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A BILL TO BE ENTITLED
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AN ACT
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relating to the limitation of certain special district tax on the |
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homesteads of the disabled and elderly. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 11.261, Tax Code, is amended to read as |
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follows: |
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Sec. 11.261. LIMITATION OF [COUNTY, MUNICIPAL, OR JUNIOR
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COLLEGE] DISTRICT TAX ON HOMESTEADS OF DISABLED AND ELDERLY. (a) |
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"District" is defined as a county, municipality, junior college, |
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regional water district or hospital district. This section applies |
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only to a [county, municipality, or junior college] district that |
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has established a limitation on the total amount of taxes that may |
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be imposed by the [county, municipality, or junior college] |
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district on the residence homestead of a disabled individual or an |
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individual 65 years of age or older under Section 1-b(h), Article |
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VIII, Texas Constitution. |
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(b) The tax officials shall appraise the property to which |
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the limitation applies and calculate taxes as on other property, |
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but if the tax so calculated exceeds the limitation provided by this |
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section, the tax imposed is the amount of the tax as limited by this |
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section, except as otherwise provided by this section. The |
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[county, municipality, or junior college] district may not increase |
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the total annual amount of ad valorem taxes the [county,
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municipality, or junior college] district imposes on the residence |
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homestead of a disabled individual or an individual 65 years of age |
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or older above the amount of the taxes the [county, municipality, or
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junior college]district imposed on the residence homestead in the |
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first tax year, other than a tax year preceding the tax year in |
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which the [county, municipality, or junior college] district |
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established the limitation described by Subsection (a), in which |
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the individual qualified that residence homestead for the exemption |
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provided by Section 11.13(c) for a disabled individual or an |
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individual 65 years of age or older. If the individual qualified |
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that residence homestead for the exemption after the beginning of |
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that first year and the residence homestead remains eligible for |
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the exemption for the next year, and if the [] district taxes |
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imposed on the residence homestead in the next year are less than |
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the amount of taxes imposed in that first year, a [county,
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municipality, or junior college] district may not subsequently |
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increase the total annual amount of ad valorem taxes it imposes on |
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the residence homestead above the amount it imposed on the |
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residence homestead in the year immediately following the first |
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year, other than a tax year preceding the tax year in which the |
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[county, municipality, or junior college] district established the |
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limitation described by Subsection (a), for which the individual |
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qualified that residence homestead for the exemption. |
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(c) If an individual makes improvements to the individual's |
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residence homestead, other than repairs and other than improvements |
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required to comply with governmental requirements, the [county,
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municipality, or junior college] district may increase the amount |
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of taxes on the homestead in the first year the value of the |
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homestead is increased on the appraisal roll because of the |
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enhancement of value by the improvements. The amount of the tax |
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increase is determined by applying the current tax rate to the |
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difference between the appraised value of the homestead with the |
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improvements and the appraised value it would have had without the |
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improvements. A limitation provided by this section then applies |
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to the increased amount of [county, municipal, or junior college] |
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district taxes on the residence homestead until more improvements, |
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if any, are made. |
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(d) A limitation on [county, municipal, or junior college] |
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district tax increases provided by this section expires if on |
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January 1: |
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(1) none of the owners of the structure who qualify for |
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the exemption provided by Section 11.13(c) for a disabled |
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individual or an individual 65 years of age or older and who owned |
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the structure when the limitation provided by this section first |
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took effect is using the structure as a residence homestead; or |
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(2) none of the owners of the structure qualifies for |
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the exemption provided by Section 11.13(c) for a disabled |
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individual or an individual 65 years of age or older. |
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(e) If the appraisal roll provides for taxation of appraised |
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value for a prior year because a residence homestead exemption for |
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disabled individuals or individuals 65 years of age or older was |
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erroneously allowed, the tax assessor for the applicable [county,
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municipality, or junior college] district shall add, as back taxes |
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due as provided by Section 26.09(d), the positive difference, if |
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any, between the tax that should have been imposed for that year and |
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the tax that was imposed because of the provisions of this section. |
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(f) A limitation on tax increases provided by this section |
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does not expire because the owner of an interest in the structure |
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conveys the interest to a qualifying trust as defined by Section |
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11.13(j) if the owner or the owner's spouse is a trustor of the |
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trust and is entitled to occupy the structure. |
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(g) Except as provided by Subsection (c), if an individual |
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who receives a limitation on [county, municipal, or junior college] |
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district tax increases provided by this section subsequently |
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qualifies a different residence homestead in the same [county,
