By: Bettencourt S.B. No. 1427
(Shine)
A BILL TO BE ENTITLED
AN ACT
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.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 11.35(a) and (g), Tax Code, are amended
to read as follows:
(a) In this section:
(1) "Damage" means physical damage.
(2) "Qualified[, "qualified] property" means property
that:
(A) [(1)] consists of:
(i) [(A)] tangible personal property used
for the production of income;
(ii) [(B)] an improvement to real property;
or
(iii) [(C)] a manufactured home as that
term is defined by Section 1201.003, Occupations Code, that is used
as a dwelling, regardless of whether the owner of the manufactured
home elects to treat the manufactured home as real property under
Section 1201.2055, Occupations Code;
(B) [(2)] is located in an area declared by the
governor to be a disaster area following a disaster;
(C) [(3)] is at least 15 percent damaged by the
disaster, as determined by the chief appraiser under this section;
and
(D) [(4)] for property described by Paragraph
(A)(i) [Subdivision (1)(A)], is the subject of a rendition
statement or property report filed by the property owner under
Section 22.01 that demonstrates that the property had taxable situs
in the disaster area for the tax year in which the disaster
occurred.
(g) The chief appraiser shall assign to an item of qualified
property:
(1) a Level I damage assessment rating if the property
is at least 15 percent, but less than 30 percent, damaged, meaning
that the property suffered minimal damage and may continue to be
used as intended;
(2) a Level II damage assessment rating if the
property is at least 30 percent, but less than 60 percent, damaged,
which, for qualified property described by Subsection
(a)(2)(A)(ii) or (iii) [(a)(1)(B) or (C)], means that the property
has suffered only nonstructural damage, including nonstructural
damage to the roof, walls, foundation, or mechanical components,
and the waterline, if any, is less than 18 inches above the floor;
(3) a Level III damage assessment rating if the
property is at least 60 percent damaged but is not a total loss,
which, for qualified property described by Subsection
(a)(2)(A)(ii) or (iii) [(a)(1)(B) or (C)], means that the property
has suffered significant structural damage requiring extensive
repair due to the failure or partial failure of structural
elements, wall elements, or the foundation, or the waterline is at
least 18 inches above the floor; or
(4) a Level IV damage assessment rating if the
property is a total loss, meaning that repair of the property is not
feasible.
SECTION 2. The amendment made by this Act is a clarification
of existing law and does not imply that existing law may be
construed as inconsistent with the law as amended by this Act.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2021.