THE CHIEF'S APPRAISAL: Claiming more than one exemption has side effects
The property tax exemption commonly referred to as the homestead exemption is technically called a residential homestead exemption because you can only get the exemption on your principal residence. Here is a synopsis of what the law says. A family or single adult is entitled to an exemption on the assessed value of his residence homestead. Residence homestead includes the land, not to exceed 20 acres, and improvements used in the residential occupancy of the structure. The structure must be designed or adapted for human residence, used as a residence and occupied by the owner as his principal residence.
So basically, you have to own the property and reside in the property as your principal residence on January 1st to claim the exemption. In order to confirm that you meet all the requirements, we will need a copy of your driver’s license or DPS identification card. The address on the driver’s license must be the same as the property for which you are claiming the exemption. We know that you don’t like us telling you that you have to get a new driver’s license because it will cost you money to do so, but in Texas, the law already requires you to change your address on your driver’s license within 30 days. I’m fully aware that it’s an inconvenience, but the benefit of the exemption ($300 at the minimum) should help ease the pain and unpleasantness.
When you purchase a new home and file a residential homestead exemption on the new property, you are legally required to notify the appraisal district that you no longer qualify for the exemption on the other property.
Most people tell us that they aren’t asking for more than they are entitled to, but they do want all that they are entitled to. If your situation differs from the above scenario, you may still qualify, but the process will get a little more difficult. It’s not that we enjoy making you jump through hoops, but we are trying to ensure that we are in compliance with the law when our records get audited.
If you became the owner of the property through a process other than through a deed transfer, for instance a divorce or probated will, we will need to see the legal document that conveyed the property to you.
A husband and wife who own multiple houses can only claim the residential homestead exemption on the home they live in. When the owner(s) dies, the property will no longer qualify for the exemption and will need to be removed for the next year. Usually the property is sold and we are able to remove the exemption with the ownership change; however, if the property is not sold and we are not notified, the exemption will remain as an erroneous assessment and subject to back assessments when the error is discovered.
We have recently completed an audit of our homestead exemption and will be notifying owners who have received duplicate or erroneous exemptions that they will be back assessed for the applicable years. Texas courts have ruled that the county appraisal district and chief appraiser have a nondiscretionary duty to back-appraise property that has been erroneously exempted for up to five years.
