and day for some time now. We appreciate all of their hard work as they ensure that the association's priorities are well represented.
Here are a few key items to be aware of, as presented in the latest edition of the Legislative Liaison:
REALTORS® testify on proposed foreign buyers legislation Christy Gessler, 2023 Texas REALTORS® Secretary/Treasurer, testified before the Senate State Affairs Committee on Thursday as members considered SB 147 and SB 711. Both those bills would limit the ability of foreign governments, people and entities from certain foreign countries to purchase real estate in Texas. Gessler testified that REALTORS® continue to oppose both bills even after reviewing their committee substitutes. “Our members respect and support the need to ensure that our lands are protected from hostile actors; however, they have raised significant concerns with the legislation as originally filed, particularly as it related to the validity of title and the risk of running afoul of state and federal fair housing laws,” Gessler said of SB 147. “Even with the substituted language, we still have concerns about the impacts to nonpermanent residents and independent business entities, and we would like to continue to work with the author on those concerns.” Gessler’s two-minute testimony was part of a 5.5-hour session in which lawmakers heard testimony from over 100 Texans about their perspectives on this critical issue. Both bills were left pending in committee, and the association will continue to work with bill authors to address numerous concerns.
Chair Phipps speaks out against appraisal caps House Bill 2, the House's priority tax reform bill, was filed last week. The bill includes several provisions that would be beneficial to property owners throughout Texas. But it also includes a provision that would reduce the amount a property's taxable value can rise year-over-year from the current 10% to 5%. The legislation would extend that 5% cap not just to homesteaded properties, but to all taxable properties. While it sounds like a great idea at first, Texas REALTORS® oppose further restricting the growth of appraisal values because it creates inequities in the real estate market and property tax system by shifting the burden of property tax bills to new property owners while keeping taxes lower for property owners who have been able to hold their investments for a longer time. Click here to read more about how this works Last week in The Texas Tribune, Urban Affairs reporter Joshua Fechter quoted Texas REALTORS® Chair Marcus Phipps on the detrimental effects of lowering and expanding the state appraisal caps on real property. “Tax experts and real estate industry analysts warn that lowering the appraisal cap would have severe ripple effects, like creating vast inequities in who pays property taxes and upending the state’s housing market. Those were the consequences in California in the decades since that state’s voters opted to impose caps on how much their homes could be taxed in the late 1970s,” Fechter wrote in The Texas Tribune. According to a recent report from the Texas Comptroller’s office, tax benefits from the state’s current 10% appraisal cap flow disproportionately to wealthier households. And although appraisal caps are applied to all properties, as Phipps told Fechter, those who do buy homes in the future will wind up with higher tax bills than neighbors who have owned their home for a longer period. “You shift the burden from the long-term owner to the new owner,” Phipps said. “And who are the new owners of real estate? They’re typically going to be your younger population.” Lt. Gov. Dan Patrick has publicly expressed his disapproval of lowering appraisal caps, and the Senate has not included any such measure in its priority property tax bills, setting up the potential for a hot debate between the chambers.
REALTOR® priority bills filed
On Friday, several bills were filed that would accomplish key real estate priorities for this legislative session. REALTORS® are proactively working on these issues (and more!) this session.
SB 1374 (Parker): Would ensure a purchase contract can’t be canceled for failure to notify a buyer that the property lies within a public improvement district (PID) if the PID is not properly filed with the county clerk.
SB 1577 (Menéndez | Schwertner)/HB 3878 (K. King): Would update the structure of TREC and the Texas Real Estate Research Center at Texas A&M University and perpetuate the Center’s work.
SB 1916 (Parker): Creates a process to include public improvement district assessments in central appraisal district property search databases.
SB 1668 (Hughes)/HB 3503 (Turner): Would extend new transparency and accountability provisions to condo associations.
HB 3625 (Walle): Would provide exceptions to requirements to notify tenants if their rental unit is located in a floodplain in leaseback situations and for short-term leases.
HB 4108 (Guillen): Addresses some challenges in the state's model subdivision laws to help property owners who may otherwise be unable to legally sell their land.
Commenti