SB467

Regular Session

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.

ModeratePlan for compliance

Low Cost

Effective:2026-01-01

Enforcing Agencies

County Appraisal Districts (Chief Appraiser) • County Tax Assessor-Collectors

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

Effective Date: January 1, 2026 (Contingent on voter approval of the constitutional amendment in Nov 2025).
Compliance Deadline: Rolling deadline; applications must be filed no later than the 180th day after the date the fire occurs.
Agency Rulemaking: The Comptroller must consult with appraisal districts and distribute guidelines for reappraisals by September 1, 2026.
*Regulatory Gray Zone:* From Jan 1, 2026, to Sept 1, 2026, the law will be in effect without finalized Comptroller guidelines. You must rely on statutory text and local Chief Appraiser discretion during this window.

Immediate Action Plan

Monitor Election (Nov 2025): Confirm passage of the constitutional amendment; if rejected, this compliance preparation is moot.
Update Loss Draft Protocols: Mortgage servicers must flag "Total Fire Loss" accounts for potential tax abatement immediately upon notification.
Revise Intake Forms: Tax agents must add a "Date of Fire" field to intake forms to track the 180-day jurisdictional deadline automatically.
Establish Evidence Packets: Create a standardized document checklist for clients claiming this exemption (Adjuster Report + Utility Cut-off + Fire Report).

Operational Changes Required

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.

Strategic Ambiguities & Considerations

Definition of "Completely Destroyed": The statute does not define the physical threshold for "complete destruction" (e.g., does a remaining foundation or standing brick façade disqualify the exemption?). Until Comptroller guidelines are issued in late 2026, this will be subject to local Chief Appraiser interpretation.
Interaction with Disaster Exemptions: It is currently unclear if this exemption can be stacked with or is mutually exclusive to the existing Disaster Exemption (Sec 11.35).
"Casualty" vs. "Fire": While the bill title specifies fire, the fiscal note references "casualty." Rulemaking will determine if other total losses (e.g., explosion, vehicle impact) qualify under this specific provision.

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Legislative Timeline

This bill's path through the Texas Legislature

TopicsDisaster Preparedness & Relief Property Interests Property Interests--homestead Taxation Taxation--property-appraisals & Appraisal Districts Taxation--property-exemptions Comptroller of Public Accounts

Official Analysis

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BILL ANALYSIS

Senate Research Center	S.B. 467
89R747 RDS-D	By: Paxton; Zaffirini
	Local Government
	4/11/2025
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

An unexpected, tragic loss of a home through a fire or other casualty is devastating to the affected family. Property appraisals are assessed January 1 of each year and without a process for if there is a major change in value; for instance, if a house burns down.

This bill provides some relief by requiring a method to request a reappraisal of the residential property and directing the Comptroller of Public Accounts of the State of Texas to develop guidelines for the tax entity to calculate a prorated rate based on when the casualty occurred.

As proposed, S.B. 467 amends current law relating to the reappraisal for ad valorem taxation purposes of real property on which a building completely destroyed by a casualty is located.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1.� Amends Subchapter A, Chapter 23, Tax Code, by adding Section 23.025, as follows:

Sec. 23.025.� REAPPRAISAL OF PROPERTY DESTROYED BY CASUALTY.� (a)� Authorizes a property owner to request the chief appraiser of an appraisal district in which a residence homestead owned and occupied by the property owner is located to reappraise property that is the property owner's residence homestead if a building located on the property is completely destroyed by a casualty.� Requires the owner to make the request in writing not later than the 180th day after the date the casualty occurs.

(b) Requires the chief appraiser, except as provided by this subsection, to reappraise property described by Subsection (a) if requested to do so by the owner of the property.� Provides that the chief appraiser is not required to reappraise the property if the property qualifies for an exemption under Section 11.35 (Temporary Exemption for Qualified Property Damage by Disaster) as the result of the same casualty.

(c) Requires the Comptroller of Public Accounts of the State of Texas (comptroller), in consultation with appraisal districts, to develop guidelines for determining the process for reappraising property under this section, including for determining whether property is completely destroyed by a casualty and for calculating an appropriate value of any residence homestead exemption and appraisal limitation applied during or after the tax year for which the property is reappraised.

