Texas 2019 - 86th Regular

Texas House Bill HB492 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	H.B. No. 492
	1	+	By: Shine, et al. (Senate Sponsor - Taylor) H.B. No. 492
	2	+	(In the Senate - Received from the House April 23, 2019;
	3	+	April 24, 2019, read first time and referred to Committee on
	4	+	Property Tax; May 21, 2019, reported adversely, with favorable
	5	+	Committee Substitute by the following vote: Yeas 5, Nays 0;
	6	+	May 21, 2019, sent to printer.)
	7	+	Click here to see the committee vote
	8	+	COMMITTEE SUBSTITUTE FOR H.B. No. 492 By: Bettencourt
2	9
3	10
	11	+	A BILL TO BE ENTITLED
4	12		AN ACT
5	13		relating to a temporary exemption from ad valorem taxation of a
6	14		portion of the appraised value of certain property damaged by a
7	15		disaster.
8	16		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	17		SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by
10	18		adding Section 11.35 to read as follows:
11	19		Sec. 11.35. TEMPORARY EXEMPTION FOR QUALIFIED PROPERTY
12	20		DAMAGED BY DISASTER. (a) In this section, "qualified property"
13	21		means property that:
14	22		(1) consists of:
15	23		(A) tangible personal property used for the
16		-	production of income;
17		-	(B) an improvement to real property; or
18		-	(C) a manufactured home as that term is defined
19		-	by Section 1201.003, Occupations Code, that is used as a dwelling,
20		-	regardless of whether the owner of the manufactured home elects to
21		-	treat the manufactured home as real property under Section
22		-	1201.2055, Occupations Code;
	24	+	production of income; or
	25	+	(B) an improvement to real property;
23	26		(2) is located in an area declared by the governor to
24	27		be a disaster area following a disaster;
25	28		(3) is at least 15 percent damaged by the disaster, as
26	29		determined by the chief appraiser under this section; and
27	30		(4) for property described by Subdivision (1)(A), is
28	31		the subject of a rendition statement or property report filed by the
29	32		property owner under Section 22.01 that demonstrates that the
30	33		property had taxable situs in the disaster area for the tax year in
31	34		which the disaster occurred.
32	35		(b) A person is entitled to an exemption from taxation by a
33	36		taxing unit of a portion of the appraised value of qualified
34	37		property that the person owns in an amount determined under
35		-	Subsection (h).
36		-	(c) Notwithstanding Subsection (b), if the governor first
37		-	declares territory in a taxing unit to be a disaster area as a
38		-	result of a disaster on or after the date a taxing unit adopts a tax
39		-	rate for the tax year in which the declaration is issued, a person
40		-	is not entitled to the exemption for that tax year unless the
41		-	governing body of the taxing unit adopts the exemption in the manner
42		-	provided by law for official action by the body.
43		-	(d) An exemption adopted by the governing body of a taxing
44		-	unit under Subsection (c) must:
45		-	(1) specify the disaster to which the exemption
46		-	pertains; and
47		-	(2) be adopted not later than the 60th day after the
48		-	date the governor first declares territory in the taxing unit to be
49		-	a disaster area as a result of the disaster.
50		-	(e) A taxing unit the governing body of which adopts an
51		-	exemption under Subsection (c) shall, not later than the seventh
52		-	day after the date the governing body adopts the exemption, notify
53		-	the chief appraiser of each appraisal district in which the taxing
54		-	unit participates, the assessor for the taxing unit, and the
55		-	comptroller of the adoption of the exemption.
56		-	(f) On receipt of an application for the exemption
	38	+	Subsection (e).
	39	+	(c) On receipt of an application for the exemption
57	40		authorized by this section, the chief appraiser shall determine
58	41		whether any item of qualified property that is the subject of the
59	42		application is at least 15 percent damaged by the disaster and
60	43		assign to each such item of qualified property a damage assessment
61	44		rating of Level I, Level II, Level III, or Level IV, as appropriate,
62		-	as provided by Subsection (g). In determining the appropriate
	45	+	as provided by Subsection (d). In determining the appropriate
63	46		damage assessment rating, the chief appraiser may rely on
64	47		information provided by a county emergency management authority,
65	48		the Federal Emergency Management Agency, or any other source the
66	49		chief appraiser considers appropriate.
