Texas 2019 - 86th Regular

Texas Senate Bill SB1322 Compare Versions

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

Old	New	Differences
1	1	86R3205 SMT-F
2	2	By: Taylor S.B. No. 1322
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.
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 if the exemption is adopted by the
32	32	governing body of the taxing unit in the manner provided by law for
33	33	official action by the body.
34	34	(c) An exemption adopted by the governing body of a taxing
35	35	unit under this section must:
36	36	(1) specify the disaster to which the exemption
37	37	pertains; and
38	38	(2) be adopted not later than the 60th day after the
39	39	date the governor first declares territory in the taxing unit to be
40	40	a disaster area as a result of the disaster.
41	41	(d) A taxing unit the governing body of which adopts an
42	42	exemption under this section shall, not later than the seventh day
43	43	after the date the governing body adopts the exemption, notify the
44	44	chief appraiser of each appraisal district in which the taxing unit
45	45	participates, the assessor for the taxing unit, and the comptroller
46	46	of the adoption of the exemption.
47	47	(e) On receipt of an application for the exemption
48	48	authorized by this section, the chief appraiser shall determine
49	49	whether any item of qualified property that is the subject of the
50	50	application is at least 15 percent damaged by the disaster and
51	51	assign to each such item of qualified property a damage assessment
52	52	rating of Level I, Level II, Level III, or Level IV, as appropriate,
53	53	as provided by Subsection (f). In determining the appropriate
54	54	damage assessment rating, the chief appraiser may rely on
55	55	information provided by a county emergency management authority,
56	56	the Federal Emergency Management Agency, or any other source the
57	57	chief appraiser considers appropriate.
58	58	(f) The chief appraiser shall assign to an item of qualified
59	59	property:
60	60	(1) a Level I damage assessment rating if the property
61	61	is at least 15 percent, but less than 30 percent, damaged, meaning
62	62	that the property suffered minimal damage and may continue to be
63	63	used as intended;
64	64	(2) a Level II damage assessment rating if the
65	65	property is at least 30 percent, but less than 60 percent, damaged,
66	66	which, for qualified property described by Subsection (a)(1)(B),
67	67	means that the property has suffered only nonstructural damage,
68	68	including nonstructural damage to the roof, walls, foundation, or
69	69	mechanical components, and the waterline, if any, is less than 18
70	70	inches above the floor;
71	71	(3) a Level III damage assessment rating if the
72	72	property is at least 60 percent damaged but is not a total loss,
73	73	which, for qualified property described by Subsection (a)(1)(B),
74	74	means that the property has suffered significant structural damage
75	75	requiring extensive repair due to the failure or partial failure of
76	76	structural elements, wall elements, or the foundation, or the
77	77	waterline is at least 18 inches above the floor; or
78	78	(4) a Level IV damage assessment rating if the
79	79	property is a total loss, meaning that repair of the property is not
80	80	feasible.
81	81	(g) Subject to Subsection (h), the amount of the exemption
82	82	authorized by this section for an item of qualified property is
83	83	determined by multiplying the appraised value, determined for the
84	84	tax year in which the disaster occurred, of the property by:
85	85	(1) 15 percent, if the property is assigned a Level I
86	86	damage assessment rating;
87	87	(2) 30 percent, if the property is assigned a Level II
88	88	damage assessment rating;
89	89	(3) 60 percent, if the property is assigned a Level III
90	90	damage assessment rating; or
91	91	(4) 100 percent, if the property is assigned a Level IV
92	92	damage assessment rating.
93	93	(h) If a person qualifies for the exemption authorized by
94	94	this section after the beginning of the tax year, the amount of the
95	95	exemption is calculated by multiplying the amount determined under
96	96	Subsection (g) by a fraction, the denominator of which is 365 and
97	97	the numerator of which is the number of days remaining in the tax
98	98	year after the day on which the governor first declares the area in
99	99	which the person's qualified property is located to be a disaster
100	100	area, including the day on which the governor makes the
101	101	declaration.
