Texas 2023 - 88th Regular

Texas Senate Bill SB2131 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	88R10899 LHC-D
2	2	By: Miles S.B. No. 2131
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the treatment of a replacement structure for a
8	8	structure that was rendered uninhabitable or unusable by a casualty
9	9	or by wind or water damage as a new improvement for ad valorem tax
10	10	purposes.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 11.26(o), Tax Code, is amended to read as
13	13	follows:
14	14	(o) Notwithstanding Subsections (a), (a-3), and (b), an
15	15	improvement to property that would otherwise constitute an
16	16	improvement under Subsection (b) is not treated as an improvement
17	17	under that subsection if the improvement is a replacement structure
18	18	for a structure that was rendered uninhabitable or unusable by a
19	19	casualty or by wind or water damage. For purposes of appraising
20	20	the property in the tax year in which the structure would have
21	21	constituted an improvement under Subsection (b), the replacement
22	22	structure is considered to be an improvement under that subsection
23	23	only if[:
24	24	[(1)] the square footage of the replacement structure
25	25	exceeds that of the replaced structure as that structure existed
26	26	before the casualty or damage occurred[; or
27	27	[(2) the exterior of the replacement structure is of
28	28	higher quality construction and composition than that of the
29	29	replaced structure].
30	30	SECTION 2. Section 11.261(m), Tax Code, is amended to read
31	31	as follows:
32	32	(m) Notwithstanding Subsections (b) and (c), an improvement
33	33	to property that would otherwise constitute an improvement under
34	34	Subsection (c) is not treated as an improvement under that
35	35	subsection if the improvement is a replacement structure for a
36	36	structure that was rendered uninhabitable or unusable by a casualty
37	37	or by wind or water damage. For purposes of appraising the
38	38	property in the tax year in which the structure would have
39	39	constituted an improvement under Subsection (c), the replacement
40	40	structure is considered to be an improvement under that subsection
41	41	only if[:
42	42	[(1)] the square footage of the replacement structure
43	43	exceeds that of the replaced structure as that structure existed
44	44	before the casualty or damage occurred[; or
45	45	[(2) the exterior of the replacement structure is of
46	46	higher quality construction and composition than that of the
47	47	replaced structure].
48	48	SECTION 3. Sections 23.23(f) and (g), Tax Code, are amended
49	49	to read as follows:
50	50	(f) Notwithstanding Subsections (a) and (e) and except as
51	51	provided by Subdivision (2), an improvement to property that would
52	52	otherwise constitute a new improvement is not treated as a new
53	53	improvement if the improvement is a replacement structure for a
54	54	structure that was rendered uninhabitable or unusable by a casualty
55	55	or by wind or water damage. For purposes of appraising the
56	56	property under Subsection (a) in the tax year in which the structure
57	57	would have constituted a new improvement:
58	58	(1) the appraised value the property would have had in
59	59	the preceding tax year if the casualty or damage had not occurred is
60	60	considered to be the appraised value of the property for that year,
61	61	regardless of whether that appraised value exceeds the actual
62	62	appraised value of the property for that year as limited by
63	63	Subsection (a); and
64	64	(2) the replacement structure is considered to be a
65	65	new improvement only if[:
66	66	[(A)] the square footage of the replacement
67	67	structure exceeds that of the replaced structure as that structure
68	68	existed before the casualty or damage occurred[; or
69	69	[(B) the exterior of the replacement structure is
70	70	of higher quality construction and composition than that of the
71	71	replaced structure].
72	72	(g) In this subsection, "disaster recovery program" means
73	73	the disaster recovery program administered by the General Land
74	74	Office or by a political subdivision of this state that is funded
75	75	with community development block grant disaster recovery money
76	76	authorized by federal law. Notwithstanding Subsection (f)(2), and
77	77	only to the extent necessary to satisfy the requirements of the
78	78	disaster recovery program, a replacement structure described by
79	79	that subdivision is not considered to be a new improvement if to
80	80	satisfy the requirements of the disaster recovery program it was
81	81	necessary that [:
82	82	[(1)] the square footage of the replacement structure
83	83	exceed that of the replaced structure as that structure existed
84	84	before the casualty or damage occurred [; or
85	85	[(2) the exterior of the replacement structure be of
86	86	higher quality construction and composition than that of the
87	87	replaced structure].
88	88	SECTION 4. This Act applies only to ad valorem taxes imposed
89	89	for a tax year beginning on or after the effective date of this Act.
90	90	SECTION 5. This Act takes effect January 1, 2024.