Bill Text: TX HB4433 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to a temporary exemption from ad valorem taxation of a portion of the appraised value of certain property damaged by a disaster.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2019-03-26 - Referred to Ways & Means [HB4433 Detail]
Download: Texas-2019-HB4433-Introduced.html
86R14312 SMT-D | ||
By: Bohac | H.B. No. 4433 |
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relating to a temporary exemption from ad valorem taxation of a | ||
portion of the appraised value of certain property damaged by a | ||
disaster. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by | ||
adding Section 11.35 to read as follows: | ||
Sec. 11.35. TEMPORARY EXEMPTION FOR QUALIFIED PROPERTY | ||
DAMAGED BY DISASTER. (a) In this section, "qualified property" | ||
means property that: | ||
(1) consists of: | ||
(A) tangible personal property used for the | ||
production of income; or | ||
(B) an improvement to real property; | ||
(2) is located in an area declared by the governor to | ||
be a disaster area following a disaster; | ||
(3) is at least 15 percent damaged by the disaster, as | ||
determined by the chief appraiser under this section; and | ||
(4) for property described by Subdivision (1)(A), is | ||
the subject of a rendition statement or property report filed by the | ||
property owner under Section 22.01 that demonstrates that the | ||
property had taxable situs in the disaster area for the tax year in | ||
which the disaster occurred. | ||
(b) A person is entitled to an exemption from taxation by a | ||
taxing unit of a portion of the appraised value of qualified | ||
property that the person owns in an amount determined under | ||
Subsection (e). | ||
(c) On receipt of an application for the exemption | ||
authorized by this section, the chief appraiser shall determine | ||
whether any item of qualified property that is the subject of the | ||
application is at least 15 percent damaged by the disaster and | ||
assign to each such item of qualified property a damage assessment | ||
rating of Level I, Level II, Level III, or Level IV, as appropriate, | ||
as provided by Subsection (d). In determining the appropriate | ||
damage assessment rating, the chief appraiser may rely on | ||
information provided by a county emergency management authority, | ||
the Federal Emergency Management Agency, or any other source the | ||
chief appraiser considers appropriate. | ||
(d) The chief appraiser shall assign to an item of qualified | ||
property: | ||
(1) a Level I damage assessment rating if the property | ||
is at least 15 percent, but less than 30 percent, damaged, meaning | ||
that the property suffered minimal damage and may continue to be | ||
used as intended; | ||
(2) a Level II damage assessment rating if the | ||
property is at least 30 percent, but less than 60 percent, damaged, | ||
which, for qualified property described by Subsection (a)(1)(B), | ||
means that the property has suffered only nonstructural damage, | ||
including nonstructural damage to the roof, walls, foundation, or | ||
mechanical components, and the waterline, if any, is less than 18 | ||
inches above the floor; | ||
(3) a Level III damage assessment rating if the | ||
property is at least 60 percent damaged but is not a total loss, | ||
which, for qualified property described by Subsection (a)(1)(B), | ||
means that the property has suffered significant structural damage | ||
requiring extensive repair due to the failure or partial failure of | ||
structural elements, wall elements, or the foundation, or the | ||
waterline is at least 18 inches above the floor; or | ||
(4) a Level IV damage assessment rating if the | ||
property is a total loss, meaning that repair of the property is not | ||
feasible. | ||
(e) Subject to Subsection (f), the amount of the exemption | ||
authorized by this section for an item of qualified property is | ||
determined by multiplying the appraised value, determined for the | ||
tax year in which the disaster occurred, of the property by: | ||
(1) 15 percent, if the property is assigned a Level I | ||
damage assessment rating; | ||
(2) 30 percent, if the property is assigned a Level II | ||
damage assessment rating; | ||
(3) 60 percent, if the property is assigned a Level III | ||
damage assessment rating; or | ||
(4) 100 percent, if the property is assigned a Level IV | ||
damage assessment rating. | ||
(f) If a person qualifies for the exemption authorized by | ||