102	102	(i) If a person qualifies for the exemption authorized by
103	103	this section after the amount of the tax due on the qualified
104	104	property is calculated and the effect of the qualification is to
105	105	reduce the amount of the tax due on the property, the assessor for
106	106	each taxing unit that has adopted the exemption shall recalculate
107	107	the amount of the tax due on the property and correct the tax roll.
108	108	If the tax bill has been mailed and the tax on the property has not
109	109	been paid, the assessor shall mail a corrected tax bill to the
110	110	person in whose name the property is listed on the tax roll or to the
111	111	person's authorized agent. If the tax on the property has been
112	112	paid, the tax collector for the taxing unit shall refund to the
113	113	person who paid the tax the amount by which the payment exceeded the
114	114	tax due. No interest is due on an amount refunded under this
115	115	subsection.
116	116	(j) The exemption authorized by this section expires as to
117	117	an item of qualified property on January 1 of the first tax year in
118	118	which the property is reappraised under Section 25.18.
119	119	SECTION 2. Section 11.42(e), Tax Code, is amended to read as
120	120	follows:
121	121	(e) A person who qualifies for an exemption under Section
122	122	11.131 or 11.35 after January 1 of a tax year may receive the
123	123	exemption for the applicable portion of that tax year immediately
124	124	on qualification for the exemption.
125	125	SECTION 3. Section 11.43, Tax Code, is amended by amending
126	126	Subsection (c) and adding Subsection (s) to read as follows:
127	127	(c) An exemption provided by Section 11.13, 11.131, 11.132,
128	128	11.133, 11.134, 11.17, 11.18, 11.182, 11.1827, 11.183, 11.19,
129	129	11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m), 11.231,
130	130	11.254, 11.27, 11.271, 11.29, 11.30, 11.31, [or] 11.315, or 11.35,
131	131	once allowed, need not be claimed in subsequent years, and except as
132	132	otherwise provided by Subsection (e), the exemption applies to the
133	133	property until it changes ownership or the person's qualification
134	134	for the exemption changes. However, except as provided by
135	135	Subsection (r), the chief appraiser may require a person allowed
136	136	one of the exemptions in a prior year to file a new application to
137	137	confirm the person's current qualification for the exemption by
138	138	delivering a written notice that a new application is required,
139	139	accompanied by an appropriate application form, to the person
140	140	previously allowed the exemption. If the person previously allowed
141	141	the exemption is 65 years of age or older, the chief appraiser may
142	142	not cancel the exemption due to the person's failure to file the new
143	143	application unless the chief appraiser complies with the
144	144	requirements of Subsection (q), if applicable.
145	145	(s) A person who qualifies for an exemption under Section
146	146	11.35 must apply for the exemption not later than the 45th day after
147	147	the date the governing body of the taxing unit adopts the exemption,
148	148	provided that the chief appraiser may extend the deadline for good
149	149	cause shown.
150	150	SECTION 4. Section 11.45, Tax Code, is amended by adding
151	151	Subsection (e) to read as follows:
152	152	(e) If the chief appraiser approves, modifies, or denies an
153	153	application for an exemption under Section 11.35, the chief
154	154	appraiser shall deliver a written notice of the approval,
155	155	modification, or denial to the applicant not later than the fifth
156	156	day after the date the chief appraiser makes the determination. The
157	157	notice must include the damage assessment rating assigned by the
158	158	chief appraiser to each item of qualified property that is the
159	159	subject of the application and a brief explanation of the
160	160	procedures for protesting the chief appraiser's determination. The
161	161	notice required under this subsection is in lieu of any notice that
162	162	would otherwise be required under Subsection (d).
163	163	SECTION 5. Section 26.012(15), Tax Code, is amended to read
164	164	as follows:
165	165	(15) "Lost property levy" means the amount of taxes
166	166	levied in the preceding year on property value that was taxable in
167	167	the preceding year but is not taxable in the current year because
168	168	the property is exempt in the current year under a provision of this
169	169	code other than Section 11.251, [or] 11.253, or 11.35, the property
170	170	has qualified for special appraisal under Chapter 23 in the current
171	171	year, or the property is located in territory that has ceased to be
172	172	a part of the taxing unit since the preceding year.
