89R9068 CS-D
By: Raymond H.B. No. 3557
A BILL TO BE ENTITLED
AN ACT
relating to the exclusion from the market value of real property for
ad valorem tax purposes of the value of any incomplete structure
located on the property.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 23, Tax Code, is amended by
adding Section 23.015 to read as follows:
Sec. 23.015. EXCLUSION OF VALUE OF INCOMPLETE STRUCTURE
INTENDED FOR HUMAN OCCUPANCY. (a) In determining the market value
of real property, the chief appraiser shall exclude from that value
the value of any structure located on the property if the structure:
(1) is intended for human occupancy;
(2) is separate from any other structure located on
the property; and
(3) is incomplete on January 1 of the tax year for
which the chief appraiser determines the market value of the
property.
(b) For the purpose of this section, a structure is
considered complete:
(1) on the date a certificate of occupancy or similar
document is issued for the structure, if the structure is located in
a political subdivision that requires a person to obtain a
certificate of occupancy or similar document before the structure
may be occupied; or
(2) if Subdivision (1) does not apply, on the date the
structure is no longer under active construction or other physical
preparation necessary for occupancy, as determined by the chief
appraiser.
SECTION 2. Section 23.015, Tax Code, as added by this Act,
applies only to the appraisal of real property for ad valorem tax
purposes for an ad valorem tax year that begins on or after the
effective date of this Act.
SECTION 3. This Act takes effect January 1, 2026.