New and Top Exemptions
Learn the Property Tax Exemptions that have extended deadlines
The Texas legislature passed a law in the summer of 2017. It extends the deadline to file certain exemptions.
Great news for those needing last minute help!
New Changes Summary
The deadline has been extended to two years after the default date for that year. For example, you have until January 31, 2020, to file for the 2017 tax year.
The deadline has been extended to five years after the default date for that year. For example, you have until January 31, 2020, to file for the 2014 tax year.
Top 6 Exemptions We See the Most
A complete list can is on the Texas State Comptroller Website here.
1. The Homestead Exemption.
You can claim a Homestead Exemption on your primary residence.
To qualify you must be:
1) living there as of January 1st of that year.
2) List that address on your driver’s license.
This exemption gives you a discount on many taxing areas. It helps to lower the taxable value of your home. It puts a 10% limit on the increase of the taxable value for your property each year.
Joe’s property qualifies for a Homestead Exemption in 2019. The valued started at $100,000. In 2020 the market value jumped. The new year’s value is $200,000. Therefore, the 10% tax increase will go to $110,0000 ($100,000 + 10% = $110,000). Joe’s tax bill sets to $110,000 and not the $200,000. This save Joe a lot of money. The Homestead Exemption is quite helpful in our booming market.
The deadline to file for the Homestead Exemption is annual. It is one year after taxes were due. For example, you need to file for a Homestead Exemption for the 2018 tax year by January 31st, 2020. This is one year after your tax due date.
2. The Over 65 Exemption.
The year you turn 65 years old you get another tax break. You are eligible to claim an Over 65 Exemption on your homestead. The Over 65 exemption entitles you to bigger discounts. It is even more savings than the normal Homestead exemption. Plus it puts a limit on the tax you pay to your local school district. The limit will stay until there is more “value” to add to your property.
Example: Barbara turned 65 in 2019. She qualifies for the Over 65 tax exemption. That year her Austin Independent School District (ISD) tax bill is $5,000. Her exemption freezes that tax bill for upcoming years. This means she will not pay more than $5,000 to Austin ISD. Her tax freeze stays with her going forward. It remains set at that amount as long as she is in the state of Texas.
There are more advantages with The Over 65 Exemption. It allows you to defer paying property taxes. This is in effect as long as you own the property. It will continue to accrue 8% interest each year. However, it will is due once the property has sold or transfers ownership.
3. Disabled Person’s Exemption.
The benefits of this exemption are similar to the Over 65 exemption. It includes bigger discounts from certain tax entities. Plus it freezes the tax amount for the school district jurisdiction. You must meet the Social Security Administration’s definition of disability to qualify.
4. The Disabled Veteran Exemption.
Some US veterans qualify for a Disabled Veteran exemption. They must have a disability rating of 10% or more to claim this exemption. Furthermore, the discounts vary depending on your disability rating.
5. Solar and Wind-Powered Energy Devices.
Contact our office if you have these devices on your property.
The exemption removes the value of the devices from the taxable value of the property.
You may be eligible to claim the exemption but it may not be the best strategy. In some cases the exemption will not benefit you. To get the best savings talk to a Texas Protax specialist.
The application for this exemption is due by April 30th. Your property keeps this exemption until there are changes to the equipment.
6. Exemptions for Historical or Archaeological Sites.
Is your property is a designated historic building? Is it an archaeological site? Does it have historical significance? If true, then you may be eligible for a Historical or an Archaeological Exemption.
These conditions give discounts for some jurisdictions but not all. The discounts are different for every property. Contact our office for more information.
Call or email with questions
AUSTIN (512) 339-6671 email@example.com HOUSTON (713) 635-9100 firstname.lastname@example.org
For more information:
Texas Protax FAQ
News Regarding Tax Deductions
Changes to know for 2018, and beyond.
The IRS issues new guidelines regarding the deductions for tax prepayments.
The new guidelines from the IRS announce news regarding tax deductions happened in late 2017. The changes start with the 2018 taxes deductions. They are still in effect this year. The important thing to know relates to property taxes in escrow. Property taxes in escrow until the October tax bill is complete are no longer deductible.
The Austin American Statesman article about this:
The IRS provides more information and example:
Summarized from the IRS website
“In general, whether a taxpayer is allowed a deduction for the prepayment of state or local real property taxes in 2017 depends on whether the taxpayer makes the payment in 2017 and the real property taxes are assessed prior to 2018. A prepayment of anticipated real property taxes that have not been assessed prior to 2018 are not deductible in 2017. State or local law determines whether and when a property tax is assessed, which is generally when the taxpayer becomes liable for the property tax imposed.”
Do you have questions about your federal income taxes?
