Texas 2009 - 81st Regular

Texas House Bill HB1257 Compare Versions

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1	1	H.B. No. 1257
2	2
3	3
4	4	AN ACT
5	5	relating to the payment in installments of ad valorem taxes on
6	6	certain property owned by a business entity and located in a
7	7	disaster area and to the ad valorem taxation of a residence
8	8	homestead rendered uninhabitable or unusable by a casualty or by
9	9	wind or water damage.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. (a) Subchapter B, Chapter 11, Tax Code, is
12	12	amended by adding Section 11.135 to read as follows:
13	13	Sec. 11.135. CONTINUATION OF RESIDENCE HOMESTEAD EXEMPTION
14	14	WHILE REPLACEMENT STRUCTURE IS CONSTRUCTED; SALE OF PROPERTY. (a)
15	15	If a qualified residential structure for which the owner receives
16	16	an exemption under Section 11.13 is rendered uninhabitable or
17	17	unusable by a casualty or by wind or water damage, the owner may
18	18	continue to receive the exemption for the structure and the land and
19	19	improvements used in the residential occupancy of the structure
20	20	while the owner constructs a replacement qualified residential
21	21	structure on the land if the owner does not establish a different
22	22	principal residence for which the owner receives an exemption under
23	23	Section 11.13 during that period and intends to return and occupy
24	24	the structure as the owner's principal residence. To continue to
25	25	receive the exemption, the owner must begin active construction of
26	26	the replacement qualified residential structure or other physical
27	27	preparation of the site on which the structure is to be located not
28	28	later than the first anniversary of the date the owner ceases to
29	29	occupy the former qualified residential structure as the owner's
30	30	principal residence. The owner may not receive the exemption for
31	31	that property under the circumstances described by this subsection
32	32	for more than two years.
33	33	(b) For purposes of Subsection (a), the site of a
34	34	replacement qualified residential structure is under physical
35	35	preparation if the owner has engaged in architectural or
36	36	engineering work, soil testing, land clearing activities, or site
37	37	improvement work necessary for the construction of the structure or
38	38	has conducted an environmental or land use study relating to the
39	39	construction of the structure.
40	40	(c) If an owner receives an exemption for property under
41	41	Section 11.13 under the circumstances described by Subsection (a)
42	42	and sells the property before the owner completes construction of a
43	43	replacement qualified residential structure on the property, an
44	44	additional tax is imposed on the property equal to the difference
45	45	between the taxes imposed on the property for each of the years in
46	46	which the owner received the exemption and the tax that would have
47	47	been imposed had the owner not received the exemption in each of
48	48	those years, plus interest at an annual rate of seven percent
49	49	calculated from the dates on which the differences would have
50	50	become due.
51	51	(d) A tax lien attaches to property on the date a sale under
52	52	the circumstances described by Subsection (c) occurs to secure
53	53	payment of the additional tax and interest imposed by that
54	54	subsection and any penalties incurred. The lien exists in favor of
55	55	all taxing units for which the additional tax is imposed.
56	56	(e) A determination that a sale of property under the
57	57	circumstances described by Subsection (c) has occurred is made by
58	58	the chief appraiser. The chief appraiser shall deliver a notice of
59	59	the determination to the owner of the property as soon as possible
60	60	after making the determination and shall include in the notice an
61	61	explanation of the owner's right to protest the determination. If
62	62	the owner does not file a timely protest or if the final
63	63	determination of the protest is that the additional taxes are due,
64	64	the assessor for each taxing unit shall prepare and deliver a bill
65	65	for the additional taxes plus interest as soon as practicable. The
66	66	taxes and interest are due and become delinquent and incur
67	67	penalties and interest as provided by law for ad valorem taxes
68	68	imposed by the taxing unit if not paid before the next February 1
69	69	that is at least 20 days after the date the bill is delivered to the
70	70	owner of the property.
71	71	(f) The sanctions provided by Subsection (c) do not apply if
72	72	the sale is:
73	73	(1) for right-of-way; or
74	74	(2) to this state or a political subdivision of this
75	75	state to be used for a public purpose.
76	76	(g) The comptroller shall adopt rules and forms to implement
77	77	this section.
78	78	(b) Section 11.26, Tax Code, is amended by adding
79	79	Subsections (n) and (o) to read as follows:
80	80	(n) Notwithstanding Subsection (c), the limitation on tax
81	81	increases required by this section does not expire if the owner of
82	82	the structure qualifies for an exemption under Section 11.13 under
83	83	the circumstances described by Section 11.135(a).
84	84	(o) Notwithstanding Subsections (a), (a-3), and (b), an
85	85	improvement to property that would otherwise constitute an
86	86	improvement under Subsection (b) is not treated as an improvement
87	87	under that subsection if the improvement is a replacement structure
88	88	for a structure that was rendered uninhabitable or unusable by a
89	89	casualty or by wind or water damage. For purposes of appraising the
90	90	property in the tax year in which the structure would have
91	91	constituted an improvement under Subsection (b), the replacement
92	92	structure is considered to be an improvement under that subsection
93	93	only if:
94	94	(1) the square footage of the replacement structure
95	95	exceeds that of the replaced structure as that structure existed
96	96	before the casualty or damage occurred; or
97	97	(2) the exterior of the replacement structure is of
98	98	higher quality construction and composition than that of the
99	99	replaced structure.
