Texas 2019 - 86th Regular

Texas House Bill HB493 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	86R3749 SMT-F
2	2	By: Shine H.B. No. 493
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to a temporary local option exemption from ad valorem
8	8	taxation of a portion of the appraised value of certain property
9	9	damaged by a disaster and reimbursement of a taxing unit for refunds
10	10	the taxing unit pays to taxpayers as a result of the exemption.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by
13	13	adding Section 11.35 to read as follows:
14	14	Sec. 11.35. TEMPORARY EXEMPTION FOR QUALIFIED PROPERTY
15	15	DAMAGED BY DISASTER. (a) In this section, "qualified property"
16	16	means property that:
17	17	(1) consists of:
18	18	(A) tangible personal property used for the
19	19	production of income; or
20	20	(B) an improvement to real property;
21	21	(2) is located in an area declared by the governor to
22	22	be a disaster area following a disaster;
23	23	(3) is at least 15 percent damaged by the disaster, as
24	24	determined by the chief appraiser under this section; and
25	25	(4) for property described by Subdivision (1)(A), is
26	26	the subject of a rendition statement or property report filed by the
27	27	property owner under Section 22.01 that demonstrates that the
28	28	property had taxable situs in the disaster area for the tax year in
29	29	which the disaster occurred.
30	30	(b) A person is entitled to an exemption from taxation by a
31	31	taxing unit of a portion of the appraised value of qualified
32	32	property that the person owns if the exemption is adopted by the
33	33	governing body of the taxing unit in the manner provided by law for
34	34	official action by the body.
35	35	(c) An exemption adopted by the governing body of a taxing
36	36	unit under this section must:
37	37	(1) specify the disaster to which the exemption
38	38	pertains; and
39	39	(2) be adopted not later than the 60th day after the
40	40	date the governor first declares territory in the taxing unit to be
41	41	a disaster area as a result of the disaster.
42	42	(d) A taxing unit the governing body of which adopts an
43	43	exemption under this section shall, not later than the seventh day
44	44	after the date the governing body adopts the exemption, notify the
45	45	chief appraiser of each appraisal district in which the taxing unit
46	46	participates, the assessor for the taxing unit, and the comptroller
47	47	of the adoption of the exemption.
48	48	(e) On receipt of an application for the exemption
49	49	authorized by this section, the chief appraiser shall determine
50	50	whether any item of qualified property that is the subject of the
51	51	application is at least 15 percent damaged by the disaster and
52	52	assign to each such item of qualified property a damage assessment
53	53	rating of Level I, Level II, Level III, or Level IV, as appropriate,
54	54	as provided by Subsection (f). In determining the appropriate
55	55	damage assessment rating, the chief appraiser may rely on
56	56	information provided by a county emergency management authority,
57	57	the Federal Emergency Management Agency, or any other source the
58	58	chief appraiser considers appropriate.
59	59	(f) The chief appraiser shall assign to an item of qualified
60	60	property:
61	61	(1) a Level I damage assessment rating if the property
62	62	is at least 15 percent, but less than 30 percent, damaged, meaning
63	63	that the property suffered minimal damage and may continue to be
64	64	used as intended;
65	65	(2) a Level II damage assessment rating if the
66	66	property is at least 30 percent, but less than 60 percent, damaged,
67	67	which, for qualified property described by Subsection (a)(1)(B),
68	68	means that the property has suffered only nonstructural damage,
69	69	including nonstructural damage to the roof, walls, foundation, or
70	70	mechanical components, and the waterline, if any, is less than 18
71	71	inches above the floor;
72	72	(3) a Level III damage assessment rating if the
73	73	property is at least 60 percent damaged but is not a total loss,
74	74	which, for qualified property described by Subsection (a)(1)(B),
75	75	means that the property has suffered significant structural damage
76	76	requiring extensive repair due to the failure or partial failure of
77	77	structural elements, wall elements, or the foundation, or the
78	78	waterline is at least 18 inches above the floor; or
79	79	(4) a Level IV damage assessment rating if the
80	80	property is a total loss, meaning that repair of the property is not
81	81	feasible.
