House Bill No. 3557 proposes an amendment to the Texas Tax Code that introduces a new section, 23.015, which allows for the exclusion of the value of incomplete structures intended for human occupancy from the market value of real property for ad valorem tax purposes. Under this new provision, the chief appraiser is required to exclude the value of any structure that is separate from other structures on the property and is incomplete as of January 1 of the tax year in question. The bill specifies that a structure is considered complete either when a certificate of occupancy is issued or when it is no longer under active construction.

The bill is set to take effect on January 1, 2026, and applies only to the appraisal of real property for ad valorem tax purposes for tax years beginning on or after this effective date. This legislative change aims to provide tax relief for property owners with incomplete structures, thereby potentially reducing their tax burden during the construction phase.

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