� |
� |
� |
�
|
AN ACT
|
�
|
relating to ad valorem tax relief for an owner of certain property, |
�
|
including a residence homestead that is rendered uninhabitable or |
�
|
unusable by a casualty or by wind or water damage, and to a |
�
|
restriction on the authority to bring an action to remove a house |
�
|
that is partially located on a public beach as a result of a |
�
|
meteorological event. |
�
|
�������BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
�
|
�������SECTION�1.��Section 61.018, Natural Resources Code, is |
�
|
amended by amending Subsection (a) and adding Subsections (a-1), |
�
|
(a-2), and (a-3) to read as follows: |
�
|
�������(a)��Except as provided by Subsection (a-1), any [Any] county |
�
|
attorney, district attorney, or criminal district attorney, or the |
�
|
attorney general at the request of the commissioner, shall file in a |
�
|
district court of Travis County, or in the county in which the |
�
|
property is located, a suit to obtain either a temporary or |
�
|
permanent court order or injunction, either prohibitory or |
�
|
mandatory, to remove or prevent any improvement, maintenance, |
�
|
obstruction, barrier, or other encroachment on a public beach, or |
�
|
to prohibit any unlawful restraint on the public's right of access |
�
|
to and use of a public beach or other activity that violates this |
�
|
chapter. |
�
|
�������(a-1)��A county attorney, district attorney, or criminal |
�
|
district attorney or the attorney general may not file a suit under |
�
|
Subsection (a) to obtain a temporary or permanent court order or |
�
|
injunction, either prohibitory or mandatory, to remove a house from |
�
|
a public beach if: |
�
|
�������������(1)��the line of vegetation establishing the boundary |
�
|
of the public beach moved as a result of a meteorological event that |
�
|
occurred before January 1, 2009; |
�
|
�������������(2)��the house was located landward of the natural line |
�
|
of vegetation before the meteorological event; |
�
|
�������������(3)��a portion of the house continues to be located |
�
|
landward of the line of vegetation; and |
�
|
�������������(4)��the house is located on a peninsula in a county |
�
|
with a population of more than 250,000 and less than 251,000 that |
�
|
borders the Gulf of Mexico. |
�
|
�������(a-2)��The owner of a house described by Subsection (a-1) may |
�
|
repair or rebuild the house if the house was damaged or destroyed by |
�
|
the meteorological event. |
�
|
�������(a-3)��Notwithstanding Subsection (a-1), a county attorney, |
�
|
district attorney, or criminal district attorney or the attorney |
�
|
general may file a suit under Subsection (a) to obtain a temporary |
�
|
or permanent court order or injunction, either prohibitory or |
�
|
mandatory, to remove a house described by Subsection (a-1) from a |
�
|
public beach if the house was damaged or destroyed by the |
�
|
meteorological event and the owner of the house fails to repair or |
�
|
rebuild the house before September 1, 2013. |
�
|
�������SECTION�2.��Subchapter B, Chapter 11, Tax Code, is amended by |
�
|
adding Section 11.135 to read as follows: |
�
|
�������Sec.�11.135.��CONTINUATION OF RESIDENCE HOMESTEAD EXEMPTION |
�
|
WHILE REPLACEMENT STRUCTURE IS CONSTRUCTED; SALE OF PROPERTY. (a) |
�
|
If a qualified residential structure for which the owner receives |
�
|
an exemption under Section 11.13 is rendered uninhabitable or |
�
|
unusable by a casualty or by wind or water damage, the owner may |
�
|
continue to receive the exemption for the structure and the land and |
�
|
improvements used in the residential occupancy of the structure |
�
|
while the owner constructs a replacement qualified residential |
�
|
structure on the land if the owner does not establish a different |
�
|
principal residence for which the owner receives an exemption under |
�
|
Section 11.13 during that period and intends to return and occupy |
�
|
the structure as the owner's principal residence. To continue to |
�
|
receive the exemption, the owner must begin active construction of |
�
|
the replacement qualified residential structure or other physical |
�
|
preparation of the site on which the structure is to be located not |
�
|
