| 4 | 6 | | AN ACT |
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| 5 | 7 | | relating to the applicability of the temporary exemption from ad |
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| 6 | 8 | | valorem taxation of a portion of the appraised value of certain |
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| 7 | 9 | | property damaged by a disaster. |
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| 8 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 11 | | SECTION 1. Sections 11.35(a) and (g), Tax Code, are amended |
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| 10 | 12 | | to read as follows: |
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| 11 | 13 | | (a) In this section: |
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| 12 | 14 | | (1) "Damage" means physical damage. |
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| 13 | 15 | | (2) "Qualified[, "qualified] property" means property |
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| 14 | 16 | | that: |
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| 15 | 17 | | (A) [(1)] consists of: |
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| 16 | 18 | | (i) [(A)] tangible personal property used |
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| 17 | 19 | | for the production of income; |
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| 18 | 20 | | (ii) [(B)] an improvement to real property; |
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| 19 | 21 | | or |
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| 20 | 22 | | (iii) [(C)] a manufactured home as that |
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| 21 | 23 | | term is defined by Section 1201.003, Occupations Code, that is used |
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| 22 | 24 | | as a dwelling, regardless of whether the owner of the manufactured |
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| 23 | 25 | | home elects to treat the manufactured home as real property under |
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| 24 | 26 | | Section 1201.2055, Occupations Code; |
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| 25 | 27 | | (B) [(2)] is located in an area declared by the |
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| 26 | 28 | | governor to be a disaster area following a disaster; |
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| 27 | 29 | | (C) [(3)] is at least 15 percent damaged by the |
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| 28 | 30 | | disaster, as determined by the chief appraiser under this section; |
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| 29 | 31 | | and |
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| 30 | 32 | | (D) [(4)] for property described by Paragraph |
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| 31 | 33 | | (A)(i) [Subdivision (1)(A)], is the subject of a rendition |
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| 32 | 34 | | statement or property report filed by the property owner under |
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| 33 | 35 | | Section 22.01 that demonstrates that the property had taxable situs |
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| 34 | 36 | | in the disaster area for the tax year in which the disaster |
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| 35 | 37 | | occurred. |
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| 36 | 38 | | (g) The chief appraiser shall assign to an item of qualified |
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| 37 | 39 | | property: |
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| 38 | 40 | | (1) a Level I damage assessment rating if the property |
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| 39 | 41 | | is at least 15 percent, but less than 30 percent, damaged, meaning |
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| 40 | 42 | | that the property suffered minimal damage and may continue to be |
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| 41 | 43 | | used as intended; |
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| 42 | 44 | | (2) a Level II damage assessment rating if the |
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| 43 | 45 | | property is at least 30 percent, but less than 60 percent, damaged, |
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| 44 | 46 | | which, for qualified property described by Subsection |
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| 45 | 47 | | (a)(2)(A)(ii) or (iii) [(a)(1)(B) or (C)], means that the property |
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| 46 | 48 | | has suffered only nonstructural damage, including nonstructural |
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| 47 | 49 | | damage to the roof, walls, foundation, or mechanical components, |
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| 48 | 50 | | and the waterline, if any, is less than 18 inches above the floor; |
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| 49 | 51 | | (3) a Level III damage assessment rating if the |
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| 50 | 52 | | property is at least 60 percent damaged but is not a total loss, |
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| 51 | 53 | | which, for qualified property described by Subsection |
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| 52 | 54 | | (a)(2)(A)(ii) or (iii) [(a)(1)(B) or (C)], means that the property |
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| 53 | 55 | | has suffered significant structural damage requiring extensive |
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| 54 | 56 | | repair due to the failure or partial failure of structural |
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| 55 | 57 | | elements, wall elements, or the foundation, or the waterline is at |
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| 56 | 58 | | least 18 inches above the floor; or |
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| 57 | 59 | | (4) a Level IV damage assessment rating if the |
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| 58 | 60 | | property is a total loss, meaning that repair of the property is not |
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| 59 | 61 | | feasible. |
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| 60 | 62 | | SECTION 2. The amendment made by this Act is a clarification |
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| 61 | 63 | | of existing law and does not imply that existing law may be |
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| 62 | 64 | | construed as inconsistent with the law as amended by this Act. |
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| 63 | 65 | | SECTION 3. This Act takes effect immediately if it receives |
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| 64 | 66 | | a vote of two-thirds of all the members elected to each house, as |
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| 65 | 67 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 66 | 68 | | Act does not receive the vote necessary for immediate effect, this |
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| 67 | 69 | | Act takes effect September 1, 2021. |
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