Texas 2019 - 86th Regular

Texas House Bill HB4433 Compare Versions

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Old	New	Differences
1	1	86R14312 SMT-D
2	2	By: Bohac H.B. No. 4433
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to a temporary exemption from ad valorem taxation of a
8	8	portion of the appraised value of certain property damaged by a
9	9	disaster.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by
12	12	adding Section 11.35 to read as follows:
13	13	Sec. 11.35. TEMPORARY EXEMPTION FOR QUALIFIED PROPERTY
14	14	DAMAGED BY DISASTER. (a) In this section, "qualified property"
15	15	means property that:
16	16	(1) consists of:
17	17	(A) tangible personal property used for the
18	18	production of income; or
19	19	(B) an improvement to real property;
20	20	(2) is located in an area declared by the governor to
21	21	be a disaster area following a disaster;
22	22	(3) is at least 15 percent damaged by the disaster, as
23	23	determined by the chief appraiser under this section; and
24	24	(4) for property described by Subdivision (1)(A), is
25	25	the subject of a rendition statement or property report filed by the
26	26	property owner under Section 22.01 that demonstrates that the
27	27	property had taxable situs in the disaster area for the tax year in
28	28	which the disaster occurred.
29	29	(b) A person is entitled to an exemption from taxation by a
30	30	taxing unit of a portion of the appraised value of qualified
31	31	property that the person owns in an amount determined under
32	32	Subsection (e).
33	33	(c) On receipt of an application for the exemption
34	34	authorized by this section, the chief appraiser shall determine
35	35	whether any item of qualified property that is the subject of the
36	36	application is at least 15 percent damaged by the disaster and
37	37	assign to each such item of qualified property a damage assessment
38	38	rating of Level I, Level II, Level III, or Level IV, as appropriate,
39	39	as provided by Subsection (d). In determining the appropriate
40	40	damage assessment rating, the chief appraiser may rely on
41	41	information provided by a county emergency management authority,
42	42	the Federal Emergency Management Agency, or any other source the
43	43	chief appraiser considers appropriate.
44	44	(d) The chief appraiser shall assign to an item of qualified
45	45	property:
46	46	(1) a Level I damage assessment rating if the property
47	47	is at least 15 percent, but less than 30 percent, damaged, meaning
48	48	that the property suffered minimal damage and may continue to be
49	49	used as intended;
50	50	(2) a Level II damage assessment rating if the
51	51	property is at least 30 percent, but less than 60 percent, damaged,
52	52	which, for qualified property described by Subsection (a)(1)(B),
53	53	means that the property has suffered only nonstructural damage,
54	54	including nonstructural damage to the roof, walls, foundation, or
55	55	mechanical components, and the waterline, if any, is less than 18
56	56	inches above the floor;
57	57	(3) a Level III damage assessment rating if the
58	58	property is at least 60 percent damaged but is not a total loss,
59	59	which, for qualified property described by Subsection (a)(1)(B),
60	60	means that the property has suffered significant structural damage
61	61	requiring extensive repair due to the failure or partial failure of
62	62	structural elements, wall elements, or the foundation, or the
63	63	waterline is at least 18 inches above the floor; or
64	64	(4) a Level IV damage assessment rating if the
65	65	property is a total loss, meaning that repair of the property is not
66	66	feasible.
67	67	(e) Subject to Subsection (f), the amount of the exemption
68	68	authorized by this section for an item of qualified property is
69	69	determined by multiplying the appraised value, determined for the
70	70	tax year in which the disaster occurred, of the property by:
71	71	(1) 15 percent, if the property is assigned a Level I
72	72	damage assessment rating;
73	73	(2) 30 percent, if the property is assigned a Level II
74	74	damage assessment rating;
75	75	(3) 60 percent, if the property is assigned a Level III
76	76	damage assessment rating; or
77	77	(4) 100 percent, if the property is assigned a Level IV
78	78	damage assessment rating.
79	79	(f) If a person qualifies for the exemption authorized by
80	80	this section after the beginning of the tax year, the amount of the
81	81	exemption is calculated by multiplying the amount determined under
82	82	Subsection (e) by a fraction, the denominator of which is 365 and
83	83	the numerator of which is the number of days remaining in the tax
84	84	year after the day on which the governor first declares the area in
85	85	which the person's qualified property is located to be a disaster
86	86	area, including the day on which the governor makes the
87	87	declaration.
