By: Watson S.B. No. 1943
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the ad valorem taxation of heir property.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 1.04, Tax Code, is amended by adding
  Subdivisions (20) and (21) to read as follows:
               (20)  "Heir property" means real property:
                     (A)  owned by one or more individuals, at least
  one of whom claims the property as the individual's residence
  homestead; and
                     (B)  acquired by the owner or owners by will,
  transfer on death deed, or intestacy, regardless of whether the
  interests of the owners are recorded in the real property records of
  the county in which the property is located.
               (21)  "Heir property owner" means an owner of heir
  property who claims the property as the individual's residence
  homestead.
         SECTION 2.  Chapter 5, Tax Code, is amended by adding Section
  5.061 to read as follows:
         Sec. 5.061.  EXPLANATION OF INFORMATION RELATED TO HEIR
  PROPERTY. The comptroller shall prepare and electronically publish
  a pamphlet that provides information to assist heir property owners
  in applying for a residence homestead exemption authorized by
  Chapter 11.  The pamphlet must include:
               (1)  a list of the residence homestead exemptions
  authorized by Chapter 11;
               (2)  a description of the process for applying for an
  exemption as prescribed by Section 11.43;
               (3)  a description of the documents an owner is
  required by Section 11.43(o) to submit with an application to
  demonstrate the owner's ownership of an interest in heir property;
               (4)  contact information for the division of the State
  Bar of Texas from which a person may obtain a listing of individuals
  and organizations available to provide free or reduced-fee legal
  assistance; and
               (5)  a general description of the process by which an
  owner may record the owner's interest in heir property in the real
  property records of the county in which the property is located.
         SECTION 3.  Section 11.13(h), Tax Code, is amended to read as
  follows:
         (h)  Joint, community, or successive owners may not each
  receive the same exemption provided by or pursuant to this section
  for the same residence homestead in the same year. An eligible
  disabled person who is 65 or older may not receive both a disabled
  and an elderly residence homestead exemption but may choose either.
  A person may not receive an exemption under this section for more
  than one residence homestead in the same year.  An heir property
  owner who qualifies heir property as the owner's residence
  homestead under this chapter is considered the sole recipient of
  any exemption granted to the owner for the residence homestead by or
  pursuant to this section.
         SECTION 4.  Section 11.26, Tax Code, is amended by adding
  Subsection (p) to read as follows:
         (p)  An heir property owner who qualifies heir property as
  the owner's residence homestead under this chapter is considered
  the sole owner of the property for the purposes of this section.
         SECTION 5.  Section 11.261, Tax Code, is amended by adding
  Subsection (n) to read as follows:
         (n)  An heir property owner who qualifies heir property as
  the owner's residence homestead under this chapter is considered
  the sole owner of the property for the purposes of this section.
         SECTION 6.  Section 11.41, Tax Code, is amended by adding
  Subsection (c) to read as follows:
         (c)  An heir property owner who qualifies heir property as
  the owner's residence homestead under this chapter is considered
  the sole owner of the property for the purposes of this section.
         SECTION 7.  Section 11.43, Tax Code, is amended by amending
  Subsection (o) and adding Subsections (o-1) and (o-2) to read as
  follows:
         (o)  The application form for a residence homestead [an]
  exemption [authorized by Section 11.13] must require an applicant
  [for an exemption under Subsection (c) or (d) of that section] who
  is not specifically identified on a deed or other appropriate
  instrument recorded in the [applicable] real property records of
  the county in which the property is located as an owner of the
  residence homestead, including an heir property owner, to provide:
               (1)  an affidavit [or other compelling evidence]
  establishing the applicant's ownership of an interest in the
  property;
               (2)  a copy of the death certificate of the prior owner
  of the property, if the applicant is an heir property owner;
               (3)  a copy of the most recent utility bill for the
  property, if the applicant is an heir property owner; and
               (4)  a citation of any court record relating to the
  applicant's ownership of the property if available [homestead].
         (o-1)  The application form for a residence homestead
  exemption may not require an heir property owner to provide a copy
  of an instrument recorded in the real property records of the county
  in which the property is located.
         (o-2)  The application form for a residence homestead
  exemption must require:
               (1)  an applicant who is an heir property owner to state
  that the property for which the application is submitted is heir
  property; and
               (2)  each owner of an interest in heir property who
  occupies the property as the owner's principal residence, other
  than the applicant, to provide an affidavit that authorizes the
  submission of the application.
         SECTION 8.  Subchapter C, Chapter 11, Tax Code, is amended by
  adding Section 11.49 to read as follows:
         Sec. 11.49.  LEGAL TITLE NOT AFFECTED. (a)  The grant or
  denial of an application by an heir property owner for a residence
  homestead exemption under this chapter does not affect the legal
  title of the property subject to the application and does not
  operate to transfer title to that property.
         (b)  An appraisal district, chief appraiser, appraisal
  review board, or county assessor-collector may not be made a party
  to a proceeding to adjudicate ownership of property described by
  Subsection (a) except as prescribed by this title.
         SECTION 9.  Section 33.06, Tax Code, is amended by adding
  Subsection (h) to read as follows:
         (h)  An heir property owner who qualifies heir property as
  the owner's residence homestead under Chapter 11 is considered the
  sole owner of the property for the purposes of this section.
         SECTION 10.  Section 33.065, Tax Code, is amended by adding
  Subsection (j) to read as follows:
         (j)  An heir property owner who qualifies heir property as
  the owner's residence homestead under Chapter 11 is considered the
  sole owner of the property for the purposes of this section.
         SECTION 11.  Not later than January 1, 2020, the comptroller
  of public accounts shall make available the pamphlet required by
  Section 5.061, Tax Code, as added by this Act.
         SECTION 12.  The changes in law made by this Act apply only
  to an ad valorem tax year that begins on or after the effective date
  of this Act.
         SECTION 13.  This Act takes effect September 1, 2019.