89R1062 DRS-D

By: Schofield H.B. No. 5522

A BILL TO BE ENTITLED

AN ACT

relating to the unauthorized occupancy of real property and a credit against the ad valorem taxes imposed on the real property; creating a criminal offense.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 30, Penal Code, is amended by adding Section 30.08 to read as follows:

Sec. 30.08. SQUATTING. (a) A person commits an offense if the person:

(1) occupies the property of another without the effective consent of the owner or other person authorized by a lease or other agreement to occupy the property; and

(2) knows or reasonably should know that the person does not have the effective consent of the owner or other person authorized by a lease or other agreement to occupy the property.

(b) An offense under this section is a Class A misdemeanor, except that the offense is:

(1) a state jail felony if it is shown on the trial of the offense that the defendant has previously been convicted one time of an offense under this section; or

(2) a felony of the third degree if it is shown on the trial of the offense that the defendant has previously been convicted two or more times of an offense under this section.

SECTION 2. Title 4, Property Code, is amended by adding Chapter 24B to read as follows:

CHAPTER 24B. PROPERTY OWNER REMEDIES FOR UNAUTHORIZED OCCUPANCY OF

REAL PROPERTY

Sec. 24B.001. ACTION FOR INJUNCTIVE RELIEF. Notwithstanding any other law, if a person entered and is occupying real property without the consent of the owner or the person authorized by a lease or other agreement to occupy the property, the property owner may bring an action in a court of competent jurisdiction in the county in which the property is located to restrain the person from occupying the property by a temporary restraining order or by a permanent or temporary injunction.

Sec. 24B.002. MANDAMUS. A property owner may seek a writ of mandamus from a court of competent jurisdiction:

(1) to compel a district attorney, criminal district attorney, or county attorney who fails or refuses to prosecute conduct constituting an offense under Section 30.08, Penal Code, to transfer prosecution of the offense to the appropriate prosecutor in an adjoining county; or

(2) to compel a court that fails or refuses to set a date for hearing an action brought by a property owner under Section 24B.001 to initiate or resume proceedings in the case.

SECTION 3. Chapter 31, Tax Code, is amended by adding Section 31.039 to read as follows:

Sec. 31.039. TAX CREDIT FOR UNAUTHORIZED OCCUPANCY OF REAL PROPERTY. (a) A person who owns real property that during all or a portion of a tax year is occupied by a person who entered the property without the consent of the owner is entitled to a credit against the taxes imposed on the property by each taxing unit that taxes the property.

(b) The amount of the credit to which a property owner is entitled under this section against the taxes imposed on the property by a taxing unit in a tax year is:

(1) if the chief appraiser determines that the property was occupied by a person who entered the property without the consent of the owner for a period of six months or less in the tax year, the amount computed by:

(A) dividing the amount of taxes imposed on the property by the taxing unit in the tax year by 12;

(B) multiplying the quotient computed under Paragraph (A) by two;

(C) multiplying the quotient computed under Paragraph (A) by the number of months for which the chief appraiser determines that the property was occupied by the person for all or part of the month; and

(D) adding the product computed under Paragraph (B) to the product computed under Paragraph (C); or

(2) if the chief appraiser determines that the property was occupied by a person who entered the property without the consent of the owner for more than six months in the tax year, an amount equal to the total amount of taxes imposed on the property by the taxing unit in the tax year.

(c) To receive a credit under this section, a property owner must:

(1) file an application with the chief appraiser of the appraisal district in which the property is located; and

(2) submit with the application evidence sufficient to establish that the owner is entitled to the credit.

(d) The chief appraiser shall approve or deny an application under this section for each taxing unit for which the appraisal district appraises property. A determination of the chief appraiser is subject to protest and appeal in the same manner as a determination to approve or deny an application for an exemption.

(e) The chief appraiser shall forward a copy of the application to the assessor for each taxing unit that imposes taxes on the property and certify to the assessor whether the chief appraiser has approved or denied the application.

(f) The comptroller shall adopt rules for the administration of this section, including rules prescribing the form of an application for the credit.

SECTION 4. Section 31.039, Tax Code, as added by this Act, applies only to ad valorem taxes imposed for a tax year beginning on or after the effective date of this Act.

SECTION 5. (a) Except as provided by Subsection (b) of this section, this Act takes effect September 1, 2025.

(b) Section 31.039, Tax Code, as added by this Act, takes effect January 1, 2026, but only if the constitutional amendment proposed by the 89th Legislature, Regular Session, 2025, to authorize the legislature to provide for a credit against the ad valorem taxes imposed on real property occupied by a person who entered the property without the consent of the owner is approved by the voters. If that amendment is not approved by the voters, Section 31.039, Tax Code, as added by this Act, has no effect.