Relating to the treatment of a replacement structure for a structure that was rendered uninhabitable or unusable by a casualty or by wind or water damage as a new improvement for ad valorem tax purposes.
Impact
The bill's implications on state law reflect a shift in how damaged property is appraised for tax purposes. By excluding certain replacement structures from being classified as new improvements, the bill aims to alleviate the financial burden on homeowners who have lost their homes due to disasters. This could promote quicker recovery and rebuilding efforts, as individuals may be less deterred by added tax liabilities associated with the reconstruction of their homes.
Summary
House Bill 2241 addresses the treatment of replacement structures that have been rendered uninhabitable or unusable due to casualty, wind, or water damage for ad valorem tax purposes. The bill modifies Section 11.26 of the Texas Tax Code, establishing guidelines on how replacement structures are assessed. Specifically, it ensures that a replacement structure does not count as an improvement for tax purposes unless it exceeds the original structure's square footage or is of higher quality construction. This provision intends to mitigate tax increases on homeowners rebuilding after disasters.
Contention
Despite its intended benefits, the bill may present concerns for municipal governments reliant on property tax revenues. Critics of the bill may argue that such provisions could limit local government's ability to fund public services and infrastructure repairs, particularly in disaster-stricken areas. Another point of contention may revolve around defining the threshold of 'higher quality construction,' which could lead to disputes and varying interpretations in tax assessments.
Relating to the treatment of a replacement structure for a structure that was rendered uninhabitable or unusable by a casualty or by wind or water damage as a new improvement for ad valorem tax purposes.
Relating to a limitation on increases in the appraised value for ad valorem tax purposes of the residence homesteads of military veterans, individuals who are disabled or 65 years of age or older, and their surviving spouses.
Relating to limitations on increases in the appraised value for ad valorem tax purposes of residence homesteads and single-family residences other than residence homesteads.
Relating to limitations on increases in the appraised value for ad valorem tax purposes of residence homesteads and single-family residences other than residence homesteads.