88	88	(g) If a person qualifies for the exemption authorized by
89	89	this section after the amount of the tax due on the qualified
90	90	property is calculated and the effect of the qualification is to
91	91	reduce the amount of the tax due on the property, the assessor for
92	92	each taxing unit that has adopted the exemption shall recalculate
93	93	the amount of the tax due on the property and correct the tax roll.
94	94	If the tax bill has been mailed and the tax on the property has not
95	95	been paid, the assessor shall mail a corrected tax bill to the
96	96	person in whose name the property is listed on the tax roll or to the
97	97	person's authorized agent. If the tax on the property has been
98	98	paid, the tax collector for the taxing unit shall refund to the
99	99	person who paid the tax the amount by which the payment exceeded the
100	100	tax due. No interest is due on an amount refunded under this
101	101	subsection.
102	102	(h) The exemption authorized by this section expires as to
103	103	an item of qualified property on January 1 of the first tax year in
104	104	which the property is reappraised under Section 25.18.
105	105	SECTION 2. Section 11.42(e), Tax Code, is amended to read as
106	106	follows:
107	107	(e) A person who qualifies for an exemption under Section
108	108	11.131 or 11.35 after January 1 of a tax year may receive the
109	109	exemption for the applicable portion of that tax year immediately
110	110	on qualification for the exemption.
111	111	SECTION 3. Section 11.43, Tax Code, is amended by amending
112	112	Subsection (c) and adding Subsection (s) to read as follows:
113	113	(c) An exemption provided by Section 11.13, 11.131, 11.132,
114	114	11.133, 11.134, 11.17, 11.18, 11.182, 11.1827, 11.183, 11.19,
115	115	11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m), 11.231,
116	116	11.254, 11.27, 11.271, 11.29, 11.30, 11.31, [or] 11.315, or 11.35,
117	117	once allowed, need not be claimed in subsequent years, and except as
118	118	otherwise provided by Subsection (e), the exemption applies to the
119	119	property until it changes ownership or the person's qualification
120	120	for the exemption changes. However, except as provided by
121	121	Subsection (r), the chief appraiser may require a person allowed
122	122	one of the exemptions in a prior year to file a new application to
123	123	confirm the person's current qualification for the exemption by
124	124	delivering a written notice that a new application is required,
125	125	accompanied by an appropriate application form, to the person
126	126	previously allowed the exemption. If the person previously allowed
127	127	the exemption is 65 years of age or older, the chief appraiser may
128	128	not cancel the exemption due to the person's failure to file the new
129	129	application unless the chief appraiser complies with the
130	130	requirements of Subsection (q), if applicable.
131	131	(s) A person who qualifies for an exemption under Section
132	132	11.35 must apply for the exemption not later than the 105th day
133	133	after the date the governor declares the area in which the person's
134	134	qualified property is located to be a disaster area, provided that
135	135	the chief appraiser may extend the deadline for good cause shown.
136	136	SECTION 4. Section 11.45, Tax Code, is amended by adding
137	137	Subsection (e) to read as follows:
138	138	(e) If the chief appraiser approves, modifies, or denies an
139	139	application for an exemption under Section 11.35, the chief
140	140	appraiser shall deliver a written notice of the approval,
141	141	modification, or denial to the applicant not later than the fifth
142	142	day after the date the chief appraiser makes the determination. The
143	143	notice must include the damage assessment rating assigned by the
144	144	chief appraiser to each item of qualified property that is the
145	145	subject of the application and a brief explanation of the
146	146	procedures for protesting the chief appraiser's determination. The
147	147	notice required under this subsection is in lieu of any notice that
148	148	would otherwise be required under Subsection (d).
149	149	SECTION 5. Section 26.012(15), Tax Code, is amended to read
150	150	as follows:
151	151	(15) "Lost property levy" means the amount of taxes
152	152	levied in the preceding year on property value that was taxable in
153	153	the preceding year but is not taxable in the current year because
154	154	the property is exempt in the current year under a provision of this
155	155	code other than Section 11.251, [or] 11.253, or 11.35, the property
156	156	has qualified for special appraisal under Chapter 23 in the current
157	157	year, or the property is located in territory that has ceased to be
158	158	a part of the taxing unit since the preceding year.
