Proposing a constitutional amendment to authorize the legislature to provide for a temporary exemption from ad valorem taxation of the appraised value of an improvement to a residence homestead that is completely destroyed by a fire.

Contracts

• Mortgage Servicing Agreements: Standard Deeds of Trust do not require amendment. However, internal escrow administration protocols must be updated. Servicers must be legally prepared to conduct off-cycle escrow analyses to reduce monthly payments, avoiding RESPA over-collection violations when tax liability drops to near zero on the structure.

Hiring/Training

• Claims Adjusters: Train staff to issue "Proof of Loss" documentation that specifically addresses structural integrity, as CADs will require more than a standard payout notice to grant the exemption.
• Escrow Officers: Staff must be trained to flag accounts with total fire losses and manually override automated tax estimations that rely on the previous year's assessment.

Reporting & Record-Keeping

• Exemption Applications: Tax consultants and agents must track the specific application window defined in the future enabling law.
• System Logic: Servicing platforms must be updated to distinguish between "Land" (taxable) and "Improvement" (exempt). Zeroing out the entire tax bill will result in tax default on the land portion.

Fees & Costs

• No New Government Fees: There are no filing fees associated with the resolution.
• Operational Costs: Minimal budget impact, limited to software updates for tax estimation logic and administrative time for processing off-cycle escrow adjustments.