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.

Contracts

• Tax Representation Agreements: Update engagement letters to explicitly include or exclude "Section 11.351 Fire Destruction Exemption" filings. Define whether this service incurs an additional fee or is part of the standard protest package.
• Mortgage Servicing Covenants: Review internal escrow policy documents. Ensure that a grant of this exemption triggers an immediate escrow analysis to prevent over-collection of tax payments.

Hiring/Training

• Insurance Adjusters: Train field staff to use precise language in reports. The statute explicitly validates adjuster reports as evidence; vague terms like "severe damage" may cause rejection, whereas "complete destruction" or "total loss" aligns with statutory requirements.
• Tax Consultants: Staff must be trained to screen for the "30-day uninhabitability" requirement during client intake to prevent filing ineligible applications.

Reporting & Record-Keeping

• New Filing: A specific application for the temporary exemption must be filed with the Chief Appraiser.
• Evidentiary Standard: You must compile and retain:
• 1. Fire Marshal or Insurance Adjuster reports confirming "complete destruction."
• 2. Proof the property was habitable *immediately prior* to the fire.
• 3. Proof the property remained uninhabitable for at least 30 days post-fire (e.g., utility disconnect notices).

Fees & Costs

• Operational Costs: Administrative costs to prepare and file the 180-day application.
• Tax Liability: Successful filing results in a prorated reduction of tax liability for the tax year in which the fire occurred.