Relating to a temporary exemption from ad valorem taxation of the appraised value of an improvement to a residence homestead that is completely destroyed by a fire, the official text

S.B. No. 467

AN ACT

relating to a temporary exemption from ad valorem taxation of the

appraised value of an improvement to a residence homestead that is

completely destroyed by a fire.

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

SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by

adding Section 11.351 to read as follows:

Sec. 11.351. TEMPORARY EXEMPTION FOR IMPROVEMENT TO

RESIDENCE HOMESTEAD DESTROYED BY FIRE. (a) In this section,

"residence homestead" has the meaning assigned by Section 11.13.

(b) A person is entitled to an exemption from taxation by a

taxing unit in an amount determined under Subsection (d) of the

appraised value of an improvement to the person's residence

homestead that:

(1) is completely destroyed by a fire;

(2) is a habitable dwelling immediately before the

date the fire occurs; and

(3) remains uninhabitable for at least 30 days after

the date the fire occurs.

(c) A person is entitled to an exemption provided by this

section only for the tax year in which the fire occurs.

(d) The amount of the exemption authorized by this section

is calculated by multiplying the appraised value of the improvement

for the tax year in which the fire occurs by a fraction, the

denominator of which is 365 and the numerator of which is the number

of days remaining in the tax year after the date on which the fire

occurs.

(e) A property owner must submit an application for an

exemption authorized by this section to the chief appraiser of the

appraisal district in which the improvement that is the subject of

the application is located not later than the 180th day after the

date the fire occurs.

(f) On receipt of an application under Subsection (e), the

chief appraiser shall determine whether the improvement that is the

subject of the application qualifies for the exemption authorized

by this section. In determining whether an improvement qualifies

for the exemption authorized by this section, the chief appraiser

may rely on information provided by any other source the chief

appraiser considers appropriate, including a county fire marshal or

an insurance adjuster.

(g) If a person becomes entitled to the exemption authorized

by this section after the amount of tax due on the property is

calculated and the effect of the qualification is to reduce the

amount of the tax due on the property, the assessor for each

applicable taxing unit 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. The change in law made by this Act applies only

to an ad valorem tax year that begins on or after the effective date

of this Act.

SECTION 3. 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 temporary exemption from ad valorem taxation of the appraised

value of an improvement to a residence homestead that is completely

destroyed by a fire is approved by the voters. If that amendment is

not approved by the voters, this Act has no effect.

______________________________
______________________________

President of the Senate
Speaker of the House

I hereby certify that S.B. No. 467 passed the Senate on

April 29, 2025, by the following vote: Yeas 31, Nays 0; and that

the Senate concurred in House amendment on May 30, 2025, by the

following vote: Yeas 31, Nays 0.

______________________________

Secretary of the Senate

I hereby certify that S.B. No. 467 passed the House, with

amendment, on May 27, 2025, by the following vote: Yeas 140,

Nays 0, two present not voting.

______________________________

Chief Clerk of the House

Approved:

______________________________

Date

______________________________

Governor