Texas Senate Bill SB 467

Texas 2025 - 89th Regular

• Filed: 11/22/24
• Out of Senate Committee: 4/22/25
• Voted on by Senate: 4/29/25
• Out of House Committee: 5/19/25
• Voted on by House: 5/27/25
• Governor Action: 6/20/25

Caption

Relating to a temporary exemption from ad valorem taxation of the appraised value of an improvement to a residence homestead that is completely destroyed by a fire.

Summary

SB 467 creates a temporary property tax exemption for part of the appraised value of a residence homestead improvement that is completely destroyed by fire. The exemption applies only if the structure was a habitable dwelling immediately before the fire and remains uninhabitable for at least 30 days afterward. It is limited to the tax year in which the fire occurs and is calculated on a prorated basis using the number of days remaining in that tax year after the fire. To receive the exemption, the property owner must apply to the chief appraiser of the appraisal district within 180 days after the fire. The chief appraiser may use information from other sources, such as a county fire marshal or insurance adjuster, to determine eligibility. If the exemption is granted after taxes have already been calculated, local tax officials must correct the tax roll, issue a corrected bill if necessary, or refund any overpayment.

Impact

The bill amends Chapter 11 of the Texas Tax Code by adding a new Section 11.351, creating a narrowly tailored temporary ad valorem tax exemption for fire-destroyed residence homestead improvements. It affects local taxing units, appraisal districts, assessors, and tax collectors by requiring them to adjust tax rolls, bills, and refunds when a qualifying fire loss is recognized. The law applies only to tax years beginning on or after the bill’s effective date and only if the related constitutional amendment authorizing this exemption is approved by voters; otherwise, the bill has no effect.

Sentiment

The bill appears to have been broadly supported and noncontroversial. It passed the Senate and House overwhelmingly, with unanimous recorded votes in the available history and no committee transcript indicating opposition. The legislative record suggests general agreement that homeowners who lose a habitable residence to fire should receive temporary tax relief for the destroyed improvement.

Contention

There is little evidence of substantive contention in the available record. The main policy issue is the scope and timing of the exemption: it is limited to a residence homestead improvement completely destroyed by fire, only for the year of the fire, and only after a 30-day period of continued uninhabitability. Any practical concerns would likely center on verification of fire damage, the 180-day filing deadline, and coordination among appraisal districts, fire marshals, and insurance adjusters, but no specific objections are reflected in the provided materials.