Relating to the treatment of a replacement structure for a structure that was rendered uninhabitable or unusable by a casualty, a natural disaster, or wind or water damage as a new improvement for ad valorem tax purposes.

SB 58 (Texas) changes how property taxes are calculated for rebuilt structures after disasters. It states that replacing a damaged home or building (due to storms, fires, or natural disasters) does **not** count as a new "improvement" for tax purposes if the replacement matches the original size and exterior materials. However, it would count as a new improvement only if the new structure has more square footage or uses higher-quality exterior materials than the original. The bill also includes an exception if original materials are unavailable, allowing comparable materials without triggering higher taxes. It takes effect for 2026 tax years.