159	159	SECTION 6. Section 41.03(a), Tax Code, is amended to read as
160	160	follows:
161	161	(a) A taxing unit is entitled to challenge before the
162	162	appraisal review board:
163	163	(1) the level of appraisals of any category of
164	164	property in the district or in any territory in the district, but
165	165	not the appraised value of a single taxpayer's property;
166	166	(2) an exclusion of property from the appraisal
167	167	records;
168	168	(3) a grant in whole or in part of a partial exemption,
169	169	other than an exemption under Section 11.35;
170	170	(4) a determination that land qualifies for appraisal
171	171	as provided by Subchapter C, D, E, or H, Chapter 23; or
172	172	(5) a failure to identify the taxing unit as one in
173	173	which a particular property is taxable.
174	174	SECTION 7. Section 41.41, Tax Code, is amended by adding
175	175	Subsection (c) to read as follows:
176	176	(c) Notwithstanding Subsection (a), a property owner is
177	177	entitled to protest before the appraisal review board only the
178	178	following actions of the chief appraiser in relation to an
179	179	exemption under Section 11.35:
180	180	(1) the modification or denial of an application for
181	181	an exemption under that section; or
182	182	(2) the determination of the appropriate damage
183	183	assessment rating for an item of qualified property under that
184	184	section.
185	185	SECTION 8. Section 41.44(a), Tax Code, is amended to read as
186	186	follows:
187	187	(a) Except as provided by Subsections (b), (c), (c-1), and
188	188	(c-2), to be entitled to a hearing and determination of a protest,
189	189	the property owner initiating the protest must file a written
190	190	notice of the protest with the appraisal review board having
191	191	authority to hear the matter protested:
192	192	(1) not later than May 15 or the 30th day after the
193	193	date that notice to the property owner was delivered to the property
194	194	owner as provided by Section 25.19, whichever is later;
195	195	(2) in the case of a protest of a change in the
196	196	appraisal records ordered as provided by Subchapter A of this
197	197	chapter or by Chapter 25, not later than the 30th day after the date
198	198	notice of the change is delivered to the property owner;
199	199	(3) in the case of a determination that a change in the
200	200	use of land appraised under Subchapter C, D, E, or H, Chapter 23,
201	201	has occurred, not later than the 30th day after the date the notice
202	202	of the determination is delivered to the property owner; [or]
203	203	(4) in the case of a determination of eligibility for a
204	204	refund under Section 23.1243, not later than the 30th day after the
205	205	date the notice of the determination is delivered to the property
206	206	owner; or
207	207	(5) in the case of a protest of the modification or
208	208	denial of an application for an exemption under Section 11.35, or
209	209	the determination of an appropriate damage assessment rating for an
210	210	item of qualified property under that section, not later than the
211	211	30th day after the date the property owner receives the notice
212	212	required under Section 11.45(e).