(d) Requires the chief appraiser to complete the reappraisal of property as soon as practicable after a request is made.

(e)� Requires the chief appraiser to include certain information in the appraisal records.

(f)� Provides that the amount of the taxes imposed by a taxing unit on property reappraised under this section for the tax year in which a casualty occurs is calculated by:

(1)� multiplying the amount of the taxes that otherwise would be imposed by the taxing unit on the property for the entire year by a fraction, the denominator of which is 365 and the numerator of which is the number of days that elapsed before the date the casualty occurred;

(2)� multiplying the amount of the taxes that would be imposed by the taxing unit on the property for the entire year based on the reappraised value of the property by a fraction, the denominator of which is 365 and the numerator of which is the number of days, including the date the casualty occurred, remaining in the tax year; and

(3)� adding the amounts calculated under Subdivisions (1) and (2).

(g)� Requires the assessor for each taxing unit, if property is reappraised under this section, to calculate the amount of the tax due on the property as provided by this section.� Requires the assessor, if the property is reappraised after the amount of the tax due on the property is calculated, to recalculate the amount of the tax due on the property and correct the tax roll. Requires the assessor, if the tax bill has been mailed and the tax on the property has not been paid, to mail a corrected tax bill to the person in whose name the property is listed on the tax roll or to the person's authorized agent. Requires the tax collector for the taxing unit, if the tax on the property has been paid, to refund to the person who paid the tax the amount by which the payment exceeded the tax due.

SECTION 2. �Requires the comptroller, not later than September 1, 2026, to develop guidelines required by Section 23.025, Tax Code, as added by this Act, and distribute those guidelines to each appraisal district.

SECTION 3.� Makes application of this Act prospective.

SECTION 4. Effective date: upon passage or September 1, 2025.

Senate Authors

Sen. Angela PaxtonRepublican · Primary Author

Joint Authors

Judith Zaffirini (D)

Coauthors (1)

Cesar Blanco (D)

House Sponsor

Rep. Cole HefnerRepublican · Primary Sponsor

Bill Text(with markup)

S.B. No. 467

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

	AN ACT
	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.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by
	adding Section 11.351 to read as follows:
	Sec. 11.351. TEMPORARY EXEMPTION FOR IMPROVEMENT TO
	RESIDENCE HOMESTEAD DESTROYED BY FIRE. (a) In this section,
	"residence homestead" has the meaning assigned by Section 11.13.
	(b) A person is entitled to an exemption from taxation by a
	taxing unit in an amount determined under Subsection (d) of the
	appraised value of an improvement to the person's residence
	homestead that:
	(1) is completely destroyed by a fire;
	(2) is a habitable dwelling immediately before the
	date the fire occurs; and
	(3) remains uninhabitable for at least 30 days after
	the date the fire occurs.
	(c) A person is entitled to an exemption provided by this
	section only for the tax year in which the fire occurs.
	(d) The amount of the exemption authorized by this section
	is calculated by multiplying the appraised value of the improvement
	for the tax year in which the fire occurs by a fraction, the
	denominator of which is 365 and the numerator of which is the number
	of days remaining in the tax year after the date on which the fire
	occurs.
	(e) A property owner must submit an application for an
	exemption authorized by this section to the chief appraiser of the
	appraisal district in which the improvement that is the subject of
	the application is located not later than the 180th day after the
	date the fire occurs.
	(f) On receipt of an application under Subsection (e), the
	chief appraiser shall determine whether the improvement that is the
	subject of the application qualifies for the exemption authorized
	by this section. In determining whether an improvement qualifies
	for the exemption authorized by this section, the chief appraiser
	may rely on information provided by any other source the chief
	appraiser considers appropriate, including a county fire marshal or
	an insurance adjuster.
	(g) If a person becomes entitled to the exemption authorized
	by this section after the amount of tax due on the property is
	calculated and the effect of the qualification is to reduce the
	amount of the tax due on the property, the assessor for each
	applicable taxing unit shall recalculate the amount of the tax due
	on the property and correct the tax roll. If the tax bill has been
	mailed and the tax on the property has not been paid, the assessor
	shall mail a corrected tax bill to the person in whose name the
	property is listed on the tax roll or to the person's authorized
	agent. If the tax on the property has been paid, the tax collector
	for the taxing unit shall refund to the person who paid the tax the
	amount by which the payment exceeded the tax due.
	SECTION 2. The change in law made by this Act applies only
	to 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, but only
	if the constitutional amendment proposed by the 89th Legislature,
	Regular Session, 2025, to authorize the legislature to provide for
	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 is approved by the voters. If that amendment is
	not approved by the voters, this Act has no effect.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


