Tex. Tax Code Section 11.135
Continuation of Residence Homestead Exemption While Replacement Structure Is Constructed; Sale of Property


(a)

If a qualified residential structure for which the owner receives an exemption under Section 11.13 (Residence Homestead) is rendered uninhabitable or unusable by a casualty or by wind or water damage, the owner may continue to receive the exemption for the structure and the land and improvements used in the residential occupancy of the structure while the owner constructs a replacement qualified residential structure on the land if the owner does not establish a different principal residence for which the owner receives an exemption under Section 11.13 (Residence Homestead) during that period and intends to return and occupy the structure as the owner’s principal residence. To continue to receive the exemption, the owner must begin active construction of the replacement qualified residential structure or other physical preparation of the site on which the structure is to be located not later than the first anniversary, or the fifth anniversary for a property described by Subsection (a-1)(1), of the date the owner ceases to occupy the former qualified residential structure as the owner’s principal residence.

(a-1)

An owner may not receive an exemption under Section 11.13 (Residence Homestead) for property under the circumstances described by Subsection (a) for more than:

(1)

five years if:

(A)

the property is located in an area declared to be a disaster area by the governor following a disaster; and

(B)

the residential structure located on the property is rendered uninhabitable or unusable as a result of the disaster; or

(2)

two years if Subdivision (1) does not apply.

(b)

For purposes of Subsection (a), the site of a replacement qualified residential structure is under physical preparation if the owner has engaged in architectural or engineering work, soil testing, land clearing activities, or site improvement work necessary for the construction of the structure or has conducted an environmental or land use study relating to the construction of the structure.

(c)

If an owner receives an exemption for property under Section 11.13 (Residence Homestead) under the circumstances described by Subsection (a) and sells the property before the owner completes construction of a replacement qualified residential structure on the property, an additional tax is imposed on the property equal to the difference between the taxes imposed on the property for each of the years in which the owner received the exemption and the tax that would have been imposed had the owner not received the exemption in each of those years, plus interest at an annual rate of seven percent calculated from the dates on which the differences would have become due.

(d)

A tax lien attaches to property on the date a sale under the circumstances described by Subsection (c) occurs to secure payment of the additional tax and interest imposed by that subsection and any penalties incurred. The lien exists in favor of all taxing units for which the additional tax is imposed.

(e)

A determination that a sale of property under the circumstances described by Subsection (c) has occurred is made by the chief appraiser. The chief appraiser shall deliver a notice of the determination to the owner of the property as soon as possible after making the determination and shall include in the notice an explanation of the owner’s right to protest the determination. If the owner does not file a timely protest or if the final determination of the protest is that the additional taxes are due, the assessor for each taxing unit shall prepare and deliver a bill for the additional taxes plus interest as soon as practicable. The taxes and interest are due and become delinquent and incur penalties and interest as provided by law for ad valorem taxes imposed by the taxing unit if not paid before the next February 1 that is at least 20 days after the date the bill is delivered to the owner of the property.

(f)

The sanctions provided by Subsection (c) do not apply if the sale is:

(1)

for right-of-way; or

(2)

to this state or a political subdivision of this state to be used for a public purpose.

(g)

The comptroller shall adopt rules and forms to implement this section.
Added by Acts 2009, 81st Leg., R.S., Ch. 359 (H.B. 1257), Sec. 1(a), eff. June 19, 2009.
Added by Acts 2009, 81st Leg., R.S., Ch. 1417 (H.B. 770), Sec. 2, eff. January 1, 2010.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 422 (S.B. 443), Sec. 1, eff. June 4, 2019.

Source: Section 11.135 — Continuation of Residence Homestead Exemption While Replacement Structure Is Constructed; Sale of Property, https://statutes.­capitol.­texas.­gov/Docs/TX/htm/TX.­11.­htm#11.­135 (accessed Mar. 16, 2024).

