SJR84

Regular Session

Proposing a constitutional amendment 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.

LowStandard timeline

Low Cost

Effective:2025-09-01

Enforcing Agencies

Texas Legislature (Authorized to enact enabling statutes) • County Appraisal Districts (Future operational implementation upon enabling legislation)

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

Effective Date: November 4, 2025 (Contingent upon voter approval of the constitutional amendment).
Compliance Deadline: January 1, 2026 (Estimated). Operational changes are contingent upon the passage and effective date of the enabling statute (S.B. 467).
Agency Rulemaking: The Texas Comptroller and County Appraisal Districts (CADs) will develop application forms and verification standards post-ratification. Expect a "regulatory gray zone" in Q1 2026 regarding the specific definition of "completely destroyed" until initial CAD guidance is issued.

Immediate Action Plan

Monitor Election Results: Track the November 4, 2025 ballot to confirm ratification.
Review Enabling Legislation: Immediately upon ratification, analyze the companion bill (S.B. 467) to determine the statutory duration of the exemption.
Audit Escrow Algorithms: Ensure servicing software can isolate improvement value from land value to prevent total tax zeroing.
Prepare Documentation Templates: Insurance legal teams should draft "Certification of Total Loss" templates that align with anticipated CAD requirements.

Operational Changes Required

Contracts

Mortgage Servicing Agreements: Standard Deeds of Trust do not require amendment. However, internal escrow administration protocols must be updated. Servicers must be legally prepared to conduct off-cycle escrow analyses to reduce monthly payments, avoiding RESPA over-collection violations when tax liability drops to near zero on the structure.

Hiring/Training

Claims Adjusters: Train staff to issue "Proof of Loss" documentation that specifically addresses structural integrity, as CADs will require more than a standard payout notice to grant the exemption.
Escrow Officers: Staff must be trained to flag accounts with total fire losses and manually override automated tax estimations that rely on the previous year's assessment.

Reporting & Record-Keeping

Exemption Applications: Tax consultants and agents must track the specific application window defined in the future enabling law.
System Logic: Servicing platforms must be updated to distinguish between "Land" (taxable) and "Improvement" (exempt). Zeroing out the entire tax bill will result in tax default on the land portion.

Fees & Costs

No New Government Fees: There are no filing fees associated with the resolution.
Operational Costs: Minimal budget impact, limited to software updates for tax estimation logic and administrative time for processing off-cycle escrow adjustments.

Strategic Ambiguities & Considerations

Definition of "Completely Destroyed": The resolution does not define the threshold for destruction. Enabling legislation must clarify if a structure that is 90% destroyed and condemned—but has a remaining foundation—qualifies. Ambiguity here will lead to disputes between Appraisal Districts and property owners.
Duration of Exemption: The amendment authorizes the Legislature to prescribe the duration. It is currently unclear if the exemption will be a fixed term (e.g., two years) or conditional based on the timeline of reconstruction.
Scope of "Fire": It is unclear if the enabling legislation will exclude fires resulting from owner negligence or arson, or if it covers smoke damage rendering a home uninhabitable without structural collapse.

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Legislative Timeline

This bill's path through the Texas Legislature

Filed

Passed House

Filed

Passed House

TopicsDisaster Preparedness & Relief Property Interests Property Interests--homestead Resolutions Resolutions--constitutional Amendments Taxation Taxation--property-appraisals & Appraisal Districts Taxation--property-exemptions

Official Analysis

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BILL ANALYSIS

Senate Research Center	S.J.R. 84
89R23082 RDS-D	By: Bettencourt
	Local Government
	4/14/2025
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

S.J.R. 84 proposes a constitutional amendment to authorize the legislature to provide a temporary property tax exemption for a homestead property damaged by fire.

S.J.R. 84 is the constitutional amendment for S.B. 467.

S.J.R. 84 proposes a constitutional amendment 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.

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 Section 1-b, Article VIII, Texas Constitution, by adding Subsection (z), as follows:

(z) Authorizes the legislature by general law to provide for a temporary exemption from ad valorem taxation of the appraised value of an improvement to a person's residence homestead that is completely destroyed by a fire. Authorizes the legislature by general law to prescribe the duration of the exemption and provide additional eligibility requirements for the exemption.

SECTION 2. Requires that the proposed constitutional amendment be submitted to the voters at an election to be held November 4, 2025. Sets forth the required language of the ballot.

Senate Authors

Sen. Paul BettencourtRepublican · Primary Author

Coauthors (1)

Adam Hinojosa (R)

House Sponsor

Rep. Cole HefnerRepublican · Primary Sponsor

Bill Text(with markup)

S.J.R. No. 84

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original


	proposing a constitutional amendment 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.
	BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Section 1-b, Article VIII, Texas Constitution,
	is amended by adding Subsection (z) to read as follows:
	(z) The legislature by general law may provide for a
	temporary exemption from ad valorem taxation of the appraised value
	of an improvement to a person's residence homestead that is
	completely destroyed by a fire. The legislature by general law may
	prescribe the duration of the exemption and may provide additional
	eligibility requirements for the exemption.
	SECTION 2. This proposed constitutional amendment shall be
	submitted to the voters at an election to be held November 4, 2025.
	The ballot shall be printed to permit voting for or against the
	proposition: "The constitutional amendment 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."

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


April 14, 2025

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

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	SJR84 by Bettencourt (Proposing a constitutional amendment 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.), As Introduced

No fiscal implication to the State is anticipated, other than the cost of publication.

The cost to the state for publication of the resolution is $191,689.

Local Government Impact

No fiscal implication to units of local government is anticipated.

Source Agencies:

LBB Staff:

JMc, SZ, CMA

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Frequently Asked Questions

Common questions about SJR84

What does Texas SJR84 do?

SJR84 places a constitutional amendment on the November 4, 2025, ballot authorizing the Legislature to create a temporary property tax exemption for homestead improvements completely destroyed by fire. While this is a procedural step requiring voter approval, mortgage servicers and insurance carriers must prepare for the subsequent enabling legislation (S. B.

Who authored SJR84?

SJR84 was authored by Texas Senator Paul Bettencourt during the Regular Session.

When was SJR84 signed into law?

SJR84 was signed into law by Governor Greg Abbott on May 27, 2025.

Which agencies enforce SJR84?

SJR84 is enforced by Texas Legislature (Authorized to enact enabling statutes) and County Appraisal Districts (Future operational implementation upon enabling legislation).

How urgent is compliance with SJR84?

The compliance urgency for SJR84 is rated as "low". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

What is the cost impact of SJR84?

The cost impact of SJR84 is estimated as "low". This may vary based on industry and implementation requirements.

What topics does SJR84 address?

SJR84 addresses topics including disaster preparedness & relief, property interests, property interests--homestead, resolutions and resolutions--constitutional amendments.

Legislative data provided by LegiScanLast updated: November 25, 2025

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