Texas 2023 - 88th 2nd C.S.

Texas House Bill HB39 Compare Versions

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Version 2 (New)

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1	1	By: Bucy H.B. No. 39
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to a temporary exemption for a residence homestead
7	7	rendered uninhabitable.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Chapter 11, Property Tax Code, is amended by
10	10	adding Section 11.36 to read as follows:
11	11	Section 11.36. TEMPORARY EXEMPTION FOR RESIDENCE HOMESTEAD
12	12	RENDERED UNINHABITABLE.
13	13	(a) In this section:
14	14	(1) "Damage" means physical damage.
15	15	(2) "Qualified property" means an improvement to real
16	16	property:
17	17	(A) that a person owns and has qualified as his
18	18	residence homestead and that receives an exemption under
19	19	Section 11.13; and
20	20	(B) that has been rendered uninhabitable because
21	21	of physical damage but that is not located in an area the governor
22	22	has declared a disaster area.
23	23	(b) A person is entitled to an exemption from taxation by a
24	24	taxing unit of a portion of the appraised value of qualified
25	25	property that the person owns in an amount determined under
26	26	Subsection (e).
27	27	(c) On receipt of an application for the exemption
28	28	authorized by this section, the chief appraiser shall determine
29	29	whether any item of qualified property that is the subject of the
30	30	application has been rendered uninhabitable and assign to each such
31	31	item of qualified property a damage assessment rating of Level I,
32	32	Level II, or Level III, as appropriate, as provided by Subsection
33	33	(d).
34	34	(d) The chief appraiser shall assign to an item of qualified
35	35	property:
36	36	(1) a Level I damage assessment rating if the property
37	37	is at least 30 percent, but less than 60 percent, damaged, meaning
38	38	that the property has suffered only nonstructural damage, including
39	39	nonstructural damage to the roof, walls, foundation, or mechanical
40	40	components, and the waterline, if any, is less than 18 inches above
41	41	the floor;
42	42	(2) a Level II damage assessment rating if the
43	43	property is at least 60 percent damaged but is not a total loss,
44	44	meaning that the property has suffered significant structural
45	45	damage requiring extensive repair due to the failure or partial
46	46	failure of structural elements, wall elements, or the foundation,
47	47	or the waterline, if any, is at least 18 inches above the floor; or
48	48	(3) a Level III damage assessment rating if the
49	49	property is a total loss, meaning that repair of the property is not
50	50	feasible.
51	51	(e) Subject to Subsection (f), the amount of the exemption
52	52	authorized by this section for an item of qualified property is
53	53	determined by multiplying the appraised value, determined for the
54	54	tax year in which the disaster occurred, of the property by:
55	55	(1) 30 percent, if the property is assigned a Level I
56	56	damage assessment rating;
57	57	(2) 60 percent, if the property is assigned a Level II
58	58	damage assessment rating; or
59	59	(3) 100 percent, if the property is assigned a Level
60	60	III damage assessment rating.
61	61	(f) If a person qualifies for the exemption authorized by
62	62	this section after the beginning of the tax year, the amount of the
63	63	exemption is calculated by multiplying the amount determined under
64	64	Subsection (e) by a fraction, the denominator of which is 365 and
65	65	the numerator of which is the number of days remaining in the tax
66	66	year after the day on which the person's qualified property is
67	67	damaged, including the day on which the damage occurred.
68	68	(g) If a person qualifies for the exemption authorized by
69	69	this section after the amount of the tax due on the qualified
70	70	property is calculated and the effect of the qualification is to
71	71	reduce the amount of the tax due on the property, the assessor for
72	72	each applicable taxing unit shall recalculate the amount of the tax
73	73	due on the property and correct the tax roll. If the tax bill has
74	74	been mailed and the tax on the property has not been paid, the
75	75	assessor shall mail a corrected tax bill to the person in whose name
76	76	the property is listed on the tax roll or to the person's authorized
77	77	agent. If the tax on the property has been paid, the tax collector
78	78	for the taxing unit shall refund to the person who paid the tax the
79	79	amount by which the payment exceeded the tax due. No interest is
80	80	due on an amount refunded under this subsection.
81	81	(h) The exemption authorized by this section expires as to
82	82	an item of qualified property on January 1 of the first tax year in
83	83	which the property is reappraised under Section 25.18.
84	84	SECTION 2. The exemption provided by this action applies
85	85	only to an application received on or after the effective date of
86	86	this section.
87	87	SECTION 3. This Act takes effect immediately if it receives
88	88	a vote of two-thirds of all the members elected to each house, as
89	89	provided by Section 39, Article III, Texas Constitution. If this
90	90	Act does not receive the vote necessary for immediate effect, this
91	91	Act takes effect on the 91st day after the last day of the
92	92	legislative session.