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A BILL TO BE ENTITLED
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AN ACT
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relating to the exclusion from the market value of real property for |
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ad valorem tax purposes of the value of any incomplete structure |
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located on the property. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 23, Tax Code, is amended by |
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adding Section 23.015 to read as follows: |
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Sec. 23.015. EXCLUSION OF VALUE OF INCOMPLETE STRUCTURE |
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INTENDED FOR HUMAN OCCUPANCY. (a) In determining the market value |
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of real property, the chief appraiser shall exclude from that value |
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the value of any structure located on the property if the structure: |
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(1) is intended for human occupancy; |
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(2) is separate from any other structure located on |
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the property; and |
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(3) is incomplete on January 1 of the tax year for |
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which the chief appraiser determines the market value of the |
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property. |
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(b) For the purpose of this section, a structure is |
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considered complete: |
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(1) on the date a certificate of occupancy or similar |
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document is issued for the structure, if the structure is located in |
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a political subdivision that requires a person to obtain a |
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certificate of occupancy or similar document before the structure |
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may be occupied; or |
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(2) if Subdivision (1) does not apply, on the date the |
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structure is no longer under active construction or other physical |
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preparation necessary for occupancy, as determined by the chief |
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appraiser. |
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SECTION 2. Section 23.015, Tax Code, as added by this Act, |
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applies only to the appraisal of real property for ad valorem tax |
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purposes for an ad valorem tax year that begins on or after the |
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effective date of this Act. |
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SECTION 3. This Act takes effect January 1, 2026. |