HB 2257 is a new bill to be enacted that requires the mandatory sales price disclosures of certain real estate transactions. Texas has been a privacy state where the price paid for a piece of real estate is not of public record.
HB 2257 will require the report of the sales price to the following real estate transactions:
- Commercial Property ( property used for a business purpose)
- Multi Family Property( property with two or more residential units under one single ownership)
- vacant land
There is a civil penalty for anyone who violates this act. This only applies to instruments recorded after September 1, 2009.
What does this mean for Austin Investment Property Owners?
It means that the taxes will definitely be going up. Commercial properties are difficult to appraise on the mass appraisal method. This new law will make it easier for the tax appraisal district to make assumptions regarding similar properties. Even if you purchased your property Before September 1, 2009 you can expect your appraised value to go up. There is no 10% cap on the value of a property without a homestead exemption.
If you don’t know a good property tax consultant, it’s high time we all establish a relationship with one. We are going to need them in the very near future.