82	82	(g) Subject to Subsection (h), the amount of the exemption
83	83	authorized by this section for an item of qualified property is
84	84	determined by multiplying the appraised value, determined for the
85	85	tax year in which the disaster occurred, of the property by:
86	86	(1) 15 percent, if the property is assigned a Level I
87	87	damage assessment rating;
88	88	(2) 30 percent, if the property is assigned a Level II
89	89	damage assessment rating;
90	90	(3) 60 percent, if the property is assigned a Level III
91	91	damage assessment rating; or
92	92	(4) 100 percent, if the property is assigned a Level IV
93	93	damage assessment rating.
94	94	(h) If a person qualifies for the exemption authorized by
95	95	this section after the beginning of the tax year, the amount of the
96	96	exemption is calculated by multiplying the amount determined under
97	97	Subsection (g) by a fraction, the denominator of which is 365 and
98	98	the numerator of which is the number of days remaining in the tax
99	99	year after the day on which the governor first declares the area in
100	100	which the person's qualified property is located to be a disaster
101	101	area, including the day on which the governor makes the
102	102	declaration.
103	103	(i) If a person qualifies for the exemption authorized by
104	104	this section after the amount of the tax due on the qualified
105	105	property is calculated and the effect of the qualification is to
106	106	reduce the amount of the tax due on the property, the assessor for
107	107	each taxing unit that has adopted the exemption shall recalculate
108	108	the amount of the tax due on the property and correct the tax roll.
109	109	If the tax bill has been mailed and the tax on the property has not
110	110	been paid, the assessor shall mail a corrected tax bill to the
111	111	person in whose name the property is listed on the tax roll or to the
112	112	person's authorized agent. If the tax on the property has been
113	113	paid, the tax collector for the taxing unit shall refund to the
114	114	person who paid the tax the amount by which the payment exceeded the
115	115	tax due. No interest is due on an amount refunded under this
116	116	subsection.
117	117	(j) The exemption authorized by this section expires as to
118	118	an item of qualified property on January 1 of the first tax year in
119	119	which the property is reappraised under Section 25.18.
120	120	SECTION 2. Section 11.42(e), Tax Code, is amended to read as
121	121	follows:
122	122	(e) A person who qualifies for an exemption under Section
123	123	11.131 or 11.35 after January 1 of a tax year may receive the
124	124	exemption for the applicable portion of that tax year immediately
125	125	on qualification for the exemption.
126	126	SECTION 3. Section 11.43, Tax Code, is amended by amending
127	127	Subsection (c) and adding Subsection (s) to read as follows:
128	128	(c) An exemption provided by Section 11.13, 11.131, 11.132,
129	129	11.133, 11.134, 11.17, 11.18, 11.182, 11.1827, 11.183, 11.19,
130	130	11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m), 11.231,
131	131	11.254, 11.27, 11.271, 11.29, 11.30, 11.31, [or] 11.315, or 11.35,
132	132	once allowed, need not be claimed in subsequent years, and except as
133	133	otherwise provided by Subsection (e), the exemption applies to the
134	134	property until it changes ownership or the person's qualification
135	135	for the exemption changes. However, except as provided by
136	136	Subsection (r), the chief appraiser may require a person allowed
137	137	one of the exemptions in a prior year to file a new application to
138	138	confirm the person's current qualification for the exemption by
139	139	delivering a written notice that a new application is required,
140	140	accompanied by an appropriate application form, to the person
141	141	previously allowed the exemption. If the person previously allowed
142	142	the exemption is 65 years of age or older, the chief appraiser may
143	143	not cancel the exemption due to the person's failure to file the new
144	144	application unless the chief appraiser complies with the
145	145	requirements of Subsection (q), if applicable.