later than the first anniversary of the date the owner ceases to |
�
|
occupy the former qualified residential structure as the owner's |
�
|
principal residence. The owner may not receive the exemption for |
�
|
that property under the circumstances described by this subsection |
�
|
for more than two years. |
�
|
�������(b)��For purposes of Subsection (a), the site of a |
�
|
replacement qualified residential structure is under physical |
�
|
preparation if the owner has engaged in architectural or |
�
|
engineering work, soil testing, land clearing activities, or site |
�
|
improvement work necessary for the construction of the structure or |
�
|
has conducted an environmental or land use study relating to the |
�
|
construction of the structure. |
�
|
�������(c)��If an owner receives an exemption for property under |
�
|
Section 11.13 under the circumstances described by Subsection (a) |
�
|
and sells the property before the owner completes construction of a |
�
|
replacement qualified residential structure on the property, an |
�
|
additional tax is imposed on the property equal to the difference |
�
|
between the taxes imposed on the property for each of the years in |
�
|
which the owner received the exemption and the tax that would have |
�
|
been imposed had the owner not received the exemption in each of |
�
|
those years, plus interest at an annual rate of seven percent |
�
|
calculated from the dates on which the differences would have |
�
|
become due. |
�
|
�������(d)��A tax lien attaches to property on the date a sale under |
�
|
the circumstances described by Subsection (c) occurs to secure |
�
|
payment of the additional tax and interest imposed by that |
�
|
subsection and any penalties incurred. The lien exists in favor of |
�
|
all taxing units for which the additional tax is imposed. |
�
|
�������(e)��A determination that a sale of property under the |
�
|
circumstances described by Subsection (c) has occurred is made by |
�
|
the chief appraiser. The chief appraiser shall deliver a notice of |
�
|
the determination to the owner of the property as soon as possible |
�
|
after making the determination and shall include in the notice an |
�
|
explanation of the owner's right to protest the determination. If |
�
|
the owner does not file a timely protest or if the final |
�
|
determination of the protest is that the additional taxes are due, |
�
|
the assessor for each taxing unit shall prepare and deliver a bill |
�
|
for the additional taxes plus interest as soon as practicable. The |
�
|
taxes and interest are due and become delinquent and incur |
�
|
penalties and interest as provided by law for ad valorem taxes |
�
|
imposed by the taxing unit if not paid before the next February 1 |
�
|
that is at least 20 days after the date the bill is delivered to the |
�
|
owner of the property. |
�
|
�������(f)��The sanctions provided by Subsection (c) do not apply if |
�
|
the sale is: |
�
|
�������������(1)��for right-of-way; or |
�
|
�������������(2)��to this state or a political subdivision of this |
�
|
state to be used for a public purpose. |
�
|
�������(g)��The comptroller shall adopt rules and forms to implement |
�
|
this section. |
�
|
�������SECTION�3.��Subchapter B, Chapter 11, Tax Code, is amended by |
�
|
adding Section 11.231 to read as follows: |
�
|
�������Sec.�11.231.��NONPROFIT COMMUNITY BUSINESS ORGANIZATION |
�
|
PROVIDING ECONOMIC DEVELOPMENT SERVICES TO LOCAL COMMUNITY. (a) |
�
|
In this section, "nonprofit community business organization" means |
�
|
an organization that meets the following requirements: |
�
|
�������������(1)��the organization has been in existence for at |
�
|
least the preceding five years; |
�
|
�������������(2)��the organization: |
�
|
�������������������(A)��is a nonprofit corporation organized under |
�
|
the Texas Non-Profit Corporation Act (Article 1396-1.01 et seq., |
�
|
Vernon's Texas Civil Statutes) or a nonprofit corporation formed |
�
|
under the Texas Nonprofit Corporation Law, as described by Section |
�
|
1.008, Business Organizations Code; |
�
|
�������������������(B)��is a nonprofit organization described by |
�
|
Section 501(c)(6), Internal Revenue Code of 1986; and |
�
|
