Focus Report, Volume 86, Number 3, August 2019 Page: 9
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* Proposition 3: Allowing temporary
property tax exemptions after a disaster
HJR 34 by Shine (Bettencourt)Supporters say
Tax Code sec. 23.02 allows a taxing unit located
partly or entirely in an area declared by the governor to
be a disaster area to authorize the reappraisal of property
damaged in the disaster at its market value immediately
after the disaster. If the taxing unit authorizes a reappraisal,
the appraisal office must complete it as soon as practicable
and pay the appraisal district all the costs of the
reappraisal. Property that is reappraised must be provided
prorated taxes based on the date the disaster occurred.
Texas Constitution Art. 8, sec. 1 requires taxation
to be equal and uniform and that all real and tangible
personal property be taxed in proportion to its value unless
otherwise exempt by the constitution. Sec. 2 allows the
Legislature to exempt property from taxation in certain
cases. Laws exempting property from taxes other than
those listed are null and void.
Digest
Proposition 3 would amend Texas Constitution Art.
8, sec. 2 to allow the Legislature by general law to provide
that a person who owned property in a governor-declared
disaster area was entitled to a temporary exemption from
property taxes by a political subdivision for a portion of
the property's appraised value. The law could provide that
if the disaster was declared on or after the date the political
subdivision adopted a tax rate for the year, a person
would be entitled to the exemption for that year only if
the exemption was adopted by the governing body of the
political subdivision. The Legislature could prescribe the
method of determining the amount and duration of the
exemption, as well as any other eligibility requirements.
The ballot proposal reads: "The constitutional
amendment authorizing the legislature to provide for
a temporary exemption from ad valorem taxation of a
portion of the appraised value of certain property damaged
by a disaster."Proposition 3 is necessary to enable the Legislature
to pass laws entitling individuals to a temporary tax
exemption for properties damaged by a disaster.
Under HB 492, the enabling legislation that
would take effect if Proposition 3 was approved by
the voters, such an exemption would give taxing units
a less expensive, easier.to administer, and more easily
understood method for providing relief to taxpayers
harmed by a disaster than does the current method of
disaster reappraisal. Under current law, a taxing unit may,
but is not required to, authorize property reappraisal after
a disaster.. Many choose not to allow reappraisals. If a
taxing unit does allow reappraisals, appraisal districts must
use extensive time and resources to personally examine
damaged property and appraise its value. The current
statute's language and unspecified timeline are vague and
have led to confusion for taxing units, appraisers, and
property owners.
Under the proposition and its enabling legislation,
property owners would be entitled to a temporary
exemption after a disaster if it occurred before the local
tax rate was set. If the disaster occurred after rates were
set, local governments would have the option to allow the
exemption. The amount of the exemption would be based
on damage assessments provided by the Federal Emergency
Management Agency or another source the chief appraiser
considered appropriate. This method would allow
appraisers and taxing units to save time and money and
avoid duplicative assessments or reappraisals at potentially
hazardous properties. Taxpayers are more familiar with
property tax exemptions than with reappraisals, and
amending the Constitution to allow an exemption would
provide taxpayers with more immediate relief. The
enabling legislation also would provide a clear timeline to
claim exemptions and give taxpayers the opportunity to
protest the results of a damage assessment rate.Background
House Research Organization
Page 9
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Texas. Legislature. House of Representatives. Research Organization. Focus Report, Volume 86, Number 3, August 2019, periodical, August 27, 2019; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth1364417/m1/9/?q=%22~1~1%22~1: accessed July 16, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting UNT Libraries Government Documents Department.