Texas Senate Bill SB1427

Texas 2021 - 87th Regular

Caption

Relating to the applicability of the temporary exemption from ad valorem taxation of a portion of the appraised value of certain property damaged by a disaster.

Impact

The enactment of SB 1427 positively impacts state tax laws by providing clearer guidelines for property owners in disaster-stricken areas. This initiative aims to alleviate the financial burden on individuals and businesses who could potentially face increased taxation despite having suffered property losses. By allowing for a temporary tax exemption, the bill supports recovery efforts and encourages economic stability within communities impacted by disasters. It ensures that affected property owners are not further disadvantaged by taxation during their recovery phase.

Summary

Senate Bill 1427 addresses the applicability of a temporary exemption from ad valorem taxation for properties that have suffered damage due to disasters. It clarifies the definition of 'qualified property' and specifies conditions under which properties may be eligible for tax exemptions. The bill elaborates on damage assessment levels, categorizing them based on the extent of physical damage, which ranges from minimal damage to total loss, thus guiding property owners through the process of determining tax relief eligibility post-disaster.

Sentiment

The sentiment around SB 1427 appears to be largely favorable, with broad bipartisan support observable in the voting history. The bill passed the Senate with a vote of 31-0 and later received a 139-3 approval in the House, indicating a consensus on the need for disaster relief measures regarding property taxation. Advocates believe the bill provides much-needed clarity and support for property owners facing the aftermath of disasters, contributing positively to community rebuilding efforts.

Contention

While there appears to be general support for the bill, some contention existed surrounding the definition of 'damage' and the assessment levels, as these determinations can significantly impact property owners' eligibility for exemptions. Discussions may have included concerns about ensuring the fairness and accuracy of damage assessments, as inaccuracies could lead to either undue burdens on property owners or excessive relief for others. Nevertheless, the overall debate emphasized the necessity for clear tax guidelines in the wake of disasters.