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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 in an amount determined under Subsection (d) of the |
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appraised value of an improvement to the person's residence |
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homestead that: |
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(1) is completely destroyed by a fire; |
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(2) is a habitable dwelling immediately before the |
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date the fire occurs; and |
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(3) remains uninhabitable for at least 30 days after |
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the date the fire occurs. |
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(c) A person is entitled to an exemption provided by this |
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section only for the tax year in which the fire occurs. |
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(d) The amount of the exemption authorized by this section |
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is calculated by multiplying the appraised value of the improvement |
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for the tax year in which the fire occurs 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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(e) 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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(f) On receipt of an application under Subsection (e), the |
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chief appraiser shall determine whether the improvement that is the |
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subject of the application qualifies for the exemption authorized |
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by this section. In determining whether an improvement qualifies |
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for the exemption authorized by this section, the chief appraiser |
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may rely on information provided by any other source the chief |
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appraiser considers appropriate, including a county fire marshal or |
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an insurance adjuster. |
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(g) If a person becomes entitled to the exemption authorized |
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by 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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SECTION 2. 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 3. 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. |