| 1 | 1 | | 86R4664 TJB-F |
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| 2 | 2 | | By: Kolkhorst S.B. No. 540 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the period for which a property owner may receive a |
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| 8 | 8 | | residence homestead exemption from ad valorem taxation for property |
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| 9 | 9 | | that is rendered uninhabitable or unusable as a result of a |
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| 10 | 10 | | disaster. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Section 11.135, Tax Code, is amended by amending |
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| 13 | 13 | | Subsection (a) and adding Subsection (a-1) to read as follows: |
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| 14 | 14 | | (a) If a qualified residential structure for which the owner |
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| 15 | 15 | | receives an exemption under Section 11.13 is rendered uninhabitable |
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| 16 | 16 | | or unusable by a casualty or by wind or water damage, the owner may |
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| 17 | 17 | | continue to receive the exemption for the structure and the land and |
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| 18 | 18 | | improvements used in the residential occupancy of the structure |
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| 19 | 19 | | while the owner constructs a replacement qualified residential |
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| 20 | 20 | | structure on the land if the owner does not establish a different |
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| 21 | 21 | | principal residence for which the owner receives an exemption under |
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| 22 | 22 | | Section 11.13 during that period and intends to return and occupy |
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| 23 | 23 | | the structure as the owner's principal residence. To continue to |
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| 24 | 24 | | receive the exemption, the owner must begin active construction of |
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| 25 | 25 | | the replacement qualified residential structure or other physical |
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| 26 | 26 | | preparation of the site on which the structure is to be located not |
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| 27 | 27 | | later than the first anniversary of the date the owner ceases to |
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| 28 | 28 | | occupy the former qualified residential structure as the owner's |
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| 29 | 29 | | principal residence. |
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| 30 | 30 | | (a-1) An [The] owner may not receive an [the] exemption |
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| 31 | 31 | | under Section 11.13 for [that] property under the circumstances |
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| 32 | 32 | | described by Subsection (a) [this subsection] for more than: |
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| 33 | 33 | | (1) five years if: |
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| 34 | 34 | | (A) the property is located in an area declared |
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| 35 | 35 | | to be a disaster area by the governor following a disaster; and |
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| 36 | 36 | | (B) the residential structure located on the |
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| 37 | 37 | | property is rendered uninhabitable or unusable as a result of the |
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| 38 | 38 | | disaster; or |
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| 39 | 39 | | (2) two years if Subdivision (1) does not apply. |
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| 40 | 40 | | SECTION 2. This Act takes effect immediately if it receives |
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| 41 | 41 | | a vote of two-thirds of all the members elected to each house, as |
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| 42 | 42 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 43 | 43 | | Act does not receive the vote necessary for immediate effect, this |
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| 44 | 44 | | Act takes effect September 1, 2019. |
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