89R743 RDS-D
By: Hughes S.B. No. 678
A BILL TO BE ENTITLED
AN ACT
relating to the reappraisal for ad valorem taxation purposes of
certain property completely destroyed or partially damaged by an
accidental fire.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 23, Tax Code, is amended by
adding Section 23.025 to read as follows:
Sec. 23.025. REAPPRAISAL OF PROPERTY DESTROYED OR DAMAGED
BY FIRE. (a) In this section, "qualified property" means real
property that is completely destroyed or at least 15 percent
damaged by an accidental fire. For purposes of this subsection,
"real property" includes a manufactured home as that term is
defined by Section 1201.003, Occupations Code, that is used as a
dwelling, regardless of whether the owner of the manufactured home
elects to treat the manufactured home as real property under
Section 1201.2055, Occupations Code.
(b) A property owner may request the chief appraiser of an
appraisal district in which a qualified property owned by the
property owner and destroyed or damaged by an accidental fire is
located to reappraise the property. The owner must make the request
in writing not later than the 180th day after the date the fire
occurs.
(c) Except as provided by this subsection, the chief
appraiser shall reappraise a qualified property if requested to do
so by the owner of the property. The chief appraiser is not
required to reappraise the property if the property qualifies for
an exemption under Section 11.35 as the result of the same fire.
(d) The comptroller, in consultation with appraisal
districts, shall develop guidelines for determining the process for
reappraising property under this section, including for
determining whether a property is a qualified property and for
calculating an appropriate value of any exemption and appraisal
limitation applied during or after the tax year for which the
property is reappraised.
(e) The chief appraiser shall complete the reappraisal of
property as soon as practicable after a request is made.
(f) The chief appraiser shall include in the appraisal
records:
(1) the date the fire occurred;
(2) the appraised value of the property before the
fire occurred;
(3) the appraised value of the property immediately
after the fire occurred; and
(4) any other information required to be included in
the records.
(g) The amount of the taxes imposed by a taxing unit on
property reappraised under this section for the tax year in which a
fire occurs is calculated by:
(1) multiplying the amount of the taxes that otherwise
would be imposed by the taxing unit on the property for the entire
year by a fraction, the denominator of which is 365 and the
numerator of which is the number of days that elapsed before the
date the fire occurred;
(2) multiplying the amount of the taxes that would be
imposed by the taxing unit on the property for the entire year based
on the reappraised value of the property by a fraction, the
denominator of which is 365 and the numerator of which is the number
of days, including the date the fire occurred, remaining in the tax
year; and
(3) adding the amounts calculated under Subdivisions
(1) and (2).
(h) If property is reappraised under this section, the
assessor for each taxing unit shall calculate the amount of the tax
due on the property as provided by this section. If the property is
reappraised after the amount of the tax due on the property is
calculated, the assessor 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.
SECTION 2. Not later than January 1, 2026, the comptroller
shall develop guidelines required by Section 23.025, 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 to the
reappraisal of property destroyed or damaged by an accidental fire
only if the fire occurs on or after January 1, 2026.
SECTION 4. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2025.