146	146	(s) A person who qualifies for an exemption under Section
147	147	11.35 must apply for the exemption not later than the 45th day after
148	148	the date the governing body of the taxing unit adopts the exemption,
149	149	provided that the chief appraiser may extend the deadline for good
150	150	cause shown.
151	151	SECTION 4. Section 11.45, Tax Code, is amended by adding
152	152	Subsection (e) to read as follows:
153	153	(e) If the chief appraiser approves, modifies, or denies an
154	154	application for an exemption under Section 11.35, the chief
155	155	appraiser shall deliver a written notice of the approval,
156	156	modification, or denial to the applicant not later than the fifth
157	157	day after the date the chief appraiser makes the determination. The
158	158	notice must include the damage assessment rating assigned by the
159	159	chief appraiser to each item of qualified property that is the
160	160	subject of the application and a brief explanation of the
161	161	procedures for protesting the chief appraiser's determination. The
162	162	notice required under this subsection is in lieu of any notice that
163	163	would otherwise be required under Subsection (d).
164	164	SECTION 5. Section 26.012(15), Tax Code, is amended to read
165	165	as follows:
166	166	(15) "Lost property levy" means the amount of taxes
167	167	levied in the preceding year on property value that was taxable in
168	168	the preceding year but is not taxable in the current year because
169	169	the property is exempt in the current year under a provision of this
170	170	code other than Section 11.251, [or] 11.253, or 11.35, the property
171	171	has qualified for special appraisal under Chapter 23 in the current
172	172	year, or the property is located in territory that has ceased to be
173	173	a part of the taxing unit since the preceding year.
174	174	SECTION 6. Section 41.03(a), Tax Code, is amended to read as
175	175	follows:
176	176	(a) A taxing unit is entitled to challenge before the
177	177	appraisal review board:
178	178	(1) the level of appraisals of any category of
179	179	property in the district or in any territory in the district, but
180	180	not the appraised value of a single taxpayer's property;
181	181	(2) an exclusion of property from the appraisal
182	182	records;
183	183	(3) a grant in whole or in part of a partial exemption,
184	184	other than an exemption under Section 11.35;
185	185	(4) a determination that land qualifies for appraisal
186	186	as provided by Subchapter C, D, E, or H, Chapter 23; or
187	187	(5) a failure to identify the taxing unit as one in
188	188	which a particular property is taxable.
189	189	SECTION 7. Section 41.41, Tax Code, is amended by adding
190	190	Subsection (c) to read as follows:
191	191	(c) Notwithstanding Subsection (a), a property owner is
192	192	entitled to protest before the appraisal review board only the
193	193	following actions of the chief appraiser in relation to an
194	194	exemption under Section 11.35:
195	195	(1) the modification or denial of an application for
196	196	an exemption under that section; or
197	197	(2) the determination of the appropriate damage
198	198	assessment rating for an item of qualified property under that
199	199	section.
200	200	SECTION 8. Section 41.44(a), Tax Code, is amended to read as
201	201	follows:
202	202	(a) Except as provided by Subsections (b), (c), (c-1), and
203	203	(c-2), to be entitled to a hearing and determination of a protest,
204	204	the property owner initiating the protest must file a written
205	205	notice of the protest with the appraisal review board having
206	206	authority to hear the matter protested:
207	207	(1) not later than May 15 or the 30th day after the
208	208	date that notice to the property owner was delivered to the property
209	209	owner as provided by Section 25.19, whichever is later;
210	210	(2) in the case of a protest of a change in the
211	211	appraisal records ordered as provided by Subchapter A of this
212	212	chapter or by Chapter 25, not later than the 30th day after the date
213	213	notice of the change is delivered to the property owner;
214	214	(3) in the case of a determination that a change in the
215	215	use of land appraised under Subchapter C, D, E, or H, Chapter 23,
216	216	has occurred, not later than the 30th day after the date the notice
217	217	of the determination is delivered to the property owner; [or]
218	218	(4) in the case of a determination of eligibility for a
219	219	refund under Section 23.1243, not later than the 30th day after the
220	220	date the notice of the determination is delivered to the property
221	221	owner; or
222	222	(5) in the case of a protest of the modification or
223	223	denial of an application for an exemption under Section 11.35, or
224	224	the determination of an appropriate damage assessment rating for an
225	225	item of qualified property under that section, not later than the
226	226	30th day after the date the property owner receives the notice
227	227	required under Section 11.45(e).
