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78R3110 SMH-D

By:  Noriega                                                      H.B. No. 416



A BILL TO BE ENTITLED

AN ACT

relating to the reappraisal for ad valorem tax purposes of property  
damaged in a natural disaster.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 23.02, Tax Code, is amended to read as 
follows:          
	Sec. 23.02.  REAPPRAISAL OF PROPERTY DAMAGED IN NATURAL 
DISASTER AREA.  (a)  The chief appraiser of an appraisal district 
that appraises property for [The governing body of] a taxing unit 
that is located partly or entirely inside an area declared to be a 
natural disaster area by the governor shall reappraise [may 
authorize reappraisal of] all property damaged in the disaster at 
its market value immediately after the disaster.
	(b)  The chief appraiser [If a taxing unit authorizes a 
reappraisal pursuant to this section, the appraisal office] shall 
complete the reappraisal as soon as practicable.  The chief 
appraiser [appraisal office] shall include on the appraisal 
records, in addition to other information required or authorized by 
law:
		(1)  the date of the disaster; and                                     
		(2)  the appraised value of the property after the 
disaster[;  and
		[(3) if the reappraisal is not authorized by all taxing 
units in which the property is located, an indication of the taxing 
units to which the reappraisal applies].
	(c)  A taxing unit for which property is reappraised [that 
authorizes a reappraisal] under this section must pay the appraisal 
district all the costs of making the reappraisal.  If property in 
the same territory is reappraised for two or more taxing units 
[provide for the reappraisal in the same territory], each unit 
shall share the costs of the reappraisal in that territory in the 
proportion the total dollar amount of taxes each unit imposed in 
that territory in the preceding year bears to the total dollar 
amount of taxes all units [providing for reappraisal of that 
territory] imposed in that territory in the preceding year.
	(d)  If property damaged in a natural disaster is reappraised 
for a taxing unit as provided by this section, the governing body of 
the taxing unit shall provide for prorating the taxes on the 
property for the year in which the disaster occurred.  The [If the 
taxes are] prorated[,] taxes due on the property are determined as 
follows:  the taxes on the property based on its value on January 1 
of that year are multiplied by a fraction, the denominator of which 
is 365 and the numerator of which is the number of days before the 
date the disaster occurred; the taxes on the property based on its 
reappraised value are multiplied by a fraction, the denominator of 
which is 365 and the numerator of which is the number of days, 
including the date the disaster occurred, remaining in the year; 
and the total of the two amounts is the amount of taxes on the 
property for the year.
	SECTION 2.  The change in law made by this Act applies only 
to the reappraisal of property located in an area that is declared 
to be a natural disaster area by the governor on or after the 
effective date of this Act.  The reappraisal of property located in 
an area that was declared to be a natural disaster area by the 
governor before the effective date of this Act is governed by the 
law as it existed immediately before the effective date of this Act, 
and that law is continued in effect for that purpose.
	SECTION 3.  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, 2003.