Property is taxable unless the owner shows that it meets all legal requirements for a total or partial exemption. A partial exemption excludes a percentage or a fixed dollar amount of the value for taxation.
A property owner must apply for exemptions from property tax in most cases.
Appraisal district chief appraisers determine whether or not property qualifies for an exemption.
But if unsatisfied, property owners have the right to appeal the chief appraiser’s exemption determinations, including the denial of an exemption. However, an individual property owner may not challenge the grant of an exemption to another property owner.
Taxing units may appeal the granting of an exemption to a particular property owner.
Know more about appealing or