�������������������(C)��is not a statewide organization; |
�
|
�������������(3)��for at least the preceding three years, the |
�
|
organization has maintained a dues-paying membership of at least 50 |
�
|
members; and |
�
|
�������������(4)��the organization: |
�
|
�������������������(A)��has a board of directors elected by the |
�
|
members; |
�
|
�������������������(B)��does not compensate members of the board of |
�
|
directors for service on the board; |
�
|
�������������������(C)��with respect to its activities in this state, |
�
|
is engaged primarily in performing functions listed in Subsection |
�
|
(d); |
�
|
�������������������(D)��is primarily supported by membership dues and |
�
|
other income from activities substantially related to its primary |
�
|
functions; and |
�
|
�������������������(E)��is not, has not formed, and does not |
�
|
financially support a political committee as defined by Section |
�
|
251.001, Election Code. |
�
|
�������(b)��An association that qualifies as a nonprofit community |
�
|
business organization as provided by this section is entitled to an |
�
|
exemption from taxation of: |
�
|
�������������(1)��the buildings and tangible personal property that: |
�
|
�������������������(A)��are owned by the nonprofit community business |
�
|
organization; and |
�
|
�������������������(B)��except as permitted by Subsection (c), are |
�
|
used exclusively by qualified nonprofit community business |
�
|
organizations to perform their primary functions; and |
�
|
�������������(2)��the real property owned by the nonprofit community |
�
|
business organization consisting of: |
�
|
�������������������(A)��an incomplete improvement that: |
�
|
�������������������������(i)��is under active construction or other |
�
|
physical preparation; and |
�
|
�������������������������(ii)��is designed and intended to be used |
�
|
exclusively by qualified nonprofit community business |
�
|
organizations; and |
�
|
�������������������(B)��the land on which the incomplete improvement |
�
|
is located that will be reasonably necessary for the use of the |
�
|
improvement by qualified nonprofit community business |
�
|
organizations. |
�
|
�������(c)��Use of exempt property by persons who are not nonprofit |
�
|
community business organizations qualified as provided by this |
�
|
section does not result in the loss of an exemption authorized by |
�
|
this section if the use is incidental to use by qualified nonprofit |
�
|
community business organizations and limited to activities that |
�
|
benefit the beneficiaries of the nonprofit community business |
�
|
organizations that own or use the property. |
�
|
�������(d)��To qualify for an exemption under this section, a |
�
|
nonprofit community business organization must be engaged |
�
|
primarily in performing one or more of the following functions in |
�
|
the local community: |
�
|
�������������(1)��promoting the common economic interests of |
�
|
commercial enterprises; |
�
|
�������������(2)��improving the business conditions of one or more |
�
|
types of business; or |
�
|
�������������(3)��otherwise providing services to aid in economic |
�
|
development. |
�
|
�������(e)��In this section, "building" includes the land that is |
�
|
reasonably necessary for use of, access to, and ornamentation of |
�
|
the building. |
�
|
�������(f)��A property may not be exempted under Subsection (b)(2) |
�
|
for more than three years. |
�
|
�������(g)��For purposes of Subsection (b)(2), an incomplete |
�
|
improvement is under physical preparation if the nonprofit |
�
|
community business organization has: |
�
|
�������������(1)��engaged in architectural or engineering work, soil |
�
|
testing, land clearing activities, or site improvement work |
�
|
necessary for the construction of the improvement; or |
�
|
�������������(2)��conducted an environmental or land use study |
�
|
relating to the construction of the improvement. |
�
|
�������SECTION�4.��Section 11.26, Tax Code, is amended by adding |
�
|
Subsections (n) and (o) to read as follows: |
�
|
�������(n)��Notwithstanding Subsection (c), the limitation on tax |
�
|
increases required by this section does not expire if the owner of |
�
|
