By: Paxton, Blanco S.B. No. 467
Zaffirini
A BILL TO BE ENTITLED
AN ACT
relating to a temporary exemption from ad valorem taxation of the
appraised value of an improvement to a residence homestead that is
completely destroyed by a fire.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by
adding Section 11.351 to read as follows:
Sec. 11.351. TEMPORARY EXEMPTION FOR IMPROVEMENT TO
RESIDENCE HOMESTEAD DESTROYED BY FIRE. (a) In this section,
"residence homestead" has the meaning assigned by Section 11.13.
(b) A person is entitled to an exemption from taxation by a
taxing unit of the appraised value of an improvement to the person's
residence homestead that is completely destroyed by a fire in an
amount determined under Subsection (c). The person is entitled to
the exemption only for the tax year in which the fire occurs.
(c) The amount of the exemption authorized by this section
for an improvement to a residence homestead completely destroyed by
a fire in a tax year is calculated by multiplying the appraised
value of the improvement for that tax year by a fraction, the
denominator of which is 365 and the numerator of which is the number
of days remaining in the tax year after the date on which the fire
occurs.
(d) A property owner must submit an application for an
exemption authorized by this section to the chief appraiser of the
appraisal district in which the improvement that is the subject of
the application is located not later than the 180th day after the
date the fire occurs.
(e) On receipt of an application under Subsection (d), the
chief appraiser shall determine whether the improvement that is the
subject of the application was completely destroyed by a fire. In
determining whether an improvement is completely destroyed by a
fire, the chief appraiser may rely on information provided by any
other source the chief appraiser considers appropriate, including a
county fire marshal or an insurance adjuster.
(f) If a person qualifies for the exemption authorized by
this section after the amount of tax due on the property is
calculated and the effect of the qualification is to reduce the
amount of the tax due on the property, the assessor for each
applicable taxing unit shall recalculate the amount of the tax due
on the property and correct the tax roll. If the tax bill has been
mailed and the tax on the property has not been paid, the assessor
shall mail a corrected tax bill to the person in whose name the
property is listed on the tax roll or to the person's authorized
agent. If the tax on the property has been paid, the tax collector
for the taxing unit shall refund to the person who paid the tax the
amount by which the payment exceeded the tax due.
(g) The comptroller, in consultation with appraisal
districts, shall develop guidelines for determining whether an
improvement is completely destroyed by a fire.
SECTION 2. Not later than September 1, 2026, the
comptroller shall develop the guidelines required by Section
11.351, Tax Code, as added by this Act, and shall distribute those
guidelines to each appraisal district.
SECTION 3. The change in law made by this Act applies only
to an ad valorem tax year that begins on or after the effective date
of this Act.
SECTION 4. This Act takes effect January 1, 2026, but only
if the constitutional amendment proposed by the 89th Legislature,
Regular Session, 2025, to authorize the legislature to provide for
a temporary exemption from ad valorem taxation of the appraised
value of an improvement to a residence homestead that is completely
destroyed by a fire is approved by the voters. If that amendment is
not approved by the voters, this Act has no effect.