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A BILL TO BE ENTITLED
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AN ACT
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relating to a temporary exemption from ad valorem taxation of the |
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appraised value of an improvement to a residence homestead that is |
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completely destroyed by a fire. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by |
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adding Section 11.351 to read as follows: |
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Sec. 11.351. TEMPORARY EXEMPTION FOR IMPROVEMENT TO |
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RESIDENCE HOMESTEAD DESTROYED BY FIRE. (a) In this section, |
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"residence homestead" has the meaning assigned by Section 11.13. |
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(b) A person is entitled to an exemption from taxation by a |
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taxing unit of the appraised value of an improvement to the person's |
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residence homestead that is completely destroyed by a fire in an |
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amount determined under Subsection (c). The person is entitled to |
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the exemption only for the tax year in which the fire occurs. |
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(c) The amount of the exemption authorized by this section |
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for an improvement to a residence homestead completely destroyed by |
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a fire in a tax year is calculated by multiplying the appraised |
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value of the improvement for that tax year by a fraction, the |
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denominator of which is 365 and the numerator of which is the number |
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of days remaining in the tax year after the date on which the fire |
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occurs. |
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(d) A property owner must submit an application for an |
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exemption authorized by this section to the chief appraiser of the |
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appraisal district in which the improvement that is the subject of |
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the application is located not later than the 180th day after the |
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date the fire occurs. |
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(e) On receipt of an application under Subsection (d), the |
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chief appraiser shall determine whether the improvement that is the |
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subject of the application was completely destroyed by a fire. In |
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determining whether an improvement is completely destroyed by a |
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fire, the chief appraiser may rely on information provided by any |
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other source the chief appraiser considers appropriate, including a |
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county fire marshal or an insurance adjuster. |
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(f) If a person qualifies for the exemption authorized by |
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this section after the amount of tax due on the property is |
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calculated and the effect of the qualification is to reduce the |
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amount of the tax due on the property, the assessor for each |
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applicable taxing unit shall recalculate the amount of the tax due |
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on the property and correct the tax roll. If the tax bill has been |
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mailed and the tax on the property has not been paid, the assessor |
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shall mail a corrected tax bill to the person in whose name the |
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property is listed on the tax roll or to the person's authorized |
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agent. If the tax on the property has been paid, the tax collector |
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for the taxing unit shall refund to the person who paid the tax the |
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amount by which the payment exceeded the tax due. |
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(g) The comptroller, in consultation with appraisal |
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districts, shall develop guidelines for determining whether an |
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improvement is completely destroyed by a fire. |
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SECTION 2. Not later than September 1, 2026, the |
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comptroller shall develop the guidelines required by Section |
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11.351, Tax Code, as added by this Act, and shall distribute those |
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guidelines to each appraisal district. |
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SECTION 3. The change in law made by this Act applies only |
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to an ad valorem tax year that begins on or after the effective date |
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of this Act. |
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SECTION 4. This Act takes effect January 1, 2026, but only |
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if the constitutional amendment proposed by the 89th Legislature, |
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Regular Session, 2025, to authorize the legislature to provide for |
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a temporary exemption from ad valorem taxation of the appraised |
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value of an improvement to a residence homestead that is completely |
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destroyed by a fire is approved by the voters. If that amendment is |
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not approved by the voters, this Act has no effect. |