| 1 | 1 | | 86R13437 JES-D |
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| 2 | 2 | | By: Israel H.B. No. 4135 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the effect of certain residential structures on a |
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| 8 | 8 | | residence homestead exemption for ad valorem tax purposes. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 11.13(k), Tax Code, is amended to read as |
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| 11 | 11 | | follows: |
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| 12 | 12 | | (k) A qualified residential structure does not lose its |
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| 13 | 13 | | character as a residence homestead if a portion of the structure, or |
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| 14 | 14 | | a separate structure located on the same land as and having common |
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| 15 | 15 | | ownership with the structure that is occupied as the individual's |
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| 16 | 16 | | principal residence, is rented to another or is used primarily for |
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| 17 | 17 | | other purposes that are incompatible with the owner's residential |
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| 18 | 18 | | use of the structure. Except as provided by this subsection |
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| 19 | 19 | | [However], the amount of any residence homestead exemption does not |
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| 20 | 20 | | apply to the value of any [that] portion of the qualified |
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| 21 | 21 | | residential structure that is used primarily for purposes that are |
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| 22 | 22 | | incompatible with the owner's residential use. For purposes of |
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| 23 | 23 | | this section, a portion of the structure that is occupied as the |
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| 24 | 24 | | individual's principal residence, or a separate structure located |
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| 25 | 25 | | on the same land as and having common ownership with the structure |
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| 26 | 26 | | that is occupied as the individual's principal residence, that is |
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| 27 | 27 | | used for a single-family short-term or long-term residential |
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| 28 | 28 | | purpose, regardless of whether it generates rental income for the |
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| 29 | 29 | | owner, is considered part of the residence homestead if: |
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| 30 | 30 | | (1) there is only one such additional dwelling unit |
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| 31 | 31 | | located on the property that constitutes the owner's residence |
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| 32 | 32 | | homestead; |
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| 33 | 33 | | (2) the municipality or county in which the property |
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| 34 | 34 | | is located has adopted a program to encourage the construction or |
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| 35 | 35 | | addition of such additional dwelling units; and |
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| 36 | 36 | | (3) the additional dwelling unit was constructed or |
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| 37 | 37 | | added in compliance with the program to encourage the use of such |
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| 38 | 38 | | dwelling units. |
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| 39 | 39 | | SECTION 2. This Act applies only to an ad valorem tax year |
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| 40 | 40 | | that begins on or after the effective date of this Act. |
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| 41 | 41 | | SECTION 3. This Act takes effect January 1, 2020. |
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