By: Bucy H.B. No. 4618
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to a temporary exemption for a residence homestead
  rendered uninhabitable.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 11, Property Tax Code, is amended by
  adding Section 11.36 to read as follows:
         Section 11.36.  TEMPORARY EXEMPTION FOR RESIDENCE HOMESTEAD
  RENDERED UNINHABITABLE.
         (a)  In this section:
               (1)  "Damage" means physical damage.
               (2)  "Qualified property" means an improvement to real
  property:
                     (A)  that a person owns and has qualified as his
  residence homestead and that receives an exemption under Section
  11.13; and
                     (B)  that has been rendered uninhabitable because
  of physical damage but that is not located in an area the governor
  has declared a disaster area.
         (b)  A person is entitled to an exemption from taxation by a
  taxing unit of a portion of the appraised value of qualified
  property that the person owns in an amount determined under
  Subsection (e}.
         (c)  On receipt of an application for the exemption
  authorized by this section, the chief appraiser shall determine
  whether any item of qualified property that is the subject of the
  application has been rendered uninhabitable and assign to each such
  item of qualified property a damage assessment rating of Level I,
  Level II, or Level III, as appropriate, as provided by Subsection
  (d).
         (d)  The chief appraiser shall assign to an item of qualified
  property:
               (1)  a Level I damage assessment rating if the property
  is at least 30 percent, but less than 60 percent, damaged, meaning
  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;
               (2)  a Level II damage assessment rating if the
  property is at least 60 percent damaged but is not a total loss,
  meaning 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, if any, is at least 18 inches above the floor; or
               (3)  a Level III damage assessment rating if the
  property is a total loss, meaning that repair of the property is not
  feasible.
         (e)  Subject to Subsection (f), the amount of the exemption
  authorized by this section for an item of qualified property is
  determined by multiplying the appraised value, determined for the
  tax year in which the disaster occurred, of the property by:
               (1)  30 percent, if the property is assigned a Level I
  damage assessment rating;
               (2)  60 percent, if the property is assigned a Level II
  damage assessment rating; or
               (3)  100 percent, if the property is assigned a Level
  III damage assessment rating.
         (f)  If a person qualifies for the exemption authorized by
  this section after the beginning of the tax year, the amount of the
  exemption is calculated by multiplying the amount determined under
  Subsection (e) by a fraction, the denominator of which is 365 and
  the numerator of which is the number of days remaining in the tax
  year after the day on which the person's qualified property is
  damaged, including the day on which the damage occurred.
         (g)  If a person qualifies for the exemption authorized by
  this section after the amount of the tax due on the qualified
  property is calculated and the effect of the qualification is to
  reduce the amount of the tax due on the property, the assessor for
  each applicable taxing unit shall recalculate the amount of the tax
  due on the property and correct the tax roll. If the tax bill has
  been mailed and the tax on the property has not been paid, the
  assessor shall mail a corrected tax bill to the person in whose name
  the property is listed on the tax roll or to the person's authorized
  agent. If the tax on the property has been paid, the tax collector
  for the taxing unit shall refund to the person who paid the tax the
  amount by which the payment exceeded the tax due. No interest is
  due on an amount refunded under this subsection.
         (h)  The exemption authorized by this section expires as to
  an item of qualified property on January 1 of the first tax year in
  which the property is reappraised under Section 25.18.
         SECTION 2.  The exemption provided by this action applies
  only to an application received on or after the effective date of
  this section.
         SECTION 3.  This Act takes effect September 1, 2023.