100	100	(c) Section 11.261, Tax Code, is amended by adding
101	101	Subsections (l) and (m) to read as follows:
102	102	(l) Notwithstanding Subsection (d), a limitation on county,
103	103	municipal, or junior college district tax increases provided by
104	104	this section does not expire if the owner of the structure qualifies
105	105	for an exemption under Section 11.13 under the circumstances
106	106	described by Section 11.135(a).
107	107	(m) Notwithstanding Subsections (b) and (c), an improvement
108	108	to property that would otherwise constitute an improvement under
109	109	Subsection (c) is not treated as an improvement under that
110	110	subsection if the improvement is a replacement structure for a
111	111	structure that was rendered uninhabitable or unusable by a casualty
112	112	or by wind or water damage. For purposes of appraising the property
113	113	in the tax year in which the structure would have constituted an
114	114	improvement under Subsection (c), the replacement structure is
115	115	considered to be an improvement under that subsection only if:
116	116	(1) the square footage of the replacement structure
117	117	exceeds that of the replaced structure as that structure existed
118	118	before the casualty or damage occurred; or
119	119	(2) the exterior of the replacement structure is of
120	120	higher quality construction and composition than that of the
121	121	replaced structure.
122	122	(d) Section 23.23(f), Tax Code, is amended to read as
123	123	follows:
124	124	(f) Notwithstanding Subsections (a) and (e) and except as
125	125	provided by Subdivision (2), an improvement to property that would
126	126	otherwise constitute a new improvement is not treated as a new
127	127	improvement if the improvement is a replacement structure for a
128	128	structure that was rendered uninhabitable or unusable by a casualty
129	129	or by wind [mold] or water damage. For purposes of appraising the
130	130	property under Subsection (a) in the tax year in which the structure
131	131	would have constituted a new improvement:
132	132	(1) the appraised value the property would have had in
133	133	the preceding tax [last] year if the casualty or damage had not
134	134	occurred [in which the property was appraised for taxation before
135	135	the casualty or damage occurred] is considered to be the appraised
136	136	value of the property for that year, regardless of whether that
137	137	appraised value exceeds the actual appraised value of the property
138	138	for that year as limited by Subsection (a) [last year in which the
139	139	property was appraised for taxation for purposes of Subsection
140	140	(a)(2)(A)]; and
141	141	(2) the replacement structure is considered to be a
142	142	new improvement only if:
143	143	(A) the square footage of the replacement
144	144	structure exceeds that of [to the extent it is a significant
145	145	improvement over] the replaced structure as that structure existed
146	146	before the casualty or damage occurred; or
147	147	(B) the exterior of the replacement structure is
148	148	of higher quality construction and composition than that of the
149	149	replaced structure.
150	150	(e) This section applies only to ad valorem taxes imposed
151	151	for a tax year beginning on or after the effective date of this Act.
152	152	SECTION 2. Section 31.032, Tax Code, is amended by amending
153	153	Subsection (a) and adding Subsection (h) to read as follows:
154	154	(a) This section applies only to:
155	155	(1) real property that:
156	156	(A) is:
157	157	(i) the residence homestead of the owner or
158	158	consists of property that is used for residential purposes and that
159	159	has fewer than five living units; or
160	160	(ii) owned or leased by a business entity
161	161	that had not more than the amount calculated as provided by
162	162	Subsection (h) in gross receipts in the entity's most recent
163	163	federal tax year or state franchise tax annual period, according to
164	164	the applicable federal income tax return or state franchise tax
165	165	report of the entity;
166	166	(B) is located in a disaster area; and
167	167	(C) has been damaged as a direct result of the
168	168	disaster; [and]
169	169	(2) tangible personal property that is owned or leased
170	170	by a business entity described by Subdivision (1)(A)(ii); and
171	171	(3) taxes that are imposed on the property by a taxing
172	172	unit before the first anniversary of the disaster.
173	173	(h) For the 2009 tax year, the limit on gross receipts under
174	174	Subsection (a)(1)(A)(ii) is $5 million. For each subsequent tax
175	175	year, the comptroller shall adjust the limit to reflect inflation
176	176	by using the index that the comptroller considers to most
177	177	accurately report changes in the purchasing power of the dollar for
178	178	consumers in this state and shall publicize the adjusted limit.
179	179	Each collector shall use the adjusted limit as calculated by the
180	180	comptroller under this subsection to determine whether property is
181	181	owned or leased by a business entity described by Subsection
182	182	(a)(1)(A)(ii).
183	183	SECTION 3. This Act takes effect immediately if it receives
184	184	a vote of two-thirds of all the members elected to each house, as
185	185	provided by Section 39, Article III, Texas Constitution. If this
186	186	Act does not receive the vote necessary for immediate effect, this
187	187	Act takes effect September 1, 2009.
188	188	______________________________ ______________________________
189	189	President of the Senate Speaker of the House
190	190	I certify that H.B. No. 1257 was passed by the House on April
191	191	28, 2009, by the following vote: Yeas 149, Nays 0, 1 present, not
192	192	voting; and that the House concurred in Senate amendments to H.B.
193	193	No. 1257 on May 23, 2009, by the following vote: Yeas 137, Nays 0,
194	194	2 present, not voting.
195	195	______________________________
196	196	Chief Clerk of the House
197	197	I certify that H.B. No. 1257 was passed by the Senate, with
198	198	amendments, on May 19, 2009, by the following vote: Yeas 30, Nays
199	199	0.
200	200	______________________________
201	201	Secretary of the Senate
202	202	APPROVED: __________________
203	203	Date
204	204	__________________
205	205	Governor