Archive for the ‘Tax loopholes and exceptions’ Category

How the Texas Homestead Tax Cap Works

Published by TechTeam on January 28th, 2012 - in Tax loopholes and exceptions, Taxes, The Basics

 

How the Texas Homestead Tax Cap Works (in simple terms)

For homes that are receiving a homestead exemption, which is any property that the owner considers their primary residence, the appraised value may be lower than the property’s market value because of what the law refers to as the ‘homestead cap’.

Currently the law states that, while a property’s January 1st market value isn’t capped, the property’s appraised value is capped at a maximum increase of 10% from the previous year.

So, lets say

  • the market value of someone’s home on Jan 1st is 200,000$
  • But, the year prior it was only valued at 170,000$.
  • This years appraised value would be 187,000$, which is an increase of 10% from the previous year

But, in some situations, the value of the home can go down while the appraisal goes up.
Lets pretend that next year, something happens and

  • the home’s value drops from 200,000$ to 190,000$
  • The cap for that year would be 205,700$
  • The appraised value would increase from 187,000$ to 190,000$

and taxes would increase even though property value decreased

To qualify the owner must first receive the homestead exemption, then the value must increase more than 10% within a year.

For more informative tax articles and videos visit  fypllc.com
For a Property tax Loan visit TexasPropertyTaxLoans.com

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New Property Tax Exemption

Published by Research Editor on November 10th, 2011 - in Tax loopholes and exceptions
New tax exemption

 

On Tuesday, more than half a million Texas voters chose to grant tax exemption to surviving spouses of disabled veterans.

 

Proposition 1 transfers the homestead property tax exemption of a totally disabled veterans to their surviving spouse after the veteran’s death.  Prior to this, the exemption was lost when the veteran died, essentially giving the surviving spouse a sudden property tax bill along with the funeral costs.

 

In recognition of the sacrifice of veterans and their spouses, the proposition to give tax exemptions to surviving spouses passed with 83% support.

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Exemptions

Published by Research Editor on August 12th, 2011 - in Tax loopholes and exceptions, Taxes

Homestead exemption

Exemptions are one of your 12 rights as a taxpayer. For your principle residence, you have homestead exemptions available:

  • General residence exemption: $15,000 off your property value for school taxes
  • $3,000 exemption if your county collects a special tax for farm-to-market roads or flood control.
  • Age 65 or older: $10,000 exemption
  • Disabled: $10,000
  • Optional percentage exemption: a taxing unit may offer an exemption of up to 20% of home’s value, not less than $5,000
  • Optional 65 or older/disabled exemptions: a taxing unit may offer an additional $3,000 exemption to the $10,000 exemption.
  • Other exemptions

How do I get the $15,000 general residence exemption?

File an Application for Residential Homestead Exemption up to one year after your taxes are due.

Do I reapply each year for the $15,000 general residence exemption?

Nope. Just once, unless the chief appraiser sends you a new application.

What if I move?

If you move or are no longer qualified to receive the general exemption, inform the appraisal district in writing before the next May 1.

What are the “other exemptions” available?

That depends on your appraisal district. Dallas County, for example, offers exemptions for charitable organizations, religions, pollution control properties, goods exported from Texas, and certain motor vehicles. To find out your district’s exemptions, search online for “[Your County] property tax exemptions.”

100% disabled veteran’s exemption

  • Served in the armed forces of the US
  • Classified as disabled by the US Department of Veterans Affairs
  • Received 100% disability compensation from the VA
  • Received either 100% disability rating or classified unemployable by the VA
  • Own and live in your home.

How do I get this exemption?

Apply for the exemption with the appraisal district using this Application for Residential Homestead Exemption. Be sure to check the “100% Disabled Veterans Exemption” box on the second page.

What if I own the house with my spouse?

You are eligible for 100% exemption of your ownership interest. If you own the house equally with your spouse, that amounts to a 50% exemption.

What if I’m a partially disabled veteran?

You get a partial exemption. Check this document from the state for the exact dollar amount.

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