67		-	(g) The chief appraiser shall assign to an item of qualified
	50	+	(d) The chief appraiser shall assign to an item of qualified
68	51		property:
69	52		(1) a Level I damage assessment rating if the property
70	53		is at least 15 percent, but less than 30 percent, damaged, meaning
71	54		that the property suffered minimal damage and may continue to be
72	55		used as intended;
73	56		(2) a Level II damage assessment rating if the
74	57		property is at least 30 percent, but less than 60 percent, damaged,
75		-	which, for qualified property described by Subsection (a)(1)(B) or
76		-	~~(C),~~ means that the property has suffered only nonstructural
77		-	~~damage,~~ including nonstructural damage to the roof, walls,
78		-	~~foundation, or~~ mechanical components, and the waterline, if any, is
79		-	~~less than 18~~ inches above the floor;
	58	+	which, for qualified property described by Subsection (a)(1)(B),
	59	+	means that the property has suffered only nonstructural damage,
	60	+	including nonstructural damage to the roof, walls, foundation, or
	61	+	mechanical components, and the waterline, if any, is less than 18
	62	+	inches above the floor;
80	63		(3) a Level III damage assessment rating if the
81	64		property is at least 60 percent damaged but is not a total loss,
82		-	which, for qualified property described by Subsection (a)(1)(B) or
83		-	~~(C),~~ means that the property has suffered significant structural
84		-	~~damage~~ requiring extensive repair due to the failure or partial
85		-	~~failure of~~ structural elements, wall elements, or the foundation,
86		-	~~or the~~ waterline is at least 18 inches above the floor; or
	65	+	which, for qualified property described by Subsection (a)(1)(B),
	66	+	means that the property has suffered significant structural damage
	67	+	requiring extensive repair due to the failure or partial failure of
	68	+	structural elements, wall elements, or the foundation, or the
	69	+	waterline is at least 18 inches above the floor; or
87	70		(4) a Level IV damage assessment rating if the
88	71		property is a total loss, meaning that repair of the property is not
89	72		feasible.
90		-	(h) Subject to Subsection (i), the amount of the exemption
	73	+	(e) Subject to Subsection (f), the amount of the exemption
91	74		authorized by this section for an item of qualified property is
92	75		determined by multiplying the appraised value, determined for the
93	76		tax year in which the disaster occurred, of the property by:
94	77		(1) 15 percent, if the property is assigned a Level I
95	78		damage assessment rating;
96	79		(2) 30 percent, if the property is assigned a Level II
97	80		damage assessment rating;
98	81		(3) 60 percent, if the property is assigned a Level III
99	82		damage assessment rating; or
100	83		(4) 100 percent, if the property is assigned a Level IV
101	84		damage assessment rating.
102		-	(i) If a person qualifies for the exemption authorized by
	85	+	(f) If a person qualifies for the exemption authorized by
103	86		this section after the beginning of the tax year, the amount of the
104	87		exemption is calculated by multiplying the amount determined under
105		-	Subsection (h) by a fraction, the denominator of which is 365 and
	88	+	Subsection (e) by a fraction, the denominator of which is 365 and
106	89		the numerator of which is the number of days remaining in the tax
107	90		year after the day on which the governor first declares the area in
108	91		which the person's qualified property is located to be a disaster
109	92		area, including the day on which the governor makes the
110	93		declaration.
111		-	(j) If a person qualifies for the exemption authorized by
	94	+	(g) If a person qualifies for the exemption authorized by
112	95		this section after the amount of the tax due on the qualified
113	96		property is calculated and the effect of the qualification is to
114	97		reduce the amount of the tax due on the property, the assessor for
115		-	~~each applicable~~ taxing unit shall recalculate the amount of the tax
116		-	~~due on the~~ property and correct the tax roll. If the tax bill has
117		-	~~been mailed~~ and the tax on the property has not been paid, the
118		-	~~assessor shall~~ mail a corrected tax bill to the person in whose name
119		-	~~the property~~ is listed on the tax roll or to the person's authorized
120		-	~~agent. If~~ the tax on the property has been paid, the tax collector
121		-	~~for the~~ taxing unit shall refund to the person who paid the tax the
122		-	~~amount~~ by which the payment exceeded the tax due. No interest is
123		-	~~due on an~~ amount refunded under this subsection.
124		-	(k) The exemption authorized by this section expires as to
	98	+	the taxing unit shall recalculate the amount of the tax due on the
	99	+	property and correct the tax roll. If the tax bill has been mailed
	100	+	and the tax on the property has not been paid, the assessor shall
	101	+	mail a corrected tax bill to the person in whose name the property
	102	+	is listed on the tax roll or to the person's authorized agent. If
	103	+	the tax on the property has been paid, the tax collector for the
	104	+	taxing unit shall refund to the person who paid the tax the amount
	105	+	by which the payment exceeded the tax due. No interest is due on an
	106	+	amount refunded under this subsection.
