Texas AGs “No” Opinion on Temporary Disaster Exemption for Texas Property Taxes

Foley & Lardner LLP

Foley & Lardner LLPOn April 13, 2020, Texas Attorney General Paxton issued an opinion letter on a request of Sen. Paul Bettencourt, R-Houston, regarding a recently enacted statute providing a temporary tax exemption for qualified property damaged by a disaster. The statutory change was directed at property damaged as a result of Hurricane Harvey in 2017.  

Paxton’s Opinion No. KP-0299 expresses that the Texas Tax Code’s temporary disaster exemption does not extend to property impacted purely by economic losses caused by COVID-19. The Opinion cites a key phrase in the statute — “damaged by the disaster”.  The statute’s damage assessment categories cite levels of physical damage requiring repairs to return the property to its pre-disaster status.

The opinion closes, “Thus, purely economic, non-physical damage to property caused by the COVID-19 disaster is not eligible for the temporary tax exemption provided by Section 11.35 of the Tax Code.” 

A link to Opinion No. KP-0299 can be found here.

Note:  Texas Attorney General Opinion Letters do not have the force or effect of law. However, General Paxton’s opinion will likely guide how appraisal districts will treat an exemption application filed under Tax Code, Section 11.35 as a result of COVID-19. 

[View source.]

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Foley & Lardner LLP | Attorney Advertising

Written by:

Foley & Lardner LLP

Foley & Lardner LLP on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.