You May Qualify For a 2021 Property Tax Exemption!
On February 12, 2021, Governor Abbott declared the entire state of Texas a disaster area. Tax Code Section 11.35 allows a qualified property that is at least 15 percent damaged by a disaster to receive a temporary exemption of a portion of the appraised value of the qualified property.
IS MY PROPERTY QUALIFIED?
Qualified Property Includes:
Residential buildings (homes), commercial buildings (businesses), industrial buildings (manufacturing), multi-family buildings (apartments), and other real property buildings; and certain manufactured homes; and tangible business personal property used for income production if owner filed a 2021 rendition.
WHAT IS MY DAMAGE RATING?
The appraisal district determines if the property qualifies for the temporary exemption and assigns a damage assessment rating of Level I, II, III or IV based upon available information. The district may rely on information from a county emergency management authority, the Federal Emergency Management Agency (FEMA) or other appropriate sources like insurance adjusters or repair estimates when making this determination.
WHAT WILL THE AMOUNT OF MY EXEMPTION BE?
For real property, the damage assessment and exemption calculations will be based on the 2021 appraised value of the buildings only.
The amount of the exemption is determined by multiplying the building or business personal property value, as applicable, by the exemption percentage based on the damage assessment level and is then multiplied by a proration factor (the number of days remaining in the tax year after the date the governor declares the disaster is divided by 365). The appraisal district must send written notice of the approval, modification, or denial of the application to the applicant. This exemption will expire on January 1, 2022.
Sample 2021 Disaster Exemption Calculation
- A $100,000 house received $20,000 in damage from burst pipes that resulted in nonstructural damage.
- $20,000 Damage / $100,000 house value = 20%, exceeding the 15% minimum. Damage Rating is Level I
- $100,000 House Value times 15% exemption percentage = $15,000
- $15,000 times proration factor 0.88 = $13,200 exemption amount reducing the taxable value for 2021
WHAT DO I DO NOW?
Complete the exemption application Form 50-312. Contact your local appraisal district for instructions on how to submit your application.