	107	+	(h) The exemption authorized by this section expires as to
125	108		an item of qualified property on January 1 of the first tax year in
126	109		which the property is reappraised under Section 25.18.
127	110		SECTION 2. Section 11.42(e), Tax Code, is amended to read as
128	111		follows:
129	112		(e) A person who qualifies for an exemption under Section
130	113		11.131 or 11.35 after January 1 of a tax year may receive the
131	114		exemption for the applicable portion of that tax year immediately
132	115		on qualification for the exemption.
133	116		SECTION 3. Section 11.43, Tax Code, is amended by amending
134	117		Subsection (c) and adding Subsection (s) to read as follows:
135	118		(c) An exemption provided by Section 11.13, 11.131, 11.132,
136	119		11.133, 11.134, 11.17, 11.18, 11.182, 11.1827, 11.183, 11.19,
137	120		11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m), 11.231,
138	121		11.254, 11.27, 11.271, 11.29, 11.30, 11.31, [or] 11.315, or 11.35,
139	122		once allowed, need not be claimed in subsequent years, and except as
140	123		otherwise provided by Subsection (e), the exemption applies to the
141	124		property until it changes ownership or the person's qualification
142	125		for the exemption changes. However, except as provided by
143	126		Subsection (r), the chief appraiser may require a person allowed
144	127		one of the exemptions in a prior year to file a new application to
145	128		confirm the person's current qualification for the exemption by
146	129		delivering a written notice that a new application is required,
147	130		accompanied by an appropriate application form, to the person
148	131		previously allowed the exemption. If the person previously allowed
149	132		the exemption is 65 years of age or older, the chief appraiser may
150	133		not cancel the exemption due to the person's failure to file the new
151	134		application unless the chief appraiser complies with the
152	135		requirements of Subsection (q), if applicable.
153	136		(s) A person who qualifies for an exemption under Section
154		-	11.35~~(b)~~ must apply for the exemption not later than the 105th day
	137	+	11.35 must apply for the exemption not later than the 105th day
155	138		after the date the governor declares the area in which the person's
156		-	qualified property is located to be a disaster area. A person who
157		-	qualifies for an exemption under Section 11.35(c) must apply for
158		-	the exemption not later than the 45th day after the date the
159		-	governing body of the taxing unit adopts the exemption. The chief
160		-	appraiser may extend the deadlines prescribed by this subsection
161		-	for good cause shown.
	139	+	qualified property is located to be a disaster area, provided that
	140	+	the chief appraiser may extend the deadline for good cause shown.
162	141		SECTION 4. Section 11.45, Tax Code, is amended by adding
163	142		Subsection (e) to read as follows:
164	143		(e) If the chief appraiser approves, modifies, or denies an
165	144		application for an exemption under Section 11.35, the chief
166	145		appraiser shall deliver a written notice of the approval,
167	146		modification, or denial to the applicant not later than the fifth
168	147		day after the date the chief appraiser makes the determination. The
169	148		notice must include the damage assessment rating assigned by the
170	149		chief appraiser to each item of qualified property that is the
171	150		subject of the application and a brief explanation of the
172	151		procedures for protesting the chief appraiser's determination. The
173	152		notice required under this subsection is in lieu of any notice that
174	153		would otherwise be required under Subsection (d).
175	154		SECTION 5. Section 26.012(15), Tax Code, is amended to read
176	155		as follows:
177	156		(15) "Lost property levy" means the amount of taxes
178	157		levied in the preceding year on property value that was taxable in
179	158		the preceding year but is not taxable in the current year because
180	159		the property is exempt in the current year under a provision of this
181	160		code other than Section 11.251, [or] 11.253, or 11.35, the property
182	161		has qualified for special appraisal under Chapter 23 in the current
183	162		year, or the property is located in territory that has ceased to be
184	163		a part of the taxing unit since the preceding year.
185	164		SECTION 6. Section 41.03(a), Tax Code, is amended to read as
186	165		follows:
187	166		(a) A taxing unit is entitled to challenge before the
188	167		appraisal review board:
189	168		(1) the level of appraisals of any category of
190	169		property in the district or in any territory in the district, but
191	170		not the appraised value of a single taxpayer's property;
192	171		(2) an exclusion of property from the appraisal
193	172		records;
194	173		(3) a grant in whole or in part of a partial exemption,
195	174		other than an exemption under Section 11.35;
196	175		(4) a determination that land qualifies for appraisal
197	176		as provided by Subchapter C, D, E, or H, Chapter 23; or
198	177		(5) a failure to identify the taxing unit as one in
199	178		which a particular property is taxable.
