SB678 - Relating to the reappraisal for ad valorem taxation purposes of certain property completely destroyed or partially damaged by an accidental fire.

  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.