173	173	SECTION 6. Section 41.03(a), Tax Code, is amended to read as
174	174	follows:
175	175	(a) A taxing unit is entitled to challenge before the
176	176	appraisal review board:
177	177	(1) the level of appraisals of any category of
178	178	property in the district or in any territory in the district, but
179	179	not the appraised value of a single taxpayer's property;
180	180	(2) an exclusion of property from the appraisal
181	181	records;
182	182	(3) a grant in whole or in part of a partial exemption,
183	183	other than an exemption under Section 11.35;
184	184	(4) a determination that land qualifies for appraisal
185	185	as provided by Subchapter C, D, E, or H, Chapter 23; or
186	186	(5) a failure to identify the taxing unit as one in
187	187	which a particular property is taxable.
188	188	SECTION 7. Section 41.41, Tax Code, is amended by adding
189	189	Subsection (c) to read as follows:
190	190	(c) Notwithstanding Subsection (a), a property owner is
191	191	entitled to protest before the appraisal review board only the
192	192	following actions of the chief appraiser in relation to an
193	193	exemption under Section 11.35:
194	194	(1) the modification or denial of an application for
195	195	an exemption under that section; or
196	196	(2) the determination of the appropriate damage
197	197	assessment rating for an item of qualified property under that
198	198	section.
199	199	SECTION 8. Section 41.44(a), Tax Code, is amended to read as
200	200	follows:
201	201	(a) Except as provided by Subsections (b), (c), (c-1), and
202	202	(c-2), to be entitled to a hearing and determination of a protest,
203	203	the property owner initiating the protest must file a written
204	204	notice of the protest with the appraisal review board having
205	205	authority to hear the matter protested:
206	206	(1) not later than May 15 or the 30th day after the
207	207	date that notice to the property owner was delivered to the property
208	208	owner as provided by Section 25.19, whichever is later;
209	209	(2) in the case of a protest of a change in the
210	210	appraisal records ordered as provided by Subchapter A of this
211	211	chapter or by Chapter 25, not later than the 30th day after the date
212	212	notice of the change is delivered to the property owner;
213	213	(3) in the case of a determination that a change in the
214	214	use of land appraised under Subchapter C, D, E, or H, Chapter 23,
215	215	has occurred, not later than the 30th day after the date the notice
216	216	of the determination is delivered to the property owner; [or]
217	217	(4) in the case of a determination of eligibility for a
218	218	refund under Section 23.1243, not later than the 30th day after the
219	219	date the notice of the determination is delivered to the property
220	220	owner; or
221	221	(5) in the case of a protest of the modification or
222	222	denial of an application for an exemption under Section 11.35, or
223	223	the determination of an appropriate damage assessment rating for an
224	224	item of qualified property under that section, not later than the
225	225	30th day after the date the property owner receives the notice
226	226	required under Section 11.45(e).
227	227	SECTION 9. Section 403.302(d), Government Code, is amended
228	228	to read as follows:
229	229	(d) For the purposes of this section, "taxable value" means
230	230	the market value of all taxable property less:
231	231	(1) the total dollar amount of any residence homestead
232	232	exemptions lawfully granted under Section 11.13(b) or (c), Tax
233	233	Code, in the year that is the subject of the study for each school
234	234	district;
235	235	(2) one-half of the total dollar amount of any
236	236	residence homestead exemptions granted under Section 11.13(n), Tax
237	237	Code, in the year that is the subject of the study for each school
238	238	district;
239	239	(3) the total dollar amount of any exemptions granted
240	240	before May 31, 1993, within a reinvestment zone under agreements
241	241	authorized by Chapter 312, Tax Code;
242	242	(4) subject to Subsection (e), the total dollar amount
243	243	of any captured appraised value of property that:
244	244	(A) is within a reinvestment zone created on or
245	245	before May 31, 1999, or is proposed to be included within the
246	246	boundaries of a reinvestment zone as the boundaries of the zone and
247	247	the proposed portion of tax increment paid into the tax increment
248	248	fund by a school district are described in a written notification
249	249	provided by the municipality or the board of directors of the zone
250	250	to the governing bodies of the other taxing units in the manner
