The bill, H.B. No. 3557, proposes an amendment to the Texas Tax Code that allows for the exclusion of the value of incomplete structures from the market value of real property for ad valorem tax purposes. Specifically, it introduces a new section, 23.015, which stipulates that the chief appraiser must exclude the value of any structure intended for human occupancy if it is incomplete as of January 1 of the tax year. The bill outlines criteria for determining whether a structure is considered complete, including the issuance of a certificate of occupancy or the cessation of active construction.

This amendment is set to take effect on January 1, 2026, and will apply to the appraisal of real property for ad valorem tax purposes for tax years beginning on or after that date. The intent of the bill is to provide tax relief for property owners with incomplete structures, thereby potentially reducing their tax burden during the construction phase.

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