this section after the beginning of the tax year, the amount of the | ||
exemption is calculated by multiplying the amount determined under | ||
Subsection (e) 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 day on which the governor first declares the area in | ||
which the person's qualified property is located to be a disaster | ||
area, including the day on which the governor makes the | ||
declaration. | ||
(g) If a person qualifies for the exemption authorized by | ||
this section after the amount of the tax due on the qualified | ||
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 taxing unit that has adopted the exemption 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. No interest is due on an amount refunded under this | ||
subsection. | ||
(h) The exemption authorized by this section expires as to | ||
an item of qualified property on January 1 of the first tax year in | ||
which the property is reappraised under Section 25.18. | ||
SECTION 2. Section 11.42(e), Tax Code, is amended to read as | ||
follows: | ||
(e) A person who qualifies for an exemption under Section | ||
11.131 or 11.35 after January 1 of a tax year may receive the | ||
exemption for the applicable portion of that tax year immediately | ||
on qualification for the exemption. | ||
SECTION 3. Section 11.43, Tax Code, is amended by amending | ||
Subsection (c) and adding Subsection (s) to read as follows: | ||
(c) An exemption provided by Section 11.13, 11.131, 11.132, | ||
11.133, 11.134, 11.17, 11.18, 11.182, 11.1827, 11.183, 11.19, | ||
11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m), 11.231, | ||
11.254, 11.27, 11.271, 11.29, 11.30, 11.31, [ |
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once allowed, need not be claimed in subsequent years, and except as | ||
otherwise provided by Subsection (e), the exemption applies to the | ||
property until it changes ownership or the person's qualification | ||
for the exemption changes. However, except as provided by | ||
Subsection (r), the chief appraiser may require a person allowed | ||
one of the exemptions in a prior year to file a new application to | ||
confirm the person's current qualification for the exemption by | ||
delivering a written notice that a new application is required, | ||
accompanied by an appropriate application form, to the person | ||
previously allowed the exemption. If the person previously allowed | ||
the exemption is 65 years of age or older, the chief appraiser may | ||
not cancel the exemption due to the person's failure to file the new | ||
application unless the chief appraiser complies with the | ||
requirements of Subsection (q), if applicable. | ||
(s) A person who qualifies for an exemption under Section | ||
11.35 must apply for the exemption not later than the 105th day | ||
after the date the governor declares the area in which the person's | ||
qualified property is located to be a disaster area, provided that | ||
the chief appraiser may extend the deadline for good cause shown. | ||
SECTION 4. Section 11.45, Tax Code, is amended by adding | ||
Subsection (e) to read as follows: | ||
(e) If the chief appraiser approves, modifies, or denies an | ||
application for an exemption under Section 11.35, the chief | ||
appraiser shall deliver a written notice of the approval, | ||
modification, or denial to the applicant not later than the fifth | ||
day after the date the chief appraiser makes the determination. The | ||
notice must include the damage assessment rating assigned by the | ||
chief appraiser to each item of qualified property that is the | ||
subject of the application and a brief explanation of the | ||
procedures for protesting the chief appraiser's determination. The | ||
notice required under this subsection is in lieu of any notice that | ||
would otherwise be required under Subsection (d). | ||
SECTION 5. Section 26.012(15), Tax Code, is amended to read | ||
as follows: | ||
(15) "Lost property levy" means the amount of taxes | ||
levied in the preceding year on property value that was taxable in | ||
the preceding year but is not taxable in the current year because | ||
the property is exempt in the current year under a provision of this | ||
code other than Section 11.251, [ |
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has qualified for special appraisal under Chapter 23 in the current | ||
year, or the property is located in territory that has ceased to be | ||
