Bill Text: TX HB4618 | 2023-2024 | 88th Legislature | Introduced

---

Bill Title: Relating to a temporary exemption for a residence homestead rendered uninhabitable.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2023-03-22 - Referred to Ways & Means [HB4618 Detail]

Download: Texas-2023-HB4618-Introduced.html

---

By: Bucy H.B. No. 4618

A BILL TO BE ENTITLED
AN ACT
relating to a temporary exemption for a residence homestead
rendered uninhabitable.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 11, Property Tax Code, is amended by
adding Section 11.36 to read as follows:
Section 11.36. TEMPORARY EXEMPTION FOR RESIDENCE HOMESTEAD
RENDERED UNINHABITABLE.
(a) In this section:
(1) "Damage" means physical damage.
(2) "Qualified property" means an improvement to real
property:
(A) that a person owns and has qualified as his
residence homestead and that receives an exemption under Section
11.13; and
(B) that has been rendered uninhabitable because
of physical damage but that is not located in an area the governor
has declared a disaster area.
(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 has been rendered uninhabitable and assign to each such
item of qualified property a damage assessment rating of Level I,
Level II, or Level III, as appropriate, as provided by Subsection
(d).
(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 30 percent, but less than 60 percent, damaged, meaning
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;
(2) a Level II damage assessment rating if the
property is at least 60 percent damaged but is not a total loss,
meaning 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, if any, is at least 18 inches above the floor; or
(3) a Level III 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) 30 percent, if the property is assigned a Level I
damage assessment rating;
(2) 60 percent, if the property is assigned a Level II
damage assessment rating; or
(3) 100 percent, if the property is assigned a Level
III 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 person's qualified property is
damaged, including the day on which the damage occurred.
(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 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. 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. The exemption provided by this action applies
only to an application received on or after the effective date of
this section.
SECTION 3. This Act takes effect September 1, 2023.