Relating to the exclusion from the market value of real property for ad valorem tax purposes of the value of any incomplete structure located on the property.

89(R) HB 3557 - Introduced version - Bill Text

89R9068 CS-D

By: Raymond

H.B. No. 3557

A BILL TO BE ENTITLED

AN ACT

relating to the exclusion from the market value of real property for

ad valorem tax purposes of the value of any incomplete structure

located on the property.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter A, Chapter 23, Tax Code, is amended by

adding Section 23.015 to read as follows:

Sec.

23.015.

EXCLUSION OF VALUE OF INCOMPLETE STRUCTURE

INTENDED FOR HUMAN OCCUPANCY. (a) In determining the market value

of real property, the chief appraiser shall exclude from that value

the value of any structure located on the property if the structure:

(1) is intended for human occupancy;

(2)

is separate from any other structure located on

the property; and

(3)

is incomplete on January 1 of the tax year for

which the chief appraiser determines the market value of the

property.

(b)

For the purpose of this section, a structure is

considered complete:

(1)

on the date a certificate of occupancy or similar

document is issued for the structure, if the structure is located in

a political subdivision that requires a person to obtain a

certificate of occupancy or similar document before the structure

may be occupied; or

(2)

if Subdivision (1) does not apply, on the date the

structure is no longer under active construction or other physical

preparation necessary for occupancy, as determined by the chief

appraiser.

SECTION 2. Section 23.015, Tax Code, as added by this Act,

applies only to the appraisal of real property for ad valorem tax

purposes for an ad valorem tax year that begins on or after the

effective date of this Act.

SECTION 3. This Act takes effect January 1, 2026.