a part of the taxing unit since the preceding year. | ||
SECTION 6. Section 41.03(a), Tax Code, is amended to read as | ||
follows: | ||
(a) A taxing unit is entitled to challenge before the | ||
appraisal review board: | ||
(1) the level of appraisals of any category of | ||
property in the district or in any territory in the district, but | ||
not the appraised value of a single taxpayer's property; | ||
(2) an exclusion of property from the appraisal | ||
records; | ||
(3) a grant in whole or in part of a partial exemption, | ||
other than an exemption under Section 11.35; | ||
(4) a determination that land qualifies for appraisal | ||
as provided by Subchapter C, D, E, or H, Chapter 23; or | ||
(5) a failure to identify the taxing unit as one in | ||
which a particular property is taxable. | ||
SECTION 7. Section 41.41, Tax Code, is amended by adding | ||
Subsection (c) to read as follows: | ||
(c) Notwithstanding Subsection (a), a property owner is | ||
entitled to protest before the appraisal review board only the | ||
following actions of the chief appraiser in relation to an | ||
exemption under Section 11.35: | ||
(1) the modification or denial of an application for | ||
an exemption under that section; or | ||
(2) the determination of the appropriate damage | ||
assessment rating for an item of qualified property under that | ||
section. | ||
SECTION 8. Section 41.44(a), Tax Code, is amended to read as | ||
follows: | ||
(a) Except as provided by Subsections (b), (c), (c-1), and | ||
(c-2), to be entitled to a hearing and determination of a protest, | ||
the property owner initiating the protest must file a written | ||
notice of the protest with the appraisal review board having | ||
authority to hear the matter protested: | ||
(1) not later than May 15 or the 30th day after the | ||
date that notice to the property owner was delivered to the property | ||
owner as provided by Section 25.19, whichever is later; | ||
(2) in the case of a protest of a change in the | ||
appraisal records ordered as provided by Subchapter A of this | ||
chapter or by Chapter 25, not later than the 30th day after the date | ||
notice of the change is delivered to the property owner; | ||
(3) in the case of a determination that a change in the | ||
use of land appraised under Subchapter C, D, E, or H, Chapter 23, | ||
has occurred, not later than the 30th day after the date the notice | ||
of the determination is delivered to the property owner; [ |
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(4) in the case of a determination of eligibility for a | ||
refund under Section 23.1243, not later than the 30th day after the | ||
date the notice of the determination is delivered to the property | ||
owner; or | ||
(5) in the case of a protest of the modification or | ||
denial of an application for an exemption under Section 11.35, or | ||
the determination of an appropriate damage assessment rating for an | ||
item of qualified property under that section, not later than the | ||
30th day after the date the property owner receives the notice | ||
required under Section 11.45(e). | ||
SECTION 9. Section 403.302(d), Government Code, is amended | ||
to read as follows: | ||
(d) For the purposes of this section, "taxable value" means | ||
the market value of all taxable property less: | ||
(1) the total dollar amount of any residence homestead | ||
exemptions lawfully granted under Section 11.13(b) or (c), Tax | ||
Code, in the year that is the subject of the study for each school | ||
district; | ||
(2) one-half of the total dollar amount of any | ||
residence homestead exemptions granted under Section 11.13(n), Tax | ||
Code, in the year that is the subject of the study for each school | ||
district; | ||
(3) the total dollar amount of any exemptions granted | ||
before May 31, 1993, within a reinvestment zone under agreements | ||
authorized by Chapter 312, Tax Code; | ||
(4) subject to Subsection (e), the total dollar amount | ||
of any captured appraised value of property that: | ||
(A) is within a reinvestment zone created on or | ||
before May 31, 1999, or is proposed to be included within the | ||
boundaries of a reinvestment zone as the boundaries of the zone and | ||
the proposed portion of tax increment paid into the tax increment | ||
fund by a school district are described in a written notification | ||
provided by the municipality or the board of directors of the zone | ||
to the governing bodies of the other taxing units in the manner | ||
