Texas 2009 - 81st Regular

Texas House Bill HB770 Compare Versions

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1	1	H.B. No. 770
2	2
3	3
4	4	AN ACT
5	5	relating to ad valorem tax relief for an owner of certain property,
6	6	including a residence homestead that is rendered uninhabitable or
7	7	unusable by a casualty or by wind or water damage, and to a
8	8	restriction on the authority to bring an action to remove a house
9	9	that is partially located on a public beach as a result of a
10	10	meteorological event.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 61.018, Natural Resources Code, is
13	13	amended by amending Subsection (a) and adding Subsections (a-1),
14	14	(a-2), and (a-3) to read as follows:
15	15	(a) Except as provided by Subsection (a-1), any [Any] county
16	16	attorney, district attorney, or criminal district attorney, or the
17	17	attorney general at the request of the commissioner, shall file in a
18	18	district court of Travis County, or in the county in which the
19	19	property is located, a suit to obtain either a temporary or
20	20	permanent court order or injunction, either prohibitory or
21	21	mandatory, to remove or prevent any improvement, maintenance,
22	22	obstruction, barrier, or other encroachment on a public beach, or
23	23	to prohibit any unlawful restraint on the public's right of access
24	24	to and use of a public beach or other activity that violates this
25	25	chapter.
26	26	(a-1) A county attorney, district attorney, or criminal
27	27	district attorney or the attorney general may not file a suit under
28	28	Subsection (a) to obtain a temporary or permanent court order or
29	29	injunction, either prohibitory or mandatory, to remove a house from
30	30	a public beach if:
31	31	(1) the line of vegetation establishing the boundary
32	32	of the public beach moved as a result of a meteorological event that
33	33	occurred before January 1, 2009;
34	34	(2) the house was located landward of the natural line
35	35	of vegetation before the meteorological event;
36	36	(3) a portion of the house continues to be located
37	37	landward of the line of vegetation; and
38	38	(4) the house is located on a peninsula in a county
39	39	with a population of more than 250,000 and less than 251,000 that
40	40	borders the Gulf of Mexico.
41	41	(a-2) The owner of a house described by Subsection (a-1) may
42	42	repair or rebuild the house if the house was damaged or destroyed by
43	43	the meteorological event.
44	44	(a-3) Notwithstanding Subsection (a-1), a county attorney,
45	45	district attorney, or criminal district attorney or the attorney
46	46	general may file a suit under Subsection (a) to obtain a temporary
47	47	or permanent court order or injunction, either prohibitory or
48	48	mandatory, to remove a house described by Subsection (a-1) from a
49	49	public beach if the house was damaged or destroyed by the
50	50	meteorological event and the owner of the house fails to repair or
51	51	rebuild the house before September 1, 2013.
52	52	SECTION 2. Subchapter B, Chapter 11, Tax Code, is amended by
53	53	adding Section 11.135 to read as follows:
54	54	Sec. 11.135. CONTINUATION OF RESIDENCE HOMESTEAD EXEMPTION
55	55	WHILE REPLACEMENT STRUCTURE IS CONSTRUCTED; SALE OF PROPERTY. (a)
56	56	If a qualified residential structure for which the owner receives
57	57	an exemption under Section 11.13 is rendered uninhabitable or
58	58	unusable by a casualty or by wind or water damage, the owner may
59	59	continue to receive the exemption for the structure and the land and
60	60	improvements used in the residential occupancy of the structure
61	61	while the owner constructs a replacement qualified residential
62	62	structure on the land if the owner does not establish a different
63	63	principal residence for which the owner receives an exemption under
64	64	Section 11.13 during that period and intends to return and occupy
65	65	the structure as the owner's principal residence. To continue to
66	66	receive the exemption, the owner must begin active construction of
67	67	the replacement qualified residential structure or other physical
68	68	preparation of the site on which the structure is to be located not
69	69	later than the first anniversary of the date the owner ceases to
70	70	occupy the former qualified residential structure as the owner's
71	71	principal residence. The owner may not receive the exemption for
72	72	that property under the circumstances described by this subsection
73	73	for more than two years.
74	74	(b) For purposes of Subsection (a), the site of a
75	75	replacement qualified residential structure is under physical
76	76	preparation if the owner has engaged in architectural or
77	77	engineering work, soil testing, land clearing activities, or site
78	78	improvement work necessary for the construction of the structure or
79	79	has conducted an environmental or land use study relating to the
80	80	construction of the structure.
