The Comptroller of Public Accounts adopts new §9.416, concerning continuation of residence homestead exemption while a replacement structure is constructed, without changes to the proposed text as published in the January 1, 2010, issue of the Texas Register (35 TexReg 36). Tax Code, §11.135(g) authorizes the comptroller to adopt rules to implement the section. The new rule provides guidance to local chief appraisers on the steps to follow when a taxpayer who was granted a continuance fails to satisfy the statutory conditions for the continuation.

The new rule implements certain provisions of House Bill 770, 81st Legislature, 2009, effective January 1, 2010. Section 2 of the bill describes the conditions under which a residence homestead exemption may be continued for a residence homestead rendered uninhabitable or unusable by a casualty or by wind or water damage. The bill also provides a time limit for completing a replacement structure and for disallowing the exemption if the property is sold before the replacement structure is completed.

No comments were received regarding adoption of the new rule.

The new section is adopted under Tax Code, §11.135(g) which allows the comptroller to adopt rules concerning the continuance of the exemption under Tax Code, §11.135.

The new section implements Tax Code, §11.135.