Texas Senate Bill SB492

Texas 2019 - 86th Regular

Caption

Relating to the application of the limit on appraised value of a residence homestead for ad valorem tax purposes to an improvement that is a replacement structure for a structure that was rendered uninhabitable or unusable by a casualty or by wind or water damage.

Impact

The implications of SB492 are significant for homeowners in Texas who face the challenges of rebuilding after a destructive event. By ensuring that increased square footage or quality of construction of replacement homes does not lead to reevaluation of property taxes, the bill offers a measure of stability for families striving to restore their residences. This could greatly lessen the financial burden on those trying to recover from substantial damages while navigating tax obligations.

Summary

Senate Bill 492 addresses the appraised value limitations of residence homesteads for ad valorem tax purposes, specifically in cases where a residence becomes uninhabitable or unusable due to a casualty, such as water or wind damage. The bill proposes that improvements made to replace a damaged structure should not be classified as a new improvement, thereby preserving the existing appraised value limits. This legislative change is aimed at providing financial relief to homeowners affected by disasters, allowing them to rebuild without facing immediate tax increases due to new valuation assessments on their property.

Contention

Some concerns may arise regarding the bill’s definition and criteria for what constitutes a replacement structure. The bill mandates that the definition of 'disaster recovery program' is linked to community development and federal funds, which opens discussions about the adequacy of support and resources available to communities. Opponents might worry that the bill could unintentionally create loopholes for larger developments under the guise of disaster recovery, prompting debates on property rights and local regulations around rebuilding practices.