Bill Text: TX HB492 | 2019-2020 | 86th Legislature | Enrolled


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: Moderate Partisan Bill (Republican 46-11)

Status: (Passed) 2019-06-14 - See remarks for effective date [HB492 Detail]

Download: Texas-2019-HB492-Enrolled.html
 
 
  H.B. No. 492
 
 
 
 
AN ACT
  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;
                     (B)  an improvement to real property; or
                     (C)  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;
               (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 (h).
         (c)  Notwithstanding Subsection (b), if the governor first
  declares territory in a taxing unit to be a disaster area as a
  result of a disaster on or after the date a taxing unit adopts a tax
  rate for the tax year in which the declaration is issued, a person
  is not entitled to the exemption for that tax year unless the
  governing body of the taxing unit adopts the exemption in the manner
  provided by law for official action by the body. 
         (d)  An exemption adopted by the governing body of a taxing
  unit under Subsection (c) must:
               (1)  specify the disaster to which the exemption
  pertains; and
               (2)  be adopted not later than the 60th day after the
  date the governor first declares territory in the taxing unit to be
  a disaster area as a result of the disaster.
         (e)  A taxing unit the governing body of which adopts an
  exemption under Subsection (c) shall, not later than the seventh
  day after the date the governing body adopts the exemption, notify
  the chief appraiser of each appraisal district in which the taxing
  unit participates, the assessor for the taxing unit, and the
  comptroller of the adoption of the exemption.
         (f)  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 (g). 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.
         (g)  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) or
  (C), 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) or
  (C), 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.
         (h)  Subject to Subsection (i), 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.
         (i)  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 (h) 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.
         (j)  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.
         (k)  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, [or] 11.315, or 11.35,
  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(b) 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.  A person who
  qualifies for an exemption under Section 11.35(c) must apply for
  the exemption not later than the 45th day after the date the
  governing body of the taxing unit adopts the exemption.  The chief
  appraiser may extend the deadlines prescribed by this subsection
  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, [or] 11.253, or 11.35, the property
  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; [or]
               (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; [and]
               (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.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 492 was passed by the House on April
  17, 2019, by the following vote:  Yeas 137, Nays 0, 2 present, not
  voting; that the House refused to concur in Senate amendments to
  H.B. No. 492 on May 23, 2019, and requested the appointment of a
  conference committee to consider the differences between the two
  houses; and that the House adopted the conference committee report
  on H.B. No. 492 on May 26, 2019, by the following vote:  Yeas 146,
  Nays 0, 1 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 492 was passed by the Senate, with
  amendments, on May 22, 2019, by the following vote:  Yeas 31, Nays
  0; at the request of the House, the Senate appointed a conference
  committee to consider the differences between the two houses; and
  that the Senate adopted the conference committee report on H.B. No.
  492 on May 26, 2019, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor       
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