200	179		SECTION 7. Section 41.41, Tax Code, is amended by adding
201	180		Subsection (c) to read as follows:
202	181		(c) Notwithstanding Subsection (a), a property owner is
203	182		entitled to protest before the appraisal review board only the
204	183		following actions of the chief appraiser in relation to an
205	184		exemption under Section 11.35:
206	185		(1) the modification or denial of an application for
207	186		an exemption under that section; or
208	187		(2) the determination of the appropriate damage
209	188		assessment rating for an item of qualified property under that
210	189		section.
211	190		SECTION 8. Section 41.44(a), Tax Code, is amended to read as
212	191		follows:
213	192		(a) Except as provided by Subsections (b), (c), (c-1), and
214	193		(c-2), to be entitled to a hearing and determination of a protest,
215	194		the property owner initiating the protest must file a written
216	195		notice of the protest with the appraisal review board having
217	196		authority to hear the matter protested:
218	197		(1) not later than May 15 or the 30th day after the
219	198		date that notice to the property owner was delivered to the property
220	199		owner as provided by Section 25.19, whichever is later;
221	200		(2) in the case of a protest of a change in the
222	201		appraisal records ordered as provided by Subchapter A of this
223	202		chapter or by Chapter 25, not later than the 30th day after the date
224	203		notice of the change is delivered to the property owner;
225	204		(3) in the case of a determination that a change in the
226	205		use of land appraised under Subchapter C, D, E, or H, Chapter 23,
227	206		has occurred, not later than the 30th day after the date the notice
228	207		of the determination is delivered to the property owner; [or]
229	208		(4) in the case of a determination of eligibility for a
230	209		refund under Section 23.1243, not later than the 30th day after the
231	210		date the notice of the determination is delivered to the property
232	211		owner; or
233	212		(5) in the case of a protest of the modification or
234	213		denial of an application for an exemption under Section 11.35, or
235	214		the determination of an appropriate damage assessment rating for an
236	215		item of qualified property under that section, not later than the
237	216		30th day after the date the property owner receives the notice
238	217		required under Section 11.45(e).
239	218		SECTION 9. Section 403.302(d), Government Code, is amended
240	219		to read as follows:
241	220		(d) For the purposes of this section, "taxable value" means
242	221		the market value of all taxable property less:
243	222		(1) the total dollar amount of any residence homestead
244	223		exemptions lawfully granted under Section 11.13(b) or (c), Tax
245	224		Code, in the year that is the subject of the study for each school
246	225		district;
247	226		(2) one-half of the total dollar amount of any
248	227		residence homestead exemptions granted under Section 11.13(n), Tax
249	228		Code, in the year that is the subject of the study for each school
250	229		district;
251	230		(3) the total dollar amount of any exemptions granted
252	231		before May 31, 1993, within a reinvestment zone under agreements
253	232		authorized by Chapter 312, Tax Code;
254	233		(4) subject to Subsection (e), the total dollar amount
255	234		of any captured appraised value of property that:
256	235		(A) is within a reinvestment zone created on or
257	236		before May 31, 1999, or is proposed to be included within the
258	237		boundaries of a reinvestment zone as the boundaries of the zone and
259	238		the proposed portion of tax increment paid into the tax increment
260	239		fund by a school district are described in a written notification
261	240		provided by the municipality or the board of directors of the zone
262	241		to the governing bodies of the other taxing units in the manner
263	242		provided by former Section 311.003(e), Tax Code, before May 31,
264	243		1999, and within the boundaries of the zone as those boundaries
265	244		existed on September 1, 1999, including subsequent improvements to
266	245		the property regardless of when made;
267	246		(B) generates taxes paid into a tax increment
268	247		fund created under Chapter 311, Tax Code, under a reinvestment zone
269	248		financing plan approved under Section 311.011(d), Tax Code, on or
270	249		before September 1, 1999; and
271	250		(C) is eligible for tax increment financing under
272	251		Chapter 311, Tax Code;
273	252		(5) the total dollar amount of any captured appraised
274	253		value of property that:
275	254		(A) is within a reinvestment zone:
276	255		(i) created on or before December 31, 2008,
277	256		by a municipality with a population of less than 18,000; and
278	257		(ii) the project plan for which includes
279	258		the alteration, remodeling, repair, or reconstruction of a
280	259		structure that is included on the National Register of Historic