251	251	provided by former Section 311.003(e), Tax Code, before May 31,
252	252	1999, and within the boundaries of the zone as those boundaries
253	253	existed on September 1, 1999, including subsequent improvements to
254	254	the property regardless of when made;
255	255	(B) generates taxes paid into a tax increment
256	256	fund created under Chapter 311, Tax Code, under a reinvestment zone
257	257	financing plan approved under Section 311.011(d), Tax Code, on or
258	258	before September 1, 1999; and
259	259	(C) is eligible for tax increment financing under
260	260	Chapter 311, Tax Code;
261	261	(5) the total dollar amount of any captured appraised
262	262	value of property that:
263	263	(A) is within a reinvestment zone:
264	264	(i) created on or before December 31, 2008,
265	265	by a municipality with a population of less than 18,000; and
266	266	(ii) the project plan for which includes
267	267	the alteration, remodeling, repair, or reconstruction of a
268	268	structure that is included on the National Register of Historic
269	269	Places and requires that a portion of the tax increment of the zone
270	270	be used for the improvement or construction of related facilities
271	271	or for affordable housing;
272	272	(B) generates school district taxes that are paid
273	273	into a tax increment fund created under Chapter 311, Tax Code; and
274	274	(C) is eligible for tax increment financing under
275	275	Chapter 311, Tax Code;
276	276	(6) the total dollar amount of any exemptions granted
277	277	under Section 11.251 or 11.253, Tax Code;
278	278	(7) the difference between the comptroller's estimate
279	279	of the market value and the productivity value of land that
280	280	qualifies for appraisal on the basis of its productive capacity,
281	281	except that the productivity value estimated by the comptroller may
282	282	not exceed the fair market value of the land;
283	283	(8) the portion of the appraised value of residence
284	284	homesteads of individuals who receive a tax limitation under
285	285	Section 11.26, Tax Code, on which school district taxes are not
286	286	imposed in the year that is the subject of the study, calculated as
287	287	if the residence homesteads were appraised at the full value
288	288	required by law;
289	289	(9) a portion of the market value of property not
290	290	otherwise fully taxable by the district at market value because of:
291	291	(A) action required by statute or the
292	292	constitution of this state, other than Section 11.311, Tax Code,
293	293	that, if the tax rate adopted by the district is applied to it,
294	294	produces an amount equal to the difference between the tax that the
295	295	district would have imposed on the property if the property were
296	296	fully taxable at market value and the tax that the district is
297	297	actually authorized to impose on the property, if this subsection
298	298	does not otherwise require that portion to be deducted; or
299	299	(B) action taken by the district under Subchapter
300	300	B or C, Chapter 313, Tax Code, before the expiration of the
301	301	subchapter;
302	302	(10) the market value of all tangible personal
303	303	property, other than manufactured homes, owned by a family or
304	304	individual and not held or used for the production of income;
305	305	(11) the appraised value of property the collection of
306	306	delinquent taxes on which is deferred under Section 33.06, Tax
307	307	Code;
308	308	(12) the portion of the appraised value of property
309	309	the collection of delinquent taxes on which is deferred under
310	310	Section 33.065, Tax Code; [and]
311	311	(13) the amount by which the market value of a
312	312	residence homestead to which Section 23.23, Tax Code, applies
313	313	exceeds the appraised value of that property as calculated under
314	314	that section; and
315	315	(14) the total dollar amount of any exemptions granted
316	316	under Section 11.35, Tax Code.
317	317	SECTION 10. Section 23.02, Tax Code, is repealed.
318	318	SECTION 11. Section 11.35, Tax Code, as added by this Act,
319	319	applies only to ad valorem taxes imposed for a tax year that begins
320	320	on or after the effective date of this Act.
321	321	SECTION 12. This Act takes effect January 1, 2020, but only
322	322	if the constitutional amendment proposed by the 86th Legislature,
323	323	Regular Session, 2019, authorizing the legislature to provide for a
324	324	temporary local option exemption from ad valorem taxation of a
325	325	portion of the appraised value of certain property damaged by a
326	326	disaster is approved by the voters. If that amendment is not
327	327	approved by the voters, this Act has no effect.