81	81	(c) If an owner receives an exemption for property under
82	82	Section 11.13 under the circumstances described by Subsection (a)
83	83	and sells the property before the owner completes construction of a
84	84	replacement qualified residential structure on the property, an
85	85	additional tax is imposed on the property equal to the difference
86	86	between the taxes imposed on the property for each of the years in
87	87	which the owner received the exemption and the tax that would have
88	88	been imposed had the owner not received the exemption in each of
89	89	those years, plus interest at an annual rate of seven percent
90	90	calculated from the dates on which the differences would have
91	91	become due.
92	92	(d) A tax lien attaches to property on the date a sale under
93	93	the circumstances described by Subsection (c) occurs to secure
94	94	payment of the additional tax and interest imposed by that
95	95	subsection and any penalties incurred. The lien exists in favor of
96	96	all taxing units for which the additional tax is imposed.
97	97	(e) A determination that a sale of property under the
98	98	circumstances described by Subsection (c) has occurred is made by
99	99	the chief appraiser. The chief appraiser shall deliver a notice of
100	100	the determination to the owner of the property as soon as possible
101	101	after making the determination and shall include in the notice an
102	102	explanation of the owner's right to protest the determination. If
103	103	the owner does not file a timely protest or if the final
104	104	determination of the protest is that the additional taxes are due,
105	105	the assessor for each taxing unit shall prepare and deliver a bill
106	106	for the additional taxes plus interest as soon as practicable. The
107	107	taxes and interest are due and become delinquent and incur
108	108	penalties and interest as provided by law for ad valorem taxes
109	109	imposed by the taxing unit if not paid before the next February 1
110	110	that is at least 20 days after the date the bill is delivered to the
111	111	owner of the property.
112	112	(f) The sanctions provided by Subsection (c) do not apply if
113	113	the sale is:
114	114	(1) for right-of-way; or
115	115	(2) to this state or a political subdivision of this
116	116	state to be used for a public purpose.
117	117	(g) The comptroller shall adopt rules and forms to implement
118	118	this section.
119	119	SECTION 3. Subchapter B, Chapter 11, Tax Code, is amended by
120	120	adding Section 11.231 to read as follows:
121	121	Sec. 11.231. NONPROFIT COMMUNITY BUSINESS ORGANIZATION
122	122	PROVIDING ECONOMIC DEVELOPMENT SERVICES TO LOCAL COMMUNITY. (a)
123	123	In this section, "nonprofit community business organization" means
124	124	an organization that meets the following requirements:
125	125	(1) the organization has been in existence for at
126	126	least the preceding five years;
127	127	(2) the organization:
128	128	(A) is a nonprofit corporation organized under
129	129	the Texas Non-Profit Corporation Act (Article 1396-1.01 et seq.,
130	130	Vernon's Texas Civil Statutes) or a nonprofit corporation formed
131	131	under the Texas Nonprofit Corporation Law, as described by Section
132	132	1.008, Business Organizations Code;
133	133	(B) is a nonprofit organization described by
134	134	Section 501(c)(6), Internal Revenue Code of 1986; and
135	135	(C) is not a statewide organization;
136	136	(3) for at least the preceding three years, the
137	137	organization has maintained a dues-paying membership of at least 50
138	138	members; and
139	139	(4) the organization:
140	140	(A) has a board of directors elected by the
141	141	members;
142	142	(B) does not compensate members of the board of
143	143	directors for service on the board;
144	144	(C) with respect to its activities in this state,
145	145	is engaged primarily in performing functions listed in Subsection
146	146	(d);
147	147	(D) is primarily supported by membership dues and
148	148	other income from activities substantially related to its primary
149	149	functions; and
150	150	(E) is not, has not formed, and does not
151	151	financially support a political committee as defined by Section
152	152	251.001, Election Code.
