Bill Caption

Relating to the reappraisal for ad valorem tax purposes of property damaged in a disaster.

Fiscal Notes

Passage of the bill would require, rather than permit, the reappraisal of property in a disaster area at its market value immediately after the disaster. As a result, taxable property values could be reduced and the related costs to the Foundation School Fund could be increased through the operation of the school finance formulas.

Bill Analysis

Under current law, the governing body of a taxing unit has the option to reappraise property damaged after a disaster.

 

House Bill 513 would require the chief appraiser of the respective appraisal district to reappraise a property in a declared disaster area that the Federal Emergency Management Agency estimates to have sustained five percent or greater damage as a direct result of the disaster. The property owner would maintain the authority to refuse the reappraisal.

 

The Comptroller’s office would be responsible for the implementation and adoption of rules to administer the reappraisal program.

Vote Recommendation Notes

House Bill 513 upholds our property rights principle by ensuring reappraisal of a property significantly damaged in a disaster. Property owners should not have to pay taxes based on a previous valuation after a disaster has clearly diminished the market value of that property. We support requiring a reappraisal to take into account the new market value of a disaster-affected property, therefore we support HB 513.