Texas House Bill HB493

Texas 2019 - 86th Regular

Caption

Relating to a temporary local option exemption from ad valorem taxation of a portion of the appraised value of certain property damaged by a disaster and reimbursement of a taxing unit for refunds the taxing unit pays to taxpayers as a result of the exemption.

Impact

If enacted, HB 493 would alter Texas tax law by adding Section 11.35 to the Tax Code. This change would allow local governments to provide a new avenue for disaster-impacted property owners to receive tax exemptions, ultimately providing financial relief and aiding in recovery efforts after disasters. The measure stipulates that reimbursement for refunds issued by taxing units as a result of granted exemptions will be provided by the state, allowing local jurisdictions to mitigate the fiscal impact more effectively. The introduction of this safety net aims to bolster community recovery in the aftermath of disasters.

Summary

House Bill 493 proposes a temporary local option exemption from ad valorem taxation for certain properties that have been damaged by a disaster. Specifically, the bill enables property owners of qualified properties—defined as tangible personal property used for income production or improvements to real property located in disaster-declared areas—to seek an exemption if their property is assessed as being at least 15% damaged. The governing bodies of taxing units must officially adopt this exemption within 60 days of the disaster declaration by the governor, thereby providing immediate tax relief to affected property owners.

Contention

The bill's provisions are designed to apply specifically to property damaged in disasters defined under state regulations, requiring certain thresholds for property damage assessments. This may raise concerns among local taxing authorities regarding the immediate financial implications of adopting such exemptions. Moreover, there may be debate surrounding the scope of what constitutes 'qualified property' and the administrative burden of assessing damage levels and processing applications for exemptions. Constructive dialogue around ensuring adequate state support and clear administrative procedures will be essential for effective implementation.