89R743 RDS-D

By: Hughes S.B. No. 678

A BILL TO BE ENTITLED

AN ACT

relating to the reappraisal for ad valorem taxation purposes of certain property completely destroyed or partially damaged by an accidental fire.

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

SECTION 1. Subchapter A, Chapter 23, Tax Code, is amended by adding Section 23.025 to read as follows:

Sec. 23.025. REAPPRAISAL OF PROPERTY DESTROYED OR DAMAGED BY FIRE. (a) In this section, "qualified property" means real property that is completely destroyed or at least 15 percent damaged by an accidental fire. For purposes of this subsection, "real property" includes a manufactured home as that term is defined by Section 1201.003, Occupations Code, that is used as a dwelling, regardless of whether the owner of the manufactured home elects to treat the manufactured home as real property under Section 1201.2055, Occupations Code.

(b) A property owner may request the chief appraiser of an appraisal district in which a qualified property owned by the property owner and destroyed or damaged by an accidental fire is located to reappraise the property. The owner must make the request in writing not later than the 180th day after the date the fire occurs.

(c) Except as provided by this subsection, the chief appraiser shall reappraise a qualified property if requested to do so by the owner of the property. The chief appraiser is not required to reappraise the property if the property qualifies for an exemption under Section 11.35 as the result of the same fire.

(d) The comptroller, in consultation with appraisal districts, shall develop guidelines for determining the process for reappraising property under this section, including for determining whether a property is a qualified property and for calculating an appropriate value of any exemption and appraisal limitation applied during or after the tax year for which the property is reappraised.

(e) The chief appraiser shall complete the reappraisal of property as soon as practicable after a request is made.

(f) The chief appraiser shall include in the appraisal records:

(1) the date the fire occurred;

(2) the appraised value of the property before the fire occurred;

(3) the appraised value of the property immediately after the fire occurred; and

(4) any other information required to be included in the records.

(g) The amount of the taxes imposed by a taxing unit on property reappraised under this section for the tax year in which a fire occurs is calculated by:

(1) multiplying the amount of the taxes that otherwise would be imposed by the taxing unit on the property for the entire year by a fraction, the denominator of which is 365 and the numerator of which is the number of days that elapsed before the date the fire occurred;

(2) multiplying the amount of the taxes that would be imposed by the taxing unit on the property for the entire year based on the reappraised value of the property by a fraction, the denominator of which is 365 and the numerator of which is the number of days, including the date the fire occurred, remaining in the tax year; and

(3) adding the amounts calculated under Subdivisions (1) and (2).

(h) If property is reappraised under this section, the assessor for each taxing unit shall calculate the amount of the tax due on the property as provided by this section. If the property is reappraised after the amount of the tax due on the property is calculated, the assessor 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.

SECTION 2. Not later than January 1, 2026, the comptroller shall develop guidelines required by Section 23.025, Tax Code, as added by this Act, and shall distribute those guidelines to each appraisal district.

SECTION 3. The change in law made by this Act applies to the reappraisal of property destroyed or damaged by an accidental fire only if the fire occurs on or after January 1, 2026.

SECTION 4. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2025.