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municipality, or junior college] district for an exemption under |
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Section 11.13, the [county, municipality, or junior college] |
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district may not impose ad valorem taxes on the subsequently |
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qualified homestead in a year in an amount that exceeds the amount |
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of taxes the [county, municipality, or junior college] district |
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would have imposed on the subsequently qualified homestead in the |
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first year in which the individual receives that exemption for the |
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subsequently qualified homestead had the limitation on tax |
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increases provided by this section not been in effect, multiplied |
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by a fraction the numerator of which is the total amount of taxes |
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the [county, municipality, or junior college] district imposed on |
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the former homestead in the last year in which the individual |
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received that exemption for the former homestead and the |
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denominator of which is the total amount of taxes the [county,
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municipality, or junior college] district would have imposed on the |
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former homestead in the last year in which the individual received |
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that exemption for the former homestead had the limitation on tax |
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increases provided by this section not been in effect. |
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(h) An individual who receives a limitation on [county,
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municipal, or junior college] district tax increases under this |
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section and who subsequently qualifies a different residence |
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homestead in the same [county, municipality, or junior college] |
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district for an exemption under Section 11.13, or an agent of the |
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individual, is entitled to receive from the chief appraiser of the |
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appraisal district in which the former homestead was located a |
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written certificate providing the information necessary to |
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determine whether the individual may qualify for a limitation on |
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the subsequently qualified homestead under Subsection (g) and to |
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calculate the amount of taxes the [county, municipality, or junior
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college] district may impose on the subsequently qualified |
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homestead. |
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(i) If an individual who qualifies for a limitation on |
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[county, municipal, or junior college] district tax increases under |
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this section dies, the surviving spouse of the individual is |
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entitled to the limitation on taxes imposed by the [county,
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municipality, or junior college] district on the residence |
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homestead of the individual if: |
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(1) the surviving spouse is disabled or is 55 years of |
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age or older when the individual dies; and |
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(2) the residence homestead of the individual: |
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(A) is the residence homestead of the surviving |
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spouse on the date that the individual dies; and |
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(B) remains the residence homestead of the |
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surviving spouse. |
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(j) If an individual who is 65 years of age or older and |
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qualifies for a limitation on [county, municipal, or junior
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college] district tax increases for the elderly under this section |
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dies in the first year in which the individual qualified for the |
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limitation and the individual first qualified for the limitation |
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after the beginning of that year, except as provided by Subsection |
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(k), the amount to which the surviving spouse's [county, municipal,
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or junior college] district taxes are limited under Subsection (i) |
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is the amount of taxes imposed by the [county, municipality, or
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junior college] district, as applicable, on the residence homestead |
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in that year determined as if the individual qualifying for the |
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exemption had lived for the entire year. |
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(k) If in the first tax year after the year in which an |
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individual who is 65 years of age or older dies under the |
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circumstances described by Subsection (j) the amount of taxes |
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imposed by a [county, municipality, or junior college] district on |
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the residence homestead of the surviving spouse is less than the |
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amount of taxes imposed by the [county, municipality, or junior
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college] district in the preceding year as limited by Subsection |
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(j), in a subsequent tax year the surviving spouse's taxes imposed |
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by the [county, municipality, or junior college] district on that |
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residence homestead are limited to the amount of taxes imposed by |
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the [county, municipality, or junior college] district in that |
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first tax year after the year in which the individual dies. |
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(l) Notwithstanding Subsection (d), a limitation on |
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[county, municipal, or junior college] district tax increases |
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provided by this section does not expire if the owner of the |
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structure qualifies for an exemption under Section 11.13 under the |
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circumstances described by Section 11.135(a). |
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(m) Notwithstanding Subsections (b) and (c), an improvement |
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to property that would otherwise constitute an improvement under |
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Subsection (c) is not treated as an improvement under that |
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subsection if the improvement is a replacement structure for a |
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structure that was rendered uninhabitable or unusable by a casualty |
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or by wind or water damage. For purposes of appraising the property |
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in the tax year in which the structure would have constituted an |
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improvement under Subsection (c), the replacement structure is |
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considered to be an improvement under that subsection only if: |
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(1) the square footage of the replacement structure |
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exceeds that of the replaced structure as that structure existed |
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before the casualty or damage occurred; or |
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(2) the exterior of the replacement structure is of |
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higher quality construction and composition than that of the |
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replaced structure. |
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SECTION 2. This Act takes effect September 1, 2019. |