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A BILL TO BE ENTITLED
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AN ACT
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relating to the applicability of the temporary exemption from ad |
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valorem taxation of a portion of the appraised value of certain |
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property damaged by a disaster. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 11.35(a) and (g), Tax Code, are amended |
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to read as follows: |
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(a) In this section: |
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(1) "Damage" means physical damage. |
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(2) "Qualified[, "qualified] property" means property |
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that: |
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(A) [(1)] consists of: |
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(i) [(A)] tangible personal property used |
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for the production of income; |
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(ii) [(B)] an improvement to real property; |
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or |
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(iii) [(C)] a manufactured home as that |
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term is defined by Section 1201.003, Occupations Code, that is used |
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as a dwelling, regardless of whether the owner of the manufactured |
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home elects to treat the manufactured home as real property under |
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Section 1201.2055, Occupations Code; |
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(B) [(2)] is located in an area declared by the |
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governor to be a disaster area following a disaster; |
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(C) [(3)] is at least 15 percent damaged by the |
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disaster, as determined by the chief appraiser under this section; |
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and |
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(D) [(4)] for property described by Paragraph |
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(A)(i) [Subdivision (1)(A)], is the subject of a rendition |
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statement or property report filed by the property owner under |
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Section 22.01 that demonstrates that the property had taxable situs |
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in the disaster area for the tax year in which the disaster |
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occurred. |
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(g) The chief appraiser shall assign to an item of qualified |
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property: |
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(1) a Level I damage assessment rating if the property |
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is at least 15 percent, but less than 30 percent, damaged, meaning |
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that the property suffered minimal damage and may continue to be |
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used as intended; |
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(2) a Level II damage assessment rating if the |
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property is at least 30 percent, but less than 60 percent, damaged, |
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which, for qualified property described by Subsection |
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(a)(2)(A)(ii) or (iii) [(a)(1)(B) or (C)], means that the property |
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has suffered only nonstructural damage, including nonstructural |
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damage to the roof, walls, foundation, or mechanical components, |
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and the waterline, if any, is less than 18 inches above the floor; |
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(3) a Level III damage assessment rating if the |
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property is at least 60 percent damaged but is not a total loss, |
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which, for qualified property described by Subsection |
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(a)(2)(A)(ii) or (iii) [(a)(1)(B) or (C)], means that the property |
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has suffered significant structural damage requiring extensive |
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repair due to the failure or partial failure of structural |
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elements, wall elements, or the foundation, or the waterline is at |
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least 18 inches above the floor; or |
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(4) a Level IV damage assessment rating if the |
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property is a total loss, meaning that repair of the property is not |
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feasible. |
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SECTION 2. The amendment made by this Act is a clarification |
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of existing law and does not imply that existing law may be |
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construed as inconsistent with the law as amended by this Act. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2021. |
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