153	153	(b) An association that qualifies as a nonprofit community
154	154	business organization as provided by this section is entitled to an
155	155	exemption from taxation of:
156	156	(1) the buildings and tangible personal property that:
157	157	(A) are owned by the nonprofit community business
158	158	organization; and
159	159	(B) except as permitted by Subsection (c), are
160	160	used exclusively by qualified nonprofit community business
161	161	organizations to perform their primary functions; and
162	162	(2) the real property owned by the nonprofit community
163	163	business organization consisting of:
164	164	(A) an incomplete improvement that:
165	165	(i) is under active construction or other
166	166	physical preparation; and
167	167	(ii) is designed and intended to be used
168	168	exclusively by qualified nonprofit community business
169	169	organizations; and
170	170	(B) the land on which the incomplete improvement
171	171	is located that will be reasonably necessary for the use of the
172	172	improvement by qualified nonprofit community business
173	173	organizations.
174	174	(c) Use of exempt property by persons who are not nonprofit
175	175	community business organizations qualified as provided by this
176	176	section does not result in the loss of an exemption authorized by
177	177	this section if the use is incidental to use by qualified nonprofit
178	178	community business organizations and limited to activities that
179	179	benefit the beneficiaries of the nonprofit community business
180	180	organizations that own or use the property.
181	181	(d) To qualify for an exemption under this section, a
182	182	nonprofit community business organization must be engaged
183	183	primarily in performing one or more of the following functions in
184	184	the local community:
185	185	(1) promoting the common economic interests of
186	186	commercial enterprises;
187	187	(2) improving the business conditions of one or more
188	188	types of business; or
189	189	(3) otherwise providing services to aid in economic
190	190	development.
191	191	(e) In this section, "building" includes the land that is
192	192	reasonably necessary for use of, access to, and ornamentation of
193	193	the building.
194	194	(f) A property may not be exempted under Subsection (b)(2)
195	195	for more than three years.
196	196	(g) For purposes of Subsection (b)(2), an incomplete
197	197	improvement is under physical preparation if the nonprofit
198	198	community business organization has:
199	199	(1) engaged in architectural or engineering work, soil
200	200	testing, land clearing activities, or site improvement work
201	201	necessary for the construction of the improvement; or
202	202	(2) conducted an environmental or land use study
203	203	relating to the construction of the improvement.
204	204	SECTION 4. Section 11.26, Tax Code, is amended by adding
205	205	Subsections (n) and (o) to read as follows:
206	206	(n) Notwithstanding Subsection (c), the limitation on tax
207	207	increases required by this section does not expire if the owner of
208	208	the structure qualifies for an exemption under Section 11.13 under
209	209	the circumstances described by Section 11.135(a).
210	210	(o) Notwithstanding Subsections (a), (a-3), and (b), an
211	211	improvement to property that would otherwise constitute an
212	212	improvement under Subsection (b) is not treated as an improvement
213	213	under that subsection if the improvement is a replacement structure
214	214	for a structure that was rendered uninhabitable or unusable by a
215	215	casualty or by wind or water damage. For purposes of appraising the
216	216	property in the tax year in which the structure would have
217	217	constituted an improvement under Subsection (b), the replacement
218	218	structure is considered to be an improvement under that subsection
219	219	only if:
220	220	(1) the square footage of the replacement structure
221	221	exceeds that of the replaced structure as that structure existed
222	222	before the casualty or damage occurred; or
223	223	(2) the exterior of the replacement structure is of
224	224	higher quality construction and composition than that of the
225	225	replaced structure.
226	226	SECTION 5. Section 11.261, Tax Code, is amended by adding
227	227	Subsections (l) and (m) to read as follows:
228	228	(l) Notwithstanding Subsection (d), a limitation on county,
229	229	municipal, or junior college district tax increases provided by
230	230	this section does not expire if the owner of the structure qualifies
231	231	for an exemption under Section 11.13 under the circumstances
232	232	described by Section 11.135(a).
233	233	(m) Notwithstanding Subsections (b) and (c), an improvement
234	234	to property that would otherwise constitute an improvement under
235	235	Subsection (c) is not treated as an improvement under that
236	236	subsection if the improvement is a replacement structure for a
237	237	structure that was rendered uninhabitable or unusable by a casualty
238	238	or by wind or water damage. For purposes of appraising the property
239	239	in the tax year in which the structure would have constituted an
240	240	improvement under Subsection (c), the replacement structure is
241	241	considered to be an improvement under that subsection only if:
242	242	(1) the square footage of the replacement structure
243	243	exceeds that of the replaced structure as that structure existed
244	244	before the casualty or damage occurred; or
245	245	(2) the exterior of the replacement structure is of
246	246	higher quality construction and composition than that of the
247	247	replaced structure.
