Texas SB58 modifies tax treatment for replacement structures damaged by casualty, natural disaster, or wind/water damage.

Texas SB58 amends the Tax Code to change how replacement structures are treated for ad valorem tax purposes. If a structure is replaced after being rendered uninhabitable or unusable by a casualty, natural disaster, or wind or water damage, it is not considered a new improvement if the replacement's square footage does not exceed the original or if the exterior materials are of comparable quality. This Act takes effect January 1, 2026.

Texas SB58 modifies tax treatment for replacement structures damaged by casualty, natural disaster, or wind/water damage.

Texas SB58 amends the Tax Code to change how replacement structures are treated for ad valorem tax purposes. If a structure is replaced after being rendered uninhabitable or unusable by a casualty, natural disaster, or wind or water damage, it is not considered a new improvement if the replacement's square footage does not exceed the original or if the exterior materials are of comparable quality. This Act takes effect January 1, 2026.