228	228	SECTION 9. Section 403.302(d), Government Code, is amended
229	229	to read as follows:
230	230	(d) For the purposes of this section, "taxable value" means
231	231	the market value of all taxable property less:
232	232	(1) the total dollar amount of any residence homestead
233	233	exemptions lawfully granted under Section 11.13(b) or (c), Tax
234	234	Code, in the year that is the subject of the study for each school
235	235	district;
236	236	(2) one-half of the total dollar amount of any
237	237	residence homestead exemptions granted under Section 11.13(n), Tax
238	238	Code, in the year that is the subject of the study for each school
239	239	district;
240	240	(3) the total dollar amount of any exemptions granted
241	241	before May 31, 1993, within a reinvestment zone under agreements
242	242	authorized by Chapter 312, Tax Code;
243	243	(4) subject to Subsection (e), the total dollar amount
244	244	of any captured appraised value of property that:
245	245	(A) is within a reinvestment zone created on or
246	246	before May 31, 1999, or is proposed to be included within the
247	247	boundaries of a reinvestment zone as the boundaries of the zone and
248	248	the proposed portion of tax increment paid into the tax increment
249	249	fund by a school district are described in a written notification
250	250	provided by the municipality or the board of directors of the zone
251	251	to the governing bodies of the other taxing units in the manner
252	252	provided by former Section 311.003(e), Tax Code, before May 31,
253	253	1999, and within the boundaries of the zone as those boundaries
254	254	existed on September 1, 1999, including subsequent improvements to
255	255	the property regardless of when made;
256	256	(B) generates taxes paid into a tax increment
257	257	fund created under Chapter 311, Tax Code, under a reinvestment zone
258	258	financing plan approved under Section 311.011(d), Tax Code, on or
259	259	before September 1, 1999; and
260	260	(C) is eligible for tax increment financing under
261	261	Chapter 311, Tax Code;
262	262	(5) the total dollar amount of any captured appraised
263	263	value of property that:
264	264	(A) is within a reinvestment zone:
265	265	(i) created on or before December 31, 2008,
266	266	by a municipality with a population of less than 18,000; and
267	267	(ii) the project plan for which includes
268	268	the alteration, remodeling, repair, or reconstruction of a
269	269	structure that is included on the National Register of Historic
270	270	Places and requires that a portion of the tax increment of the zone
271	271	be used for the improvement or construction of related facilities
272	272	or for affordable housing;
273	273	(B) generates school district taxes that are paid
274	274	into a tax increment fund created under Chapter 311, Tax Code; and
275	275	(C) is eligible for tax increment financing under
276	276	Chapter 311, Tax Code;
277	277	(6) the total dollar amount of any exemptions granted
278	278	under Section 11.251 or 11.253, Tax Code;
279	279	(7) the difference between the comptroller's estimate
280	280	of the market value and the productivity value of land that
281	281	qualifies for appraisal on the basis of its productive capacity,
282	282	except that the productivity value estimated by the comptroller may
283	283	not exceed the fair market value of the land;
284	284	(8) the portion of the appraised value of residence
285	285	homesteads of individuals who receive a tax limitation under
286	286	Section 11.26, Tax Code, on which school district taxes are not
287	287	imposed in the year that is the subject of the study, calculated as
288	288	if the residence homesteads were appraised at the full value
289	289	required by law;
290	290	(9) a portion of the market value of property not
291	291	otherwise fully taxable by the district at market value because of:
292	292	(A) action required by statute or the
293	293	constitution of this state, other than Section 11.311, Tax Code,
294	294	that, if the tax rate adopted by the district is applied to it,
295	295	produces an amount equal to the difference between the tax that the
