Relating to the treatment of a replacement structure for a structure that was rendered uninhabitable or unusable by a casualty, a natural disaster, or wind or water damage as a new improvement for ad valorem tax purposes.
Impact
The implications of SB58 are significant for property owners affected by disasters. By reclassifying how replacement structures are taxed, the bill aims to alleviate financial burdens on individuals rebuilding their homes and businesses. It seeks to provide clarity regarding property assessments in the tax year following damage if the replacement structure adheres to specific conditions. This could enhance recovery efforts following disasters by allowing affected property owners to rebuild without incurring additional tax liabilities that could arise from improvements.
Summary
Senate Bill 58 (SB58) proposes amendments to the Tax Code regarding how replacement structures are treated for ad valorem tax purposes. Specifically, the bill establishes that if a structure is rendered uninhabitable or unusable due to a casualty, natural disaster, or water damage, a replacement structure will not automatically be considered a new improvement for tax purposes. This determination depends on whether the replacement structure exceeds the original in square footage or has higher quality construction materials.
Contention
Notably, one point of contention regarding SB58 is the criteria used to determine whether materials for replacement structures are comparable to previous materials. If the materials used for the replaced structure are no longer available, the replacement would still qualify as a non-improvement if the new materials are deemed most comparable. This aspect may lead to disputes, particularly concerning the quality and availability of building materials, which can vary widely following disasters. Consequently, the bill could provoke discussions on the fairness of property tax assessments during recovery periods.
Relating to the treatment of a replacement structure for a structure that was rendered uninhabitable or unusable by a casualty or by wind or water damage as a new improvement for ad valorem tax purposes.
Relating to a limitation on increases in the appraised value for ad valorem tax purposes of the residence homesteads of military veterans, individuals who are disabled or 65 years of age or older, and their surviving spouses.
Relating to limitations on increases in the appraised value for ad valorem tax purposes of residence homesteads and single-family residences other than residence homesteads.
Relating to limitations on increases in the appraised value for ad valorem tax purposes of residence homesteads and single-family residences other than residence homesteads.
Relating to the treatment of a replacement structure for a structure that was rendered uninhabitable or unusable by a casualty or by wind or water damage as a new improvement for ad valorem tax purposes.
Relating to the treatment of a replacement structure for a structure that was rendered uninhabitable or unusable by a casualty or by wind or water damage as a new improvement for ad valorem tax purposes.