Texas Law Protects Property Taxes on Rebuilt Homes After Disasters

SB 58 is a Texas law that protects homeowners from rising property taxes when they rebuild after disasters. When a structure is damaged or destroyed by a casualty, natural disaster declared by the president or governor, or severe wind or water damage, homeowners often need to rebuild. This bill ensures that replacing a structure to match what was there before does not trigger higher property tax assessments. The law applies to property tax assessments in three key areas of Texas tax code. Homeowners who rebuild with the same size and materials as the original structure will not see property value increases for tax purposes. This is important because property tax assessments are often based on improvements to a property. There are exceptions to this protection. If the replacement structure is larger than the original, or if it uses better quality materials on the outside, it may be considered a new improvement. In those cases, property taxes could increase. However, if the original building materials are no longer available and the new materials are as close in quality as possible, the replacement is not treated as an improvement even if quality is higher. SB 58 was introduced by State Representative Borris Miles. The law helps our community recover from disasters without facing unexpected tax increases. Homeowners should check with their local appraisal district if they are rebuilding after damage to understand how this law applies to their situation.