Relating to the reappraisal for ad valorem taxation purposes of certain property completely destroyed or partially damaged by an accidental fire.
Impact
The impact of SB678 on state laws is significant as it introduces a structured approach for reappraising properties after fire incidents, which could alleviate the tax burden on property owners who experience such unfortunate events. The chief appraisers of appraisal districts will be required to reappraise properties upon request, thereby adding accountability and timely responses to property owners’ needs. The bill also stipulates that the Texas comptroller will develop guidelines in consultation with appraisal districts to implement this reappraisal process effectively by January 1, 2026.
Summary
SB678 is a legislative bill aimed at modifying the procedures for reappraising property for ad valorem taxation in Texas when that property has been completely destroyed or partially damaged by an accidental fire. The bill specifies a 'qualified property' as real property that has been entirely destroyed or at least 15% damaged due to an accidental fire. This categorization notably includes manufactured homes used as dwellings. Property owners will have the ability to request a reappraisal of their property within 180 days following the fire incident, which will allow them to adjust their tax obligations accordingly.
Contention
While the bill aims to provide relief for property owners affected by accidental fire damage, it also raises questions concerning the administrative workload for appraisal districts and the clarity of guidelines that will be established. Stakeholders may have differing views on how these new procedures will affect the operational dynamics within these districts, particularly regarding how quickly and efficiently they can respond to requests for reappraisal. The bill will only apply to fires occurring on or after January 1, 2026, setting a future date for implementation that may lead to further discussions and refinements in the interim.