HB 3557

relating to the exclusion from the market value of real property for
ad valorem tax purposes of the value of any incomplete structure
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Subchapter A, Chapter 23, Tax Code, is amended by
adding Section 23.015 to read as follows:
Sec. 23.015.  EXCLUSION OF VALUE OF INCOMPLETE STRUCTURE
INTENDED FOR HUMAN OCCUPANCY.  (a)  In determining the market value
of real property, the chief appraiser shall exclude from that value
the value of any structure located on the property if the structure:
(1)  is intended for human occupancy;
(2)  is separate from any other structure located on
(3)  is incomplete on January 1 of the tax year for
which the chief appraiser determines the market value of the
(b)  For the purpose of this section, a structure is
(1)  on the date a certificate of occupancy or similar
document is issued for the structure, if the structure is located in
a political subdivision that requires a person to obtain a
certificate of occupancy or similar document before the structure
(2)  if Subdivision (1) does not apply, on the date the
structure is no longer under active construction or other physical
preparation necessary for occupancy, as determined by the chief
SECTION 2.  Section 23.015, Tax Code, as added by this Act,
applies only to the appraisal of real property for ad valorem tax
purposes for an ad valorem tax year that begins on or after the
SECTION 3.  This Act takes effect January 1, 2026.