April 12, 2025

TO:	Honorable Paul Bettencourt, Chair, Senate Committee on Local Government

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	SB467 by Paxton (Relating to the reappraisal for ad valorem taxation purposes of real property on which a building completely destroyed by a casualty is located.), As Introduced

Passage of the bill would allow reappraisals on any residence homestead property that includes a building completely destroyed by a casualty. As a result, taxable property values could be reduced and the related costs to the Foundation School Fund could be increased through the operation of the school finance formulas.

The bill would allow a property owner to request a reappraisal on their residence homestead, in writing and within a certain time period, if a building located on the property has been completely destroyed by a casualty.

The amount of taxes imposed on reappraised property is prorated based on the date on which the property was completely destroyed by the casualty. The bill directs the assessor to recalculate the property tax amount due and provides for tax bill revision or tax refund. The reappraisal provision would not apply to property subject to the governor-declared disaster area exemption.

The bill would require the Comptroller, in consultation with appraisal districts, to develop guidelines for reappraisals under this section by September 1, 2026 and distribute them to each appraisal district.

Passage of the bill would allow reappraisals on any residence homestead property that includes a building completely destroyed by a casualty. The bill does not define the degree of damage termed “completely destroyed” or what type of destroyed buildings on the residence homestead property would be eligible for a reappraisal.

To the extent that this bill would provide reduced property appraisals, it can be assumed that any property that was “completely destroyed” would be appraised at a lower market value. As a result, taxable property values and the related property tax revenue for certain units of local government would be reduced and thus impact the state through the operation of the school funding formulas. However, the frequency, timing, and severity of future damages, and the number of taxing units that would be impacted cannot be predicted. Consequently, the cost of the bill cannot be estimated.

Local Government Impact

Passage of the bill would allow reappraisals on any residence homestead property that includes a building completely destroyed by a casualty. As a result, taxable property values could be reduced. However, the no-new-revenue and voter-approval tax rates as provided by Section 26.04, Tax Code could be higher as a consequence of the reduced appraised value proposed by the bill.

Source Agencies:

304 Comptroller of Public Accounts

LBB Staff:

JMc, SZ, SD, BRI

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Frequently Asked Questions

Common questions about SB467

What does Texas SB467 do?

SB467 establishes a prorated ad valorem tax exemption for residence homestead improvements that are completely destroyed by fire, contingent upon voter approval of a constitutional amendment in November 2025. Mortgage servicers, tax consultants, and insurance carriers must prepare for new "total loss" documentation workflows and a strict 180-day filing window to ensure accurate tax liability adjustments and escrow calculations starting January 1, 2026. Implementation Timeline Effective Date: January 1, 2026 (Contingent on voter approval of the constitutional amendment in Nov 2025).

Who authored SB467?

SB467 was authored by Texas Senator Angela Paxton during the Regular Session.

When was SB467 signed into law?

SB467 was signed into law by Governor Greg Abbott on June 20, 2025.

Which agencies enforce SB467?

SB467 is enforced by County Appraisal Districts (Chief Appraiser) and County Tax Assessor-Collectors.

How urgent is compliance with SB467?

The compliance urgency for SB467 is rated as "moderate". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

What is the cost impact of SB467?

The cost impact of SB467 is estimated as "low". This may vary based on industry and implementation requirements.

What topics does SB467 address?

SB467 addresses topics including disaster preparedness & relief, property interests, property interests--homestead, taxation and taxation--property-appraisals & appraisal districts.

Legislative data provided by LegiScanLast updated: November 25, 2025

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