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