the structure qualifies for an exemption under Section 11.13 under |
�
|
the circumstances described by Section 11.135(a). |
�
|
�������(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�5.��Section 11.261, Tax Code, is amended by adding |
�
|
Subsections (l) and (m) to read as follows: |
�
|
�������(l)��Notwithstanding Subsection (d), a limitation on county, |
�
|
municipal, or junior college district tax increases provided by |
�
|
this section does not expire if the owner of the structure qualifies |
�
|
for an exemption under Section 11.13 under the circumstances |
�
|
described by Section 11.135(a). |
�
|
�������(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�6.��Section 11.42(d), Tax Code, is amended to read as |
�
|
follows: |
�
|
�������(d)��A person who acquires property after January 1 of a tax |
�
|
year may receive an exemption authorized by Section 11.17, 11.18, |
�
|
11.19, 11.20, 11.21, 11.23, 11.231, or 11.30 for the applicable |
�
|
portion of that tax year immediately on qualification for the |
�
|
exemption. |
�
|
�������SECTION�7.��Section 11.43(c), Tax Code, is amended to read as |
�
|
follows: |
�
|
�������(c)��An exemption provided by Section 11.13, 11.17, 11.18, |
�
|
11.182, 11.183, 11.19, 11.20, 11.21, 11.22, 11.23(h), (j), or |
�
|
(j-1), 11.231, 11.29, 11.30, or 11.31, once allowed, need not be |
�
|
claimed in subsequent years, and except as otherwise provided by |
�
|
Subsection (e), the exemption applies to the property until it |
�
|
changes ownership or the person's qualification for the exemption |
�
|
changes. However, the chief appraiser may require a person allowed |
�
|
one of the exemptions in a prior year to file a new application to |
�
|
confirm the person's current qualification for the exemption by |
�
|
delivering a written notice that a new application is required, |
�
|
accompanied by an appropriate application form, to the person |
�
|
previously allowed the exemption. |
�
|
�������SECTION�8.��Section 23.23(f), Tax Code, is 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 [mold] 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 [last] year if the casualty or damage had not |
�
|
occurred [in which the property was appraised for taxation before
|
�
|
the casualty or damage 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) [last year in which the
|
�
|
property was appraised for taxation for purposes of Subsection
|
�
|
(a)(2)(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 [to the extent it is a significant
|
�
|
improvement over] 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. |
�
|
�������SECTION�9.��This Act applies only to ad valorem taxes imposed |
�
|
for a tax year beginning on or after the effective date of this Act. |
�
|
�������SECTION�10.��This Act takes effect January 1, 2010. |
� |
� |
� |
______________________________ |
______________________________ |
� |
���President of the Senate |
Speaker of the House����� |
� |
� |
�
|
�������I certify that H.B. No. 770 was passed by the House on May 7, |
�
|
2009, by the following vote:��Yeas 141, Nays 1, 1 present, not |
�
|
voting; that the House refused to concur in Senate amendments to |
�
|
H.B. No. 770 on May 29, 2009, and requested the appointment of a |
�
|
conference committee to consider the differences between the two |
�
|
houses; and that the House adopted the conference committee report |
�
|
on H.B. No. 770 on May 31, 2009, by the following vote:��Yeas 144, |
�
|
Nays 0, 1 present, not voting. |
�
|
|
�
|
______________________________ |
�
|
Chief Clerk of the House��� |
� |
�
|
�������I certify that H.B. No. 770 was passed by the Senate, with |
�
|
amendments, on May 27, 2009, by the following vote:��Yeas 31, Nays |
�
|
0; at the request of the House, the Senate appointed a conference |
�
|
committee to consider the differences between the two houses; and |
�
|
that the Senate adopted the conference committee report on H.B. No. |
�
|
770 on May 31, 2009, by the following vote:��Yeas 30, Nays 1. |
�
|
|
�
|
______________________________ |
�
|
Secretary of the Senate��� |
�
|
APPROVED: __________________ |
�
|
����������������Date������� |
�
|
� |
�
|
�������� __________________ |
�
|
��������������Governor������� |