248	248	SECTION 6. Section 11.42(d), Tax Code, is amended to read as
249	249	follows:
250	250	(d) A person who acquires property after January 1 of a tax
251	251	year may receive an exemption authorized by Section 11.17, 11.18,
252	252	11.19, 11.20, 11.21, 11.23, 11.231, or 11.30 for the applicable
253	253	portion of that tax year immediately on qualification for the
254	254	exemption.
255	255	SECTION 7. Section 11.43(c), Tax Code, is amended to read as
256	256	follows:
257	257	(c) An exemption provided by Section 11.13, 11.17, 11.18,
258	258	11.182, 11.183, 11.19, 11.20, 11.21, 11.22, 11.23(h), (j), or
259	259	(j-1), 11.231, 11.29, 11.30, or 11.31, once allowed, need not be
260	260	claimed in subsequent years, and except as otherwise provided by
261	261	Subsection (e), the exemption applies to the property until it
262	262	changes ownership or the person's qualification for the exemption
263	263	changes. However, the chief appraiser may require a person allowed
264	264	one of the exemptions in a prior year to file a new application to
265	265	confirm the person's current qualification for the exemption by
266	266	delivering a written notice that a new application is required,
267	267	accompanied by an appropriate application form, to the person
268	268	previously allowed the exemption.
269	269	SECTION 8. Section 23.23(f), Tax Code, is amended to read as
270	270	follows:
271	271	(f) Notwithstanding Subsections (a) and (e) and except as
272	272	provided by Subdivision (2), an improvement to property that would
273	273	otherwise constitute a new improvement is not treated as a new
274	274	improvement if the improvement is a replacement structure for a
275	275	structure that was rendered uninhabitable or unusable by a casualty
276	276	or by wind [mold] or water damage. For purposes of appraising the
277	277	property under Subsection (a) in the tax year in which the structure
278	278	would have constituted a new improvement:
279	279	(1) the appraised value the property would have had in
280	280	the preceding tax [last] year if the casualty or damage had not
281	281	occurred [in which the property was appraised for taxation before
282	282	the casualty or damage occurred] is considered to be the appraised
283	283	value of the property for that year, regardless of whether that
284	284	appraised value exceeds the actual appraised value of the property
285	285	for that year as limited by Subsection (a) [last year in which the
286	286	property was appraised for taxation for purposes of Subsection
287	287	(a)(2)(A)]; and
288	288	(2) the replacement structure is considered to be a
289	289	new improvement only if:
290	290	(A) the square footage of the replacement
291	291	structure exceeds that of [to the extent it is a significant
292	292	improvement over] the replaced structure as that structure existed
293	293	before the casualty or damage occurred; or
294	294	(B) the exterior of the replacement structure is
295	295	of higher quality construction and composition than that of the
296	296	replaced structure.
297	297	SECTION 9. This Act applies only to ad valorem taxes imposed
298	298	for a tax year beginning on or after the effective date of this Act.
299	299	SECTION 10. This Act takes effect January 1, 2010.
300	300	______________________________ ______________________________
301	301	President of the Senate Speaker of the House
302	302	I certify that H.B. No. 770 was passed by the House on May 7,
303	303	2009, by the following vote: Yeas 141, Nays 1, 1 present, not
304	304	voting; that the House refused to concur in Senate amendments to
305	305	H.B. No. 770 on May 29, 2009, and requested the appointment of a
306	306	conference committee to consider the differences between the two
307	307	houses; and that the House adopted the conference committee report
308	308	on H.B. No. 770 on May 31, 2009, by the following vote: Yeas 144,
309	309	Nays 0, 1 present, not voting.
310	310	______________________________
311	311	Chief Clerk of the House
312	312	I certify that H.B. No. 770 was passed by the Senate, with
313	313	amendments, on May 27, 2009, by the following vote: Yeas 31, Nays
314	314	0; at the request of the House, the Senate appointed a conference
315	315	committee to consider the differences between the two houses; and
316	316	that the Senate adopted the conference committee report on H.B. No.
317	317	770 on May 31, 2009, by the following vote: Yeas 30, Nays 1.
318	318	______________________________
319	319	Secretary of the Senate
320	320	APPROVED: __________________
321	321	Date
322	322	__________________
323	323	Governor