provided by former Section 311.003(e), Tax Code, before May 31, | ||
1999, and within the boundaries of the zone as those boundaries | ||
existed on September 1, 1999, including subsequent improvements to | ||
the property regardless of when made; | ||
(B) generates taxes paid into a tax increment | ||
fund created under Chapter 311, Tax Code, under a reinvestment zone | ||
financing plan approved under Section 311.011(d), Tax Code, on or | ||
before September 1, 1999; and | ||
(C) is eligible for tax increment financing under | ||
Chapter 311, Tax Code; | ||
(5) the total dollar amount of any captured appraised | ||
value of property that: | ||
(A) is within a reinvestment zone: | ||
(i) created on or before December 31, 2008, | ||
by a municipality with a population of less than 18,000; and | ||
(ii) the project plan for which includes | ||
the alteration, remodeling, repair, or reconstruction of a | ||
structure that is included on the National Register of Historic | ||
Places and requires that a portion of the tax increment of the zone | ||
be used for the improvement or construction of related facilities | ||
or for affordable housing; | ||
(B) generates school district taxes that are paid | ||
into a tax increment fund created under Chapter 311, Tax Code; and | ||
(C) is eligible for tax increment financing under | ||
Chapter 311, Tax Code; | ||
(6) the total dollar amount of any exemptions granted | ||
under Section 11.251 or 11.253, Tax Code; | ||
(7) the difference between the comptroller's estimate | ||
of the market value and the productivity value of land that | ||
qualifies for appraisal on the basis of its productive capacity, | ||
except that the productivity value estimated by the comptroller may | ||
not exceed the fair market value of the land; | ||
(8) the portion of the appraised value of residence | ||
homesteads of individuals who receive a tax limitation under | ||
Section 11.26, Tax Code, on which school district taxes are not | ||
imposed in the year that is the subject of the study, calculated as | ||
if the residence homesteads were appraised at the full value | ||
required by law; | ||
(9) a portion of the market value of property not | ||
otherwise fully taxable by the district at market value because of: | ||
(A) action required by statute or the | ||
constitution of this state, other than Section 11.311, Tax Code, | ||
that, if the tax rate adopted by the district is applied to it, | ||
produces an amount equal to the difference between the tax that the | ||
district would have imposed on the property if the property were | ||
fully taxable at market value and the tax that the district is | ||
actually authorized to impose on the property, if this subsection | ||
does not otherwise require that portion to be deducted; or | ||
(B) action taken by the district under Subchapter | ||
B or C, Chapter 313, Tax Code, before the expiration of the | ||
subchapter; | ||
(10) the market value of all tangible personal | ||
property, other than manufactured homes, owned by a family or | ||
individual and not held or used for the production of income; | ||
(11) the appraised value of property the collection of | ||
delinquent taxes on which is deferred under Section 33.06, Tax | ||
Code; | ||
(12) the portion of the appraised value of property | ||
the collection of delinquent taxes on which is deferred under | ||
Section 33.065, Tax Code; [ |
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(13) the amount by which the market value of a | ||
residence homestead to which Section 23.23, Tax Code, applies | ||
exceeds the appraised value of that property as calculated under | ||
that section; and | ||
(14) the total dollar amount of any exemptions granted | ||
under Section 11.35, Tax Code. | ||
SECTION 10. Section 23.02, Tax Code, is repealed. | ||
SECTION 11. Section 11.35, Tax Code, as added by this Act, | ||
applies only to ad valorem taxes imposed for a tax year that begins | ||
on or after the effective date of this Act. | ||
SECTION 12. This Act takes effect January 1, 2020, but only | ||
if the constitutional amendment proposed by the 86th Legislature, | ||
Regular Session, 2019, authorizing the legislature to provide for a | ||
temporary exemption from ad valorem taxation of a portion of the | ||
appraised value of certain property damaged by a disaster is | ||
approved by the voters. If that amendment is not approved by the | ||
voters, this Act has no effect. |