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Signed Into Law
Signed May 27, 2025Effective 2025-09-01
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.

Government Affairs & Regulatory Compliance Analysis

SJR84: Government Affairs Overview

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.

Sen. Paul Bettencourt·Senate Bill·Regular Session

Low
Low Cost
Effective:2025-09-01
Enforcing Agencies

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

Business Impact

Who SJR84 Affects

This legislation has regulatory implications for the following Texas businesses and organizations:

Regulatory Priority: low

Standard regulatory changes (effective 2025-09-01). Review during normal business planning.

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Real Estate

Affected business types:

  • Property developers
  • Commercial landlords
  • Property managers
  • Real estate investors
View all real estate legislation

Key Operational Considerations

  • 1Claims 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.
  • 2Escrow 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.
  • 3Exemption Applications: Tax consultants and agents must track the specific application window defined in the future enabling law.

Estimated Cost Impact

lowMinimal cost impact anticipated.

Enforcing Agencies

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SJR84
Low
Proposing a constitutional amendment to authorize the legislature to provide for a temporary exemption from ad valorem taxation of the appraised value...
Low Compliance Urgency
Requires routine attention
Cost Impact
Low
Effective
2025-09-01
Enforcing Agencies
County Appraisal DistrictsTexas Legislature
Primary Author: Sen. Paul Bettencourt
89th Texas Legislature
jdkey.com
01

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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Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

02

Legislative Timeline

This bill's path through the Texas Legislature

Filed
Passed Senate
May 1, 2025
Passed House
Signed
May 27, 2025
Effective
Sep 1, 2025
TopicsDisaster Preparedness & ReliefProperty InterestsProperty Interests--homesteadResolutionsResolutions--constitutional AmendmentsTaxationTaxation--property-appraisals & Appraisal DistrictsTaxation--property-exemptions
03

Senate Authors

Sen. Paul BettencourtRepublican · Primary Author
Coauthors (1)

House Sponsor

Rep. Cole HefnerRepublican · Primary Sponsor

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

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Quick Reference

Frequently Asked Questions

Common questions about SJR84

Q

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.

Q

Who authored SJR84?

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

Q

When was SJR84 signed into law?

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

Q

Which agencies enforce SJR84?

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

Q

How significant are the changes in SJR84?

The regulatory priority for SJR84 is rated as "low". Businesses and organizations should review the legislation to understand potential impacts.

Q

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.

Q

What topics does SJR84 address?

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

Q

What are the key dates for SJR84?

Key dates for SJR84: Effective date is 2025-09-01. Consult with legal counsel regarding applicability.

Q

Which Texas businesses are affected by SJR84?

SJR84 primarily affects property owners and real estate professionals. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.

Need Strategic Guidance on This Legislation?

JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.

Legislative data provided by LegiScanLast updated: January 11, 2026