By: Bettencourt  S.B. No. 1427
         (In the Senate - Filed March 10, 2021; March 18, 2021, read
  first time and referred to Committee on Local Government;
  April 21, 2021, reported favorably by the following vote:  Yeas 9,
  Nays 0; April 21, 2021, sent to printer.)
Click here to see the committee vote
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the applicability of the temporary exemption from ad
  valorem taxation of a portion of the appraised value of certain
  property damaged by a disaster.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Sections 11.35(a) and (g), Tax Code, are amended
  to read as follows:
         (a)  In this section:
               (1)  "Damage" means physical damage.
               (2)  "Qualified[, "qualified] property" means property
  that:
                     (A) [(1)]  consists of:
                           (i) [(A)]  tangible personal property used
  for the production of income;
                           (ii) [(B)]  an improvement to real property;
  or
                           (iii) [(C)]  a manufactured home as that
  term is defined by Section 1201.003, Occupations Code, that is used
  as a dwelling, regardless of whether the owner of the manufactured
  home elects to treat the manufactured home as real property under
  Section 1201.2055, Occupations Code;
                     (B) [(2)]  is located in an area declared by the
  governor to be a disaster area following a disaster;
                     (C) [(3)]  is at least 15 percent damaged by the
  disaster, as determined by the chief appraiser under this section;
  and
                     (D) [(4)]  for property described by Paragraph
  (A)(i) [Subdivision (1)(A)], is the subject of a rendition
  statement or property report filed by the property owner under
  Section 22.01 that demonstrates that the property had taxable situs
  in the disaster area for the tax year in which the disaster
  occurred.
         (g)  The chief appraiser shall assign to an item of qualified
  property:
               (1)  a Level I damage assessment rating if the property
  is at least 15 percent, but less than 30 percent, damaged, meaning
  that the property suffered minimal damage and may continue to be
  used as intended;
               (2)  a Level II damage assessment rating if the
  property is at least 30 percent, but less than 60 percent, damaged,
  which, for qualified property described by Subsection
  (a)(2)(A)(ii) or (iii) [(a)(1)(B) or (C)], means that the property
  has suffered only nonstructural damage, including nonstructural
  damage to the roof, walls, foundation, or mechanical components,
  and the waterline, if any, is less than 18 inches above the floor;
               (3)  a Level III damage assessment rating if the
  property is at least 60 percent damaged but is not a total loss,
  which, for qualified property described by Subsection
  (a)(2)(A)(ii) or (iii) [(a)(1)(B) or (C)], means that the property
  has suffered significant structural damage requiring extensive
  repair due to the failure or partial failure of structural
  elements, wall elements, or the foundation, or the waterline is at
  least 18 inches above the floor; or
               (4)  a Level IV damage assessment rating if the
  property is a total loss, meaning that repair of the property is not
  feasible.
         SECTION 2.  The amendment made by this Act is a clarification
  of existing law and does not imply that existing law may be
  construed as inconsistent with the law as amended by this Act.
         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, 2021.
 
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