296	296	district would have imposed on the property if the property were
297	297	fully taxable at market value and the tax that the district is
298	298	actually authorized to impose on the property, if this subsection
299	299	does not otherwise require that portion to be deducted; or
300	300	(B) action taken by the district under Subchapter
301	301	B or C, Chapter 313, Tax Code, before the expiration of the
302	302	subchapter;
303	303	(10) the market value of all tangible personal
304	304	property, other than manufactured homes, owned by a family or
305	305	individual and not held or used for the production of income;
306	306	(11) the appraised value of property the collection of
307	307	delinquent taxes on which is deferred under Section 33.06, Tax
308	308	Code;
309	309	(12) the portion of the appraised value of property
310	310	the collection of delinquent taxes on which is deferred under
311	311	Section 33.065, Tax Code; [and]
312	312	(13) the amount by which the market value of a
313	313	residence homestead to which Section 23.23, Tax Code, applies
314	314	exceeds the appraised value of that property as calculated under
315	315	that section; and
316	316	(14) the total dollar amount of any exemptions granted
317	317	under Section 11.35, Tax Code.
318	318	SECTION 10. Chapter 140, Local Government Code, is amended
319	319	by adding Section 140.012 to read as follows:
320	320	Sec. 140.012. DISASTER EXEMPTION ASSISTANCE PAYMENTS. (a)
321	321	In this section, "taxing unit" and "tax year" have the meanings
322	322	assigned by Section 1.04, Tax Code.
323	323	(b) A taxing unit is entitled to a disaster exemption
324	324	assistance payment from the state if the taxing unit pays a refund
325	325	to a person under Section 11.35, Tax Code, as a result of an
326	326	exemption granted under that section.
327	327	(c) The amount of the disaster exemption assistance payment
328	328	is calculated by adding the total amount of each refund the taxing
329	329	unit pays under Section 11.35, Tax Code, in the tax year for which
330	330	the disaster exemption assistance payment is sought.
331	331	(d) Not later than April 1 of the year following the tax year
332	332	for which the disaster exemption assistance payment is sought, the
333	333	taxing unit may submit an application to the comptroller to receive
334	334	a disaster exemption assistance payment for that tax year. The
335	335	application must be made on a form prescribed by the comptroller.
336	336	(e) A taxing unit that does not submit an application to the
337	337	comptroller by the date prescribed by Subsection (d) is not
338	338	entitled to a disaster exemption assistance payment for the tax
339	339	year for which the deadline applies.
340	340	(f) The comptroller shall review each application by a
341	341	taxing unit to determine whether the taxing unit is entitled to a
342	342	disaster exemption assistance payment. If the comptroller
343	343	determines that the taxing unit is entitled to the payment, the
344	344	comptroller shall remit the payment from available funds to the
345	345	taxing unit not later than the 30th day after the date the
346	346	application for the payment is made.
347	347	(g) The comptroller may adopt rules to implement and
348	348	administer this section.
349	349	SECTION 11. Section 23.02, Tax Code, is repealed.
350	350	SECTION 12. Section 11.35, Tax Code, as added by this Act,
351	351	applies only to ad valorem taxes imposed for a tax year that begins
352	352	on or after the effective date of this Act.
353	353	SECTION 13. This Act takes effect January 1, 2020, but only
354	354	if the constitutional amendment proposed by the 86th Legislature,
355	355	Regular Session, 2019, authorizing the legislature to provide for a
356	356	temporary local option exemption from ad valorem taxation of a
357	357	portion of the appraised value of certain property damaged by a
358	358	disaster and to provide for reimbursement of a political
359	359	subdivision by the state for refunds the political subdivision pays
360	360	to taxpayers as a result of the exemption is approved by the voters.
361	361	If that amendment is not approved by the voters, this Act has no
362	362	effect.