281	260		Places and requires that a portion of the tax increment of the zone
282	261		be used for the improvement or construction of related facilities
283	262		or for affordable housing;
284	263		(B) generates school district taxes that are paid
285	264		into a tax increment fund created under Chapter 311, Tax Code; and
286	265		(C) is eligible for tax increment financing under
287	266		Chapter 311, Tax Code;
288	267		(6) the total dollar amount of any exemptions granted
289	268		under Section 11.251 or 11.253, Tax Code;
290	269		(7) the difference between the comptroller's estimate
291	270		of the market value and the productivity value of land that
292	271		qualifies for appraisal on the basis of its productive capacity,
293	272		except that the productivity value estimated by the comptroller may
294	273		not exceed the fair market value of the land;
295	274		(8) the portion of the appraised value of residence
296	275		homesteads of individuals who receive a tax limitation under
297	276		Section 11.26, Tax Code, on which school district taxes are not
298	277		imposed in the year that is the subject of the study, calculated as
299	278		if the residence homesteads were appraised at the full value
300	279		required by law;
301	280		(9) a portion of the market value of property not
302	281		otherwise fully taxable by the district at market value because of:
303	282		(A) action required by statute or the
304	283		constitution of this state, other than Section 11.311, Tax Code,
305	284		that, if the tax rate adopted by the district is applied to it,
306	285		produces an amount equal to the difference between the tax that the
307	286		district would have imposed on the property if the property were
308	287		fully taxable at market value and the tax that the district is
309	288		actually authorized to impose on the property, if this subsection
310	289		does not otherwise require that portion to be deducted; or
311	290		(B) action taken by the district under Subchapter
312	291		B or C, Chapter 313, Tax Code, before the expiration of the
313	292		subchapter;
314	293		(10) the market value of all tangible personal
315	294		property, other than manufactured homes, owned by a family or
316	295		individual and not held or used for the production of income;
317	296		(11) the appraised value of property the collection of
318	297		delinquent taxes on which is deferred under Section 33.06, Tax
319	298		Code;
320	299		(12) the portion of the appraised value of property
321	300		the collection of delinquent taxes on which is deferred under
322	301		Section 33.065, Tax Code; [and]
323	302		(13) the amount by which the market value of a
324	303		residence homestead to which Section 23.23, Tax Code, applies
325	304		exceeds the appraised value of that property as calculated under
326	305		that section; and
327	306		(14) the total dollar amount of any exemptions granted
328	307		under Section 11.35, Tax Code.
329	308		SECTION 10. Section 23.02, Tax Code, is repealed.
330	309		SECTION 11. Section 11.35, Tax Code, as added by this Act,
331	310		applies only to ad valorem taxes imposed for a tax year that begins
332	311		on or after the effective date of this Act.
333	312		SECTION 12. This Act takes effect January 1, 2020, but only
334	313		if the constitutional amendment proposed by the 86th Legislature,
335	314		Regular Session, 2019, authorizing the legislature to provide for a
336	315		temporary exemption from ad valorem taxation of a portion of the
337	316		appraised value of certain property damaged by a disaster is
338	317		approved by the voters. If that amendment is not approved by the
339	318		voters, this Act has no effect.
340		-	______________________________ ______________________________
341		-	President of the Senate Speaker of the House
342		-	I certify that H.B. No. 492 was passed by the House on April
343		-	17, 2019, by the following vote: Yeas 137, Nays 0, 2 present, not
344		-	voting; that the House refused to concur in Senate amendments to
345		-	H.B. No. 492 on May 23, 2019, and requested the appointment of a
346		-	conference committee to consider the differences between the two
347		-	houses; and that the House adopted the conference committee report
348		-	on H.B. No. 492 on May 26, 2019, by the following vote: Yeas 146,
349		-	Nays 0, 1 present, not voting.
350		-	______________________________
351		-	Chief Clerk of the House
352		-	I certify that H.B. No. 492 was passed by the Senate, with
353		-	amendments, on May 22, 2019, by the following vote: Yeas 31, Nays
354		-	0; at the request of the House, the Senate appointed a conference
355		-	committee to consider the differences between the two houses; and
356		-	that the Senate adopted the conference committee report on H.B. No.
357		-	492 on May 26, 2019, by the following vote: Yeas 31, Nays 0.
358		-	______________________________
359		-	Secretary of the Senate
360		-	APPROVED: __________________
361		-	Date
362		-	__________________
363		-	Governor
	319	+	* * * * *