CS/CS/HB 695 - Ad Valorem Taxation Summary

• Revises value adjustment board (VAB) composition effective July 1, 2016, changing from elected county/school board members and citizen appointees to three citizen members appointed by the Governor, with requirements for homestead owner, commercial property owner, and licensed real estate appraiser representation.

• Establishes June 1 deadline for VABs to certify assessment rolls (extendable to December 1 if petition filings increase over 10%), and requires property appraisers to provide property record cards to petitioners upon receipt of petitions regardless of evidence exchange initiation.

• Changes interest rates on unpaid and overpaid ad valorem taxes from fixed 12 percent to variable bank prime loan rate effective July 1, 2016, defined as the average predominant prime rate quoted by commercial banks to large businesses as determined by the Federal Reserve.

• Authorizes property appraisers to contract for homestead exemption audits with specified contractor conduct restrictions and allows persons claiming homestead exemptions to sue contractors for violations, with contractors compensated from penalties collected.

• Amends homestead exemption lien procedures to file liens for taxes, penalties, and interest remaining unpaid 30 days after notice, and makes such liens superior to all other liens; permits property appraisers to retain interest collected on back taxes.