DAMAGE TO BUSINESS OR
RESIDENCE FROM WINTER STORM URI?
On
February 12, 2021, Governor Abbott issued a disaster declaration in response to
an imminent threat of severe winter weather.
The prolonged freezing temperatures that followed, combined with lack of
electrical power, resulted in an estimated 50 deaths and $125B in property
damage across the State.
Texas
appraisal districts determine the market value of property as of the January 1st condition. Therefore, for those suffering damage, a
temporary disaster exemption must be
applied for no later than 105 days from the date of the declaration or, in
the case of the recent winter storm, no
later than May 28th. The
exemption applies to all real property types and business personal property
(rendition must be filed in 2021).
Damage must be at least 15% of the market value of the improvement value
and may be as high as 100% if the damage caused a total loss meaning repair is
not feasible (see levels below).
The chief
appraiser will determine whether the property qualifies for the exemption and
will assign a damage assessment rating based on the information provided by the
owner. Supporting information includes
any documentation provided by a county emergency management authority, FEMA or
any other source considered appropriate such as an insurance adjuster or other
written repair estimate.
Level Exemption % Damage Assessment Damage Description
I 15% 15%
but < 30% Minimal; may
be used as intended
II
30% 30% but < 60% Nonstructural; water <18”
above floor if
flooded
III 60% 60%
but < 100% Significant structural damage; water
18”above floor
IV 100% 100% Total
loss; repair is not feasible
The
dollar amount of the exemption is determined by multiplying the building (or
business personal property) value by the exemption percentage as shown above
then prorating for the number of days remaining in the tax year after the date
the Governor declares the disaster. The
proration factor for Uri is 0.88 (322 days ÷ 365 days). A $100,000 improvement with $20,000 in damage would receive a $13,200 exemption ($20,000
÷ $100,000 = 20% (Damage Assessment Level I) thus $100,000
x 15% = $15,000 x 0.88 = $13,200 (reducing the 2021 taxable
value).
This
exemption would be in addition to any other exemptions existing on the property
and would expire January 1, 2022 (or the first year in which the property is
reappraised). After application is
received and reviewed, the appraisal district must send written notice of the
approval, modification, or denial to the property owner. An application is posted above.
This
exemption is the result of House Bill 492 (86th Legislative Session)
and Texas Constitutional Amendment Proposition Three that was overwhelmingly
approved by voters November 5, 2019.
Thank your State Representative and Senator. Efforts to pass disaster legislation began
right after Hurricane Ike in 2009.