85R8291 TJB-D     By: Lozano H.B. No. 2241       A BILL TO BE ENTITLED   AN ACT   relating to the treatment of a replacement structure for a   structure that was rendered uninhabitable or unusable by a casualty   or by wind or water damage as a new improvement for ad valorem tax   purposes.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 11.26(o), Tax Code, is amended to read as   follows:          (o)  Notwithstanding Subsections (a), (a-3), and (b), an   improvement to property that would otherwise constitute an   improvement under Subsection (b) is not treated as an improvement   under that subsection if the improvement is a replacement structure   for a structure that was rendered uninhabitable or unusable by a   casualty or by wind or water damage.  For purposes of appraising   the property in the tax year in which the structure would have   constituted an improvement under Subsection (b), the replacement   structure is considered to be an improvement under that subsection   only if[:                [(1)]  the square footage of the replacement structure   exceeds that of the replaced structure as that structure existed   before the casualty or damage occurred[; or                [(2)     the exterior of the replacement structure is of   higher quality construction and composition than that of the   replaced structure].          SECTION 2.  Section 11.261(m), Tax Code, is amended to read   as follows:          (m)  Notwithstanding Subsections (b) and (c), an improvement   to property that would otherwise constitute an improvement under   Subsection (c) is not treated as an improvement under that   subsection if the improvement is a replacement structure for a   structure that was rendered uninhabitable or unusable by a casualty   or by wind or water damage.  For purposes of appraising the   property in the tax year in which the structure would have   constituted an improvement under Subsection (c), the replacement   structure is considered to be an improvement under that subsection   only if[:                [(1)]  the square footage of the replacement structure   exceeds that of the replaced structure as that structure existed   before the casualty or damage occurred[; or                [(2)     the exterior of the replacement structure is of   higher quality construction and composition than that of the   replaced structure].          SECTION 3.  Sections 23.23(f) and (g), Tax Code, are amended   to read as follows:          (f)  Notwithstanding Subsections (a) and (e) and except as   provided by Subdivision (2), an improvement to property that would   otherwise constitute a new improvement is not treated as a new   improvement if the improvement is a replacement structure for a   structure that was rendered uninhabitable or unusable by a casualty   or by wind or water damage.  For purposes of appraising the   property under Subsection (a) in the tax year in which the structure   would have constituted a new improvement:                (1)  the appraised value the property would have had in   the preceding tax year if the casualty or damage had not occurred is   considered to be the appraised value of the property for that year,   regardless of whether that appraised value exceeds the actual   appraised value of the property for that year as limited by   Subsection (a); and                (2)  the replacement structure is considered to be a   new improvement only if[:                      [(A)]  the square footage of the replacement   structure exceeds that of the replaced structure as that structure   existed before the casualty or damage occurred[; or                      [(B)     the exterior of the replacement structure is   of higher quality construction and composition than that of the   replaced structure].          (g)  In this subsection, "disaster recovery program" means   the disaster recovery program administered by the General Land   Office that is funded with community development block grant   disaster recovery money authorized by the Consolidated Security,   Disaster Assistance, and Continuing Appropriations Act, 2009 (Pub.   L. No. 110-329) and the Consolidated and Further Continuing   Appropriations Act, 2012 (Pub. L. No. 112-55).  Notwithstanding   Subsection (f)(2), and only to the extent necessary to satisfy the   requirements of the disaster recovery program, a replacement   structure described by that subdivision is not considered to be a   new improvement if to satisfy the requirements of the disaster   recovery program it was necessary that[:                [(1)]  the square footage of the replacement structure   exceed that of the replaced structure as that structure existed   before the casualty or damage occurred[; or                [(2)     the exterior of the replacement structure be of   higher quality construction and composition than that of the   replaced structure].          SECTION 4.  This Act applies only to ad valorem taxes imposed   for a tax year beginning on or after the effective date of this Act.          SECTION 5.  This Act takes effect January 1, 2018.