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 or unusable by a casualty or by wind or water damage.

Fiscal Notes

No significant fiscal implication to the State is anticipated.

Bill Analysis

Under current law, a homeowner whose home was rendered uninhabitable due to a disaster may be eligible for reconstruction grants from certain federal block grant funds administered by the General Land Office. Property that is replaced or reconstructed with grants from these funds may not be appraised at a higher value than the property as it existed before it was destroyed by the disaster provided certain conditions are met.

HB 1842 would broaden the definition of the term "disaster recovery program" to include any disaster recovery program "that is funded with community development block grant disaster recovery money authorized by federal law" and administered by the General Land Office or any political subdivision of the state. This would have the effect of protecting more rebuilt disaster-affected homes from having the replacement structures counted as new improvements for the purposes of making an appraisal to assess property taxes.

Vote Recommendation Notes

Texas Action recommends supporting HB 1842 because it promotes limited government and property rights. This bill would protect disaster victims from exorbitant, unfair property taxes and prevent them from being taxed out of their rebuilt homes.