Texas Protax recommends contacting your CPA about your federal income tax.
Continue to check our site for more news regarding tax deductions.
Call or email with questions
For more information:
Texas Protax FAQ
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Storm Damage Information After Hurricane Harvey
Update: As of September 18, 2017
We hope this message finds you safe. As we all know, the impacts in the aftermath of Hurricane Harvey are many. Even if the storm did not directly affect your property, most have friends and family members who are dealing with the devastation. Our thoughts go out to each of you as you work to replace, rebuild and come out of this disaster.
During this difficult time of transition, we are here to answer your questions about your property value. Some of our clients are already asking us a few questions. This email answers questions already received, as well as, a few additional questions you may have.
Storm Damage Information and Concerns About Property Values
One question that has been raised concerns how the storm affects your value for the current tax year (2017). Specifically if your value for 2017 can be lowered due to the flooding and damage caused by the storm? The answer at this point is – maybe!
Since the Governor declared Harris and most of the surrounding counties a disaster area, it opens the door for a reappraisal of your property. However, neither the taxpayer, Texas Protax, nor the Appraisal District on their own have the authority to request or conduct a reappraisal after a disaster. The authority to request a reappraisal is in the hands of the local taxing jurisdictions. If a taxing jurisdictions within their boundary requests for properties to be reappraised, then the appraisal district must comply.
Furthermore, some of the taxing jurisdictions could request a reappraisal, while others may not. For example, the Houston Independent School District calls for the reappraisal of all properties within their boundary, but the new value is limited to only the Houston ISD’s taxing authority. It does not extend to Harris County, the City of Houston or any other jurisdiction. Also, if the property value is lowered based on the reappraisal request, then the taxes based on the lower value would be prorated from the date of the reappraisal through the end of the year. Therefore, you would be taxed from January 1st to August 24th at the full market value. Then from August 25th to December 31st on the new reappraised value. If more than one jurisdiction requests the reappraisal, then the new value would apply to all the jurisdictions that make the request.
We don’t think the value based on a reappraisal is one that can be protested. State law doesn’t require the appraisal district to send a notice of the new property value if the appraisal district lowers it. And the appraisal district may not send notices of the new valuations. If the appraisal district is ordered to reappraise property, then after the reappraisals, it will submit the new property values directly to the taxing jurisdiction.
Storm Damage Information and Another Concern About Evidence of the Flooding and Loss
The second question we are hearing a lot, is whether or not evidence of the flooding loss is used as evidence for this year’s (2017) taxes. The short answer is no. If the taxing jurisdictions do not request a reappraisal, then the value of your property is based on the condition as of January 1, 2017. Any damage or change that occurs after January 1 of the current tax year is not considered relevant as evidence at a hearing for 2017.
Although any evidence of damage may not be able to affect the value for 2017, we can definitely use your information for 2018! A few things to remember for 2018:
- Take pictures. Keep all receipts for repairs or insurance claims. This information helps at the hearings. We send you a Request for Information email in March 2018. Our annual questionnaire is an excellent time to share information.
- Tell us when your repairs are complete. We need to know which repairs were made before or after January 1.
- If you make all the repairs to your property prior to January 1, 2018, send us the information. Your repair information could be helpful in differentiating between a repair and a remodel.
Storm Damage Information and Special Rules for Homesteads
For property that is your homestead, please know there are special rules concerning them. The cap and reappraisal is in the year after a disaster. If you replace your home, be aware that when the new structure doesn’t exceed the original square footage and the exterior of the replacement is of similar quality as the original, then the appraisal district cannot change your homestead qualifications. They also can not increase your cap value by more than 10%. When you replace your home with a bigger or higher quality home, then the appraisal district can declare new value and add additional value to your previous cap value. We are happy to answer your questions concerning your homestead eligibility. Please do not hesitate to contact us!
We understand the stress and urgency during this time of disaster. Our promise is to continue to be available to help in any way we can with the appraisal and assessment of your property. Understand the reappraisal process is entirely out of our hands, and we will strive to keep you informed in a timely matter. As government agencies are coming back on line, we will look for announcements and information to keep you up to date on any changes that may come. We include bulletins from the Comptroller’s office with some additional information about disaster reappraisals. The letter from the Comptroller also includes a link to the Comptroller’s website with more information.
Our Gratitude for You
Thank you! You are a valued Texas Protax client. We commit to working with you during this difficult time of repair and rebuilding. Questions or concerns? Please let us know and we will gladly address them.
- Please see attachments from the Texas Comptroller of Public Accounts and also the Texas Property Tax Code concerning this issue.
Your Texas Protax Team
For more information:
Texas Protax FAQ