BILL ANALYSIS Senate Research Center S.B. 1427 87R1527 SMT-D By: Bettencourt Local Government 4/8/2021 As Filed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT Last session H.B. 492 passed and the constitutional amendment was approved by voters to allow for an automatic exemption if your property was damaged during a declared disaster. Due to the statewide disaster declaration due to the pandemic, there were efforts made to access this exemption. There are four tiers in Section 11.35, Tax Code; tiers two, three, and four list specific types of physical damage that must occur to qualify for the exemption. Tier one did not list a specific type of damage. Appraisal districts received applications for this exemption when it was clear from reading the entire section of code that it was intended only for physical damage and not economic damage. An attorney general opinion was requested on the question whether Section 11.35, Tax Code, applied to only physical damage. The opinion stated that Section 11.35, Tax Code, exemptions apply to physical damage sustained during a declared disaster. S.B. 1427 seeks to remove any doubt that only physical damage exemptions are available under Section 11.35, Tax Code, as originally intended and confirmed in the attorney general opinion. As proposed, S.B. 1427 amends current law 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. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Sections 11.35(a) and (g), Tax Code, as follows: (a) Defines "damage" for purposes of Section 11.35 (Temporary Exemption for Qualified Property Damaged by Disaster) as meaning physical damage and makes nonsubstantive changes to this subsection. (g) Makes conforming changes to this subsection. SECTION 2. Provides that the amendment made by this Act is a clarification of existing law and does not imply that existing law is authorized to be construed as inconsistent with the law as amended by this Act. SECTION 3. Effective date: upon passage or September 1, 2021.
BILL ANALYSIS
Senate Research Center S.B. 1427
87R1527 SMT-D By: Bettencourt
Local Government
4/8/2021
As Filed
Senate Research Center
S.B. 1427
87R1527 SMT-D
By: Bettencourt
Local Government
4/8/2021
As Filed
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
Last session H.B. 492 passed and the constitutional amendment was approved by voters to allow for an automatic exemption if your property was damaged during a declared disaster. Due to the statewide disaster declaration due to the pandemic, there were efforts made to access this exemption. There are four tiers in Section 11.35, Tax Code; tiers two, three, and four list specific types of physical damage that must occur to qualify for the exemption. Tier one did not list a specific type of damage. Appraisal districts received applications for this exemption when it was clear from reading the entire section of code that it was intended only for physical damage and not economic damage.
An attorney general opinion was requested on the question whether Section 11.35, Tax Code, applied to only physical damage. The opinion stated that Section 11.35, Tax Code, exemptions apply to physical damage sustained during a declared disaster.
S.B. 1427 seeks to remove any doubt that only physical damage exemptions are available under Section 11.35, Tax Code, as originally intended and confirmed in the attorney general opinion.
As proposed, S.B. 1427 amends current law 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.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Sections 11.35(a) and (g), Tax Code, as follows:
(a) Defines "damage" for purposes of Section 11.35 (Temporary Exemption for Qualified Property Damaged by Disaster) as meaning physical damage and makes nonsubstantive changes to this subsection.
(g) Makes conforming changes to this subsection.
SECTION 2. Provides that the amendment made by this Act is a clarification of existing law and does not imply that existing law is authorized to be construed as inconsistent with the law as amended by this Act.
SECTION 3. Effective date: upon passage or September 1, 2021.