| 1 | 1 | | 89R9068 CS-D |
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| 2 | 2 | | By: Raymond H.B. No. 3557 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to the exclusion from the market value of real property for |
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| 10 | 10 | | ad valorem tax purposes of the value of any incomplete structure |
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| 11 | 11 | | located on the property. |
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| 12 | 12 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 13 | 13 | | SECTION 1. Subchapter A, Chapter 23, Tax Code, is amended by |
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| 14 | 14 | | adding Section 23.015 to read as follows: |
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| 15 | 15 | | Sec. 23.015. EXCLUSION OF VALUE OF INCOMPLETE STRUCTURE |
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| 16 | 16 | | INTENDED FOR HUMAN OCCUPANCY. (a) In determining the market value |
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| 17 | 17 | | of real property, the chief appraiser shall exclude from that value |
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| 18 | 18 | | the value of any structure located on the property if the structure: |
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| 19 | 19 | | (1) is intended for human occupancy; |
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| 20 | 20 | | (2) is separate from any other structure located on |
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| 21 | 21 | | the property; and |
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| 22 | 22 | | (3) is incomplete on January 1 of the tax year for |
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| 23 | 23 | | which the chief appraiser determines the market value of the |
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| 24 | 24 | | property. |
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| 25 | 25 | | (b) For the purpose of this section, a structure is |
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| 26 | 26 | | considered complete: |
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| 27 | 27 | | (1) on the date a certificate of occupancy or similar |
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| 28 | 28 | | document is issued for the structure, if the structure is located in |
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| 29 | 29 | | a political subdivision that requires a person to obtain a |
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| 30 | 30 | | certificate of occupancy or similar document before the structure |
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| 31 | 31 | | may be occupied; or |
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| 32 | 32 | | (2) if Subdivision (1) does not apply, on the date the |
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| 33 | 33 | | structure is no longer under active construction or other physical |
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| 34 | 34 | | preparation necessary for occupancy, as determined by the chief |
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| 35 | 35 | | appraiser. |
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| 36 | 36 | | SECTION 2. Section 23.015, Tax Code, as added by this Act, |
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| 37 | 37 | | applies only to the appraisal of real property for ad valorem tax |
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| 38 | 38 | | purposes for an ad valorem tax year that begins on or after the |
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| 39 | 39 | | effective date of this Act. |
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| 40 | 40 | | SECTION 3. This Act takes effect January 1, 2026. |
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