Texas House Bill HB4433

Texas 2019 - 86th Regular

Caption

Relating to a temporary exemption from ad valorem taxation of a portion of the appraised value of certain property damaged by a disaster.

Impact

The legislation will amend the Tax Code to facilitate these exemptions, allowing property owners to receive tax relief proportional to the extent of damage their properties have incurred. The chief appraiser is tasked with determining damage levels and may rely on various organizations for assessments. This provision is expected to provide immediate financial relief to affected property owners in disaster-stricken areas, thus fostering quicker recovery and rebuilding efforts within communities impacted by disasters.

Summary

House Bill 4433 proposes a temporary exemption from ad valorem taxation for property that has sustained significant damage due to a disaster. The bill defines 'qualified property' as tangible personal property used for income production or improvements to real property located in a disaster area declared by the governor. Specifically, properties must be at least 15 percent damaged to qualify for this exemption, which aims to ease the financial burden on property owners during recovery periods following natural disasters.

Contention

While the intent behind HB 4433 is to support recovery after disasters, concerns may arise regarding the administrative processes involved in assessing property damage and granting exemptions. The bill stipulates clear timelines for application and assessment, which could be cumbersome for counties dealing with the aftermath of a disaster. Moreover, the legislation also implies that all eligible properties will require thorough evaluations, which may stretch resources for appraisal districts already burdened by disaster recovery demands.