Texas SB47 modifies ad valorem tax treatment for replacement structures damaged by casualty, natural disaster, or wind or water damage.

Texas SB47 amends the Tax Code to redefine the treatment of replacement structures damaged by casualty, natural disaster, or wind or water damage for ad valorem tax purposes. A replacement structure is not considered a new improvement if it is of equal or higher quality than the original structure. The bill specifies that if the original structure's materials are no longer available, the replacement structure is not considered an improvement if the new materials are the most comparable in quality. The changes apply to tax years beginning on or after January 1, 2026.

Texas SB47 modifies ad valorem tax treatment for replacement structures damaged by casualty, natural disaster, or wind or water damage.

Texas SB47 amends the Tax Code to redefine the treatment of replacement structures damaged by casualty, natural disaster, or wind or water damage for ad valorem tax purposes. A replacement structure is not considered a new improvement if it is of equal or higher quality than the original structure. The bill specifies that if the original structure's materials are no longer available, the replacement structure is not considered an improvement if the new materials are the most comparable in quality. The changes apply to tax years beginning on or after January 1, 2026.