86R5568 TJB-F
 
  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. (a) 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 that
  may be available to an owner;
               (2)  a description of the process for applying for an
  exemption;
               (3)  the documents an owner must submit with an
  application to demonstrate the owner's eligibility for an
  exemption;
               (4)  a list of individuals and organizations able to
  provide free legal assistance to an owner in applying for an
  exemption; and
               (5)  a general description of the process by which an
  owner may record the owner's interest in the heir property in the
  real property records of the county in which the property is
  located.
         (b)  The comptroller shall prepare and maintain a list of
  individuals and organizations described by Subsection (a)(4).
         SECTION 3.  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 4.  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 5.  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 6.  Section 11.43, Tax Code, is amended by amending
  Subsection (o) and adding Subsection (o-1) 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; 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.
         SECTION 7.  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, or appraisal
  review board 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 8.  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 9.  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 10.  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 11.  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 12.  This Act takes effect September 1, 2019.