SB 835

83(R) - 2013
Ways & Means

Vote Recommendation

  • Neutral
  • Positive
  • Neutral
  • Positive
  • Neutral


Eddie Lucio Jr.

Bill Caption

Relating to the application of the limit on appraised value of a residence homestead for ad valorem tax purposes to an improvement that is a replacement structure for a structure that was rendered uninhabitable.

Fiscal Notes

The bill's provision that certain replacement structures with increased square footage or higher construction quality not be considered new improvements would create a cost to the state through the operation of the school funding formula because such structures would be subject to the 10 percent limitation on homestead appraised value increases while under current law they are not.

Bill Analysis

Summary: Currently, Texas law provides that property taxes on a residence homestead cannot increase, from year to year, by more than 10% of the homestead’s appraised value for the preceding tax year. This cap does not apply to improvements made on property, such as the addition of a new structure or remodeling of an exterior. This means improvements made to homes damaged in a natural disaster are not afforded this cap, and the property taxes levied can increase by more than 10%. SB 835 would extend this 10% cap to homes built according to a disaster recovery program operated by Texas’ General Land Office if the homes were required by the program to be bigger than the destroyed home, or of a higher quality.

Analysis: We support SB 835 because it will cap the amount of property taxes that can be assessed on homes improved by the General Land Office’s disaster recovery program, and promote the property rights of those who live in these homes by allowing them to retain more of their resources.