11.01
Real and Tangible Personal Property
11.02
Intangible Personal Property
11.11
Public Property
11.12
Federal Exemptions
11.13
Residence Homestead
11.14
Tangible Personal Property Not Producing Income
11.15
Family Supplies
11.16
Farm Products
11.17
Cemeteries
11.18
Charitable Organizations
11.19
Youth Spiritual, Mental, and Physical Development Associations
11.20
Religious Organizations
11.21
Schools
11.22
Disabled Veterans
11.23
Miscellaneous Exemptions
11.24
Historic Sites
11.25
Marine Cargo Containers Used Exclusively in International Commerce
11.26
Limitation of School Tax on Homesteads of Elderly or Disabled
11.27
Solar and Wind-powered Energy Devices
11.28
Property Exempted from City Taxation by Agreement
11.29
Intracoastal Waterway Dredge Disposal Site
11.30
Nonprofit Water Supply or Wastewater Service Corporation
11.31
Pollution Control Property
11.32
Certain Water Conservation Initiatives
11.33
Raw Cocoa and Green Coffee Held in Harris County
11.34
Limitation of Taxes on Real Property in Designated Areas of Certain Municipalities
11.35
Temporary Exemption for Qualified Property Damaged by Disaster
11.36
Child-care Facilities
11.41
Partial Ownership of Exempt Property
11.42
Exemption Qualification Date
11.43
Application for Exemption
11.44
Notice of Application Requirements
11.45
Action on Exemption Applications
11.46
Compilation of Partial Exemptions
11.47
Mail Survey of Residence Homesteads
11.48
Confidential Information
11.49
Legal Title Not Affected
11.50
Provision of Names of Individuals Receiving Residence Homestead Exemption to Another Chief Appraiser
11.111
Public Property Used to Provide Transitional Housing for Indigent Persons
11.132
Donated Residence Homestead of Partially Disabled Veteran
11.133
Residence Homestead of Surviving Spouse of Member of Armed Services Killed in Line of Duty
11.134
Residence Homestead of Surviving Spouse of First Responder Killed in Line of Duty
11.135
Continuation of Residence Homestead Exemption While Replacement Structure Is Constructed
11.141
Precious Metal Held in Precious Metal Depository
11.161
Implements of Husbandry
11.181
Charitable Organizations Improving Property for Low-income Housing
11.182
Community Housing Development Organizations Improving Property for Low-income and Moderate-income Housing: Property Previously Exempt
11.183
Association Providing Assistance to Ambulatory Health Care Centers
11.184
Organizations Engaged Primarily in Performing Charitable Functions
11.185
Colonia Model Subdivision Program
11.201
Additional Tax on Sale of Certain Religious Organization Property
11.211
Real Property Leased to Certain Schools
11.231
Nonprofit Community Business Organization Providing Economic Development Services to Local Community
11.251
Tangible Personal Property Exempt
11.252
Motor Vehicles Leased for Use Other than Production of Income
11.253
Tangible Personal Property in Transit
11.254
Motor Vehicle Used for Production of Income and for Personal Activities
11.261
Limitation of County, Municipal, or Junior College District Tax on Homesteads of Disabled and Elderly
11.271
Offshore Drilling Equipment Not in Use
11.311
Landfill-generated Gas Conversion Facilities
11.315
Energy Storage System in Nonattainment Area
11.421
Qualification of Religious Organization
11.422
Qualifications of a School
11.423
Qualification of Charitable Organization or Youth Association
11.424
Conflict Between Governing Regulation of Nonprofit Organization, Association, or Entity and Contract with United States
11.431
Late Application for Homestead Exemption
11.432
Homestead Exemption for Manufactured Home
11.433
Late Application for Religious Organization Exemption
11.434
Late Application for a School Exemption
11.435
Late Application for Charitable Organization Exemption
11.436
Application for Exemption of Certain Property Used for Low-income Housing
11.437
Exemption for Cotton Stored in Warehouse
11.438
Late Application for Veteran’s Organization Exemption
11.439
Late Applications for Disabled Veterans Exemptions
11.1801
Charity Care and Community Benefits Requirements for Charitable Hospital
11.1825
Organizations Constructing or Rehabilitating Low-income Housing: Property Not Previously Exempt
11.1826
Monitoring of Compliance with Low-income and Moderate-income Housing Exemptions
11.1827
Community Land Trust
11.4391
Late Application for Freeport Exemption

Accessed:
Mar. 16, 2024

§ 11.135’s source at texas​.gov