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HB4236

Regular Session

Relating to the creation of a study group to evaluate the school district property value study conducted by the comptroller of public accounts.

Low
Low Cost
Effective:2025-06-20
Enforcing Agencies

Comptroller of Public Accounts • School District Property Value Study Group (Newly Created) • Texas Education Agency (TEA)

HB4236
Relating to the creation of a study group to evaluate the school district property value study conducted by the comptroller of public accounts.
Low Urgency
Passed with Opposition
House Vote129 - 14
YEA
90% in favor143 voting
Senate Vote28 - 3
YEA
90% in favor31 voting
17
Total Opposition Votes
Cost Impact
Low
Effective
2025-06-20
Enforcing Agencies
Comptroller of Public AccountsSchool District Property Value S...TEA
Primary Author: Rep. Trey Martinez Fischer
89th Texas Legislature
jdkey.com
01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: June 20, 2025 (Immediate).
  • Compliance Deadline: December 1, 2026 (The Study Group must report findings; businesses must protect data prior to this date).
  • Agency Rulemaking: No formal rulemaking is mandated immediately, but the Study Group has immediate statutory authority to request data from the Comptroller and Appraisal Districts.

Immediate Action Plan

  • 1. Audit CAD Data: Immediately review all technical data submitted to your local Appraisal District to ensure it is marked confidential under Tax Code Section 22.27.
  • 2. Monitor Appointments: Track the three House and three Senate appointments to the Study Group; identify if your local representatives are seated.
  • 3. Prepare for Testimony: The Group is mandated to hold a public meeting. Prepare technical testimony defending your current valuation methodology (e.g., income vs. cost approach) in case industry practices are challenged.
  • 4. Alert Legal Counsel: Instruct outside counsel to watch for "Requests for Information" issued by the Study Group to your specific Appraisal District.

Operational Changes Required

Contracts

  • Tax Consultant Agreements: Review engagement letters with third-party property tax consultants. Amend contracts to require immediate notification if an Appraisal District (CAD) receives a request for your property data from the Study Group.
  • Confidentiality Clauses: Ensure existing agreements with CADs regarding trade secrets explicitly cite Texas Government Code Section 552.110 to prevent automatic disclosure to the Study Group without notice.

Hiring/Training

  • No new hiring required.
  • Internal Briefing: Tax Directors and Government Affairs teams must be briefed that the "Property Value Study" is now under legislative review. They must monitor the appointment of the six legislative members to this Group.

Reporting & Record-Keeping

  • Data Defense: The Study Group can demand "relevant information" from CADs. You are not required to file new forms today, but you must audit the data currently held by your CAD (asset lists, depreciation schedules). Ensure it is defensible and clearly marked as proprietary.
  • Proprietary Markings: If the Study Group requests data, the CAD is legally obligated to provide it. Ensure your CAD has your data flagged as "Confidential" to trigger potential exceptions to public disclosure once it enters the legislative record.

Fees & Costs

  • No immediate fee changes.
  • Budget Impact: Allocate budget for potential legal counsel to intervene if the Study Group subpoenas highly sensitive commercial data regarding your asset valuations.

Strategic Ambiguities & Considerations

  • Definition of "Complex Property": The statute does not define this term. The Comptroller and the Study Group will likely interpret this broadly to include any industrial, utility, or mineral interest property where local values deviate from state values.
  • Scope of "Alternative Methods": The Group is tasked with finding "alternative methods" for verification. This is vague and could lead to recommendations for mandatory sales price disclosure or the elimination of specific depreciation tables currently used by industry.
  • Data Privacy vs. Legislative Oversight: The Act requires entities to comply with information requests but does not explicitly override trade secret protections. This creates a legal gray zone regarding how much proprietary pricing or process data must be handed over to the Legislature.

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Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

02

Legislative Timeline

This bill's path through the Texas Legislature

Filed
Mar 10, 2025
Passed House
Apr 30, 2025
Passed Senate
May 28, 2025
Signed
Jun 20, 2025
TopicsGovernorInterim StudiesProperty InterestsProperty Interests--real PropertyState Agencies, Boards & CommissionsState Agencies, Boards & Commissions--newly ProposedTaxationTaxation--property-appraisals & Appraisal DistrictsLieutenant GovernorSpeaker of the HouseComptroller of Public AccountsTaxation--school District
03

House Authors

Rep. Trey Martinez FischerDemocrat · Primary Author
Joint Authors

Senate Sponsors

Sen. Paul BettencourtRepublican · Primary Sponsor
Cosponsors (1)

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

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Quick Reference

Frequently Asked Questions

Common questions about HB4236

Q

What does Texas HB4236 do?

HB4236 establishes a legislative "School District Property Value Study Group" to scrutinize and potentially overhaul how "complex properties" (industrial, utility, and large commercial) are valued for tax purposes. While this Act levies no immediate tax, it signals a legislative intent to redefine valuation methodologies to capture more revenue from major assets in the 2027 session; businesses with specialized appraisal methods are the primary target. Implementation Timeline Effective Date: June 20, 2025 (Immediate).

Q

Who authored HB4236?

HB4236 was authored by Texas Representative Trey Martinez Fischer during the Regular Session.

Q

When was HB4236 signed into law?

HB4236 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce HB4236?

HB4236 is enforced by Comptroller of Public Accounts, School District Property Value Study Group (Newly Created) and Texas Education Agency (TEA).

Q

How urgent is compliance with HB4236?

The compliance urgency for HB4236 is rated as "low". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

Q

What is the cost impact of HB4236?

The cost impact of HB4236 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does HB4236 address?

HB4236 addresses topics including governor, interim studies, property interests, property interests--real property and state agencies, boards & commissions.

Legislative data provided by LegiScanLast updated: November 25, 2025

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