BILL ANALYSIS

H.B. 331

By: Davis, Sarah

Ways & Means

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Observers note that although state law authorizes a taxing unit within a declared disaster area to authorize reappraisal of all property damaged in the disaster at its market value immediately after the disaster, not all taxing jurisdictions may elect to reappraise damaged properties in that manner. H.B. 331 seeks to ensure that homes damaged in a disaster are appraised and taxed fairly by requiring all property estimated to have sustained five percent or greater damage as a result of a disaster to be reappraised at market value immediately after the disaster.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is expressly granted to the comptroller of public accounts in SECTION 1 of this bill.

ANALYSIS

H.B. 331 amends the Tax Code to replace the authority of a governing body of a taxing unit that is located partly or entirely inside an area declared a disaster area by the governor to authorize the reappraisal of all property damaged in the disaster at its market value immediately after the disaster with the requirement that the chief appraiser of an appraisal district that appraises property for such a taxing unit reappraise all property that the Federal Emergency Management Agency (FEMA) or its successor agency estimates to have sustained five percent or greater damage as a result of the disaster in that manner. The bill requires that reappraisal to be completed not later than the 45th day after the date the governor declares the area to be a disaster area and authorizes a property owner to refuse to have the owner's property reappraised. The bill requires the chief appraiser, if FEMA or its successor agency does not complete the damage estimates on or before the deadline for completing the reappraisal, to complete the reappraisal as soon as practicable after FEMA's damage estimates are completed. The bill authorizes the comptroller of public accounts to adopt rules to implement and administer provisions regarding the reappraisal of property damaged in a disaster area.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, December 1, 2017.