213	213	SECTION 9. Section 403.302(d), Government Code, is amended
214	214	to read as follows:
215	215	(d) For the purposes of this section, "taxable value" means
216	216	the market value of all taxable property less:
217	217	(1) the total dollar amount of any residence homestead
218	218	exemptions lawfully granted under Section 11.13(b) or (c), Tax
219	219	Code, in the year that is the subject of the study for each school
220	220	district;
221	221	(2) one-half of the total dollar amount of any
222	222	residence homestead exemptions granted under Section 11.13(n), Tax
223	223	Code, in the year that is the subject of the study for each school
224	224	district;
225	225	(3) the total dollar amount of any exemptions granted
226	226	before May 31, 1993, within a reinvestment zone under agreements
227	227	authorized by Chapter 312, Tax Code;
228	228	(4) subject to Subsection (e), the total dollar amount
229	229	of any captured appraised value of property that:
230	230	(A) is within a reinvestment zone created on or
231	231	before May 31, 1999, or is proposed to be included within the
232	232	boundaries of a reinvestment zone as the boundaries of the zone and
233	233	the proposed portion of tax increment paid into the tax increment
234	234	fund by a school district are described in a written notification
235	235	provided by the municipality or the board of directors of the zone
236	236	to the governing bodies of the other taxing units in the manner
237	237	provided by former Section 311.003(e), Tax Code, before May 31,
238	238	1999, and within the boundaries of the zone as those boundaries
239	239	existed on September 1, 1999, including subsequent improvements to
240	240	the property regardless of when made;
241	241	(B) generates taxes paid into a tax increment
242	242	fund created under Chapter 311, Tax Code, under a reinvestment zone
243	243	financing plan approved under Section 311.011(d), Tax Code, on or
244	244	before September 1, 1999; and
245	245	(C) is eligible for tax increment financing under
246	246	Chapter 311, Tax Code;
247	247	(5) the total dollar amount of any captured appraised
248	248	value of property that:
249	249	(A) is within a reinvestment zone:
250	250	(i) created on or before December 31, 2008,
251	251	by a municipality with a population of less than 18,000; and
252	252	(ii) the project plan for which includes
253	253	the alteration, remodeling, repair, or reconstruction of a
254	254	structure that is included on the National Register of Historic
255	255	Places and requires that a portion of the tax increment of the zone
256	256	be used for the improvement or construction of related facilities
257	257	or for affordable housing;
258	258	(B) generates school district taxes that are paid
259	259	into a tax increment fund created under Chapter 311, Tax Code; and
260	260	(C) is eligible for tax increment financing under
261	261	Chapter 311, Tax Code;
262	262	(6) the total dollar amount of any exemptions granted
263	263	under Section 11.251 or 11.253, Tax Code;
264	264	(7) the difference between the comptroller's estimate
265	265	of the market value and the productivity value of land that
266	266	qualifies for appraisal on the basis of its productive capacity,
267	267	except that the productivity value estimated by the comptroller may
268	268	not exceed the fair market value of the land;
269	269	(8) the portion of the appraised value of residence
270	270	homesteads of individuals who receive a tax limitation under
271	271	Section 11.26, Tax Code, on which school district taxes are not
272	272	imposed in the year that is the subject of the study, calculated as
273	273	if the residence homesteads were appraised at the full value
274	274	required by law;
275	275	(9) a portion of the market value of property not
276	276	otherwise fully taxable by the district at market value because of:
277	277	(A) action required by statute or the
278	278	constitution of this state, other than Section 11.311, Tax Code,
279	279	that, if the tax rate adopted by the district is applied to it,
280	280	produces an amount equal to the difference between the tax that the
281	281	district would have imposed on the property if the property were
282	282	fully taxable at market value and the tax that the district is
283	283	actually authorized to impose on the property, if this subsection
284	284	does not otherwise require that portion to be deducted; or
285	285	(B) action taken by the district under Subchapter
286	286	B or C, Chapter 313, Tax Code, before the expiration of the
287	287	subchapter;
288	288	(10) the market value of all tangible personal
289	289	property, other than manufactured homes, owned by a family or
290	290	individual and not held or used for the production of income;
291	291	(11) the appraised value of property the collection of
292	292	delinquent taxes on which is deferred under Section 33.06, Tax
293	293	Code;
294	294	(12) the portion of the appraised value of property
295	295	the collection of delinquent taxes on which is deferred under
296	296	Section 33.065, Tax Code; [and]
297	297	(13) the amount by which the market value of a
298	298	residence homestead to which Section 23.23, Tax Code, applies
299	299	exceeds the appraised value of that property as calculated under
300	300	that section; and
301	301	(14) the total dollar amount of any exemptions granted
302	302	under Section 11.35, Tax Code.
303	303	SECTION 10. Section 23.02, Tax Code, is repealed.
304	304	SECTION 11. Section 11.35, Tax Code, as added by this Act,
305	305	applies only to ad valorem taxes imposed for a tax year that begins
306	306	on or after the effective date of this Act.
307	307	SECTION 12. This Act takes effect January 1, 2020, but only
308	308	if the constitutional amendment proposed by the 86th Legislature,
309	309	Regular Session, 2019, authorizing the legislature to provide for a
310	310	temporary exemption from ad valorem taxation of a portion of the
311	311	appraised value of certain property damaged by a disaster is
312	312	approved by the voters. If that amendment is not approved by the
313	313	voters, this Act has no effect.