MAKING SURE YOUR HOME IS TAXED FAIRLY

Step One: Claim Your Exemptions

Virtually all Texas homeowners qualify for at least one property tax exemption and many will qualify for multiple exemptions. Make sure you are claiming all exemptions available to you. A property tax exemption removes part of the value of your property from taxation and lowers your taxes. For instance, if your home is valued at $100,000 and you qualify for a $5,000 exemption, you pay taxes on $95,000 rather than $100,000. Other than exemptions for disabled veterans or their survivors, all of the exemptions reviewed below apply only to your homestead

Requirements To Qualify For Homestead Exemptions

(1) You must own your home on January 1.
(2) You must use the home as your principal residence on January 1.

Your home can be a single family residence, condominium, or a mobile home located on leased land, as long as you own it. A residence owned by a revocable living trust qualifies, if it is occupied as a primary residence by the party or parties making the trust and serving as trustees.

If you have more than one residence, you may claim exemptions for your primary residence only.

If you temporarily move out of your home, you may continue to qualify for exemptions, as long as you do not establish another primary residence and you intend to return to the home for which you claim the exemptions. For instance, if you move to a nursing home, your home continues to qualify for exemptions, as long as you intend to return to it when your health permits.

Renting a portion of your home does not disqualify the remainder of the home.

Available Exemptions

School Taxes
All homeowners qualify for a $5,000 homestead exemption on the home's value for school taxes. Homeowners 65 or older on January 1 qualify for an additional $10,000 exemption on school taxes, in addition to the $5,000 exemption. Once you receive an over-65 exemption for school taxes on a home, the school taxes on that home may not be increased as long as you own and live in that home. However, the tax ceiling may go up if you make improvements to the home which increases its value. When a homeowner who has been receiving the tax ceiling on a home dies, the ceiling transfers to the surviving spouse if the surviving spouse is age 55 or older and owns the home. The tax ceiling also remains if the homeowner transfers the home to a revocable living trust, as long as the homeowner lives in the home.

County Taxes

If your county collects a special tax for farm-to-market roads or flood control, you will receive a $3,000 exemption for this tax.

Optional Exemptions

Any taxing unit, including a school district, city, county or special district, may offer an exemption for up to 20% of your home's value. The amount of an exemption cannot be less than $5,000. Each taxing unit decides whether it will offer the exemption and at what percentage.

Homeowners With Disabilities

A person with a disability may qualify for additional exemptions. Contact you local appraisal district office to determine if you meet the qualifications.

Disabled Veterans or Their Survivors.

If you are a Texas resident, you may qualify for a property tax exemption if you are either (1) a veteran who was disabled while serving with the U. S. armed forces or (2) the surviving spouse or unmarried minor child of a disabled veteran or a member of the armed forces killed on active duty.

This exemption ranges from $1,500 to $3,000 depending upon the extent of the disability. This exemption is not only for homes. It may be applied to any property owned on January 1.

How To File For An Exemption

(1) Get an application form from your local appraisal district office.
(2) Return the form to your local appraisal district office after January 1 but no later than April 30.
(3) Provide all necessary information.
(4) If your property is valued by more than one appraisal district, file an application in each appraisal office. Contact the appraisal district if you are not sure whether your property is in more than one district.

Once you receive a homestead exemption or disabled veteran's exemption, you do not have to re-apply each year unless the chief appraiser asks you to re-apply or your qualifications change. If you move to a new home, you will have to re-apply.

Step Two: Make Certain Your Property Is Valued Correctly.

You will receive notification from your appraisal district of the value they have placed on your property for the current tax year. It is your responsibility to determine if the assessed value is a fair value.

Log on to the website off your appraisal district. Search the tax base for other comparable homes in your neighborhood. Select three or four comparable properties and develop an average value per square foot for these properties. Multiply that number by the number of square feet in your home to get an approximate value for your home. If this number is lower than the proposed value established by the appraisal district, you should investigate further to determine if there is any reason your property might have a higher value placed on it. Do you have extra amenities which surrounding properties do not have? Do you have a three car garage while the other properties have only a double garage?

If you cannot determine any reason for your property to have a higher proposed value, you might want to proceed to Step Three.

Step Three: Protest the Proposed Valuation Of Your Property.

Protesting is easy and it is not intimidating. Your rendition form has a place on the reverse side for you to contest the valuation. Just complete the form and return it to the appraisal district. Within a few weeks, you will be notified of a hearing date. This hearing is informal. You meet with a representative of the appraisal district and present your evidence of over valuation. This can consist of print outs of the valuation of several comparable properties in your neighborhood. If you just purchased your property, and the valuation is higher than the purchase price, just bring a copy of your closing statement.

In rare instances, where substantial sums are involved, you might want to have your property formally appraised prior to meeting with the appraisal district. However, in most instances, this is not necessary. If you are not successful in lowering your valuation at the informal hearing, you can appeal to the next level and contest the valuation before an appeals board.