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Panel approves 10-year 'Olympic average' appraisal method for class 4 properties
Summary
The committee adopted a proposal to set class 4 (residential and commercial) appraised values to a 10‑year 'Olympic average' (dropping high/low), with rules for newly constructed or reclassified properties; the plan passed 12–9 after an amendment narrowing scope to class 4.
Representative (transcript: 'Estman') presented HB 894 to smooth the large swings produced by two‑year appraisal cycles by using a 10‑year 'Olympic average' (drop the high and low appraisal years and average the remaining years) to produce taxable value for class 4 residential and commercial property. The sponsor supplied example calculations and said the change would make annual tax bills more predictable for homeowners.
The bill originally referenced multiple property classes; an amendment removed classes other than class 4 and added a provision for newly constructed, remodeled or reclassified properties (initial assessment at 100% of market value in first year, then averaged in subsequent years). The Department of Revenue’s property-assessment bureau (Bryce Kotz) attended to answer implementation questions.
Committee members discussed potential tax shifts to other property classes, the likely fiscal note and the practical challenges for new construction. After adopting the amendment to limit scope and add new‑construction rules, the committee approved the bill 12–9.
The sponsor acknowledged the bill would have a sizable fiscal note (potentially affecting school mills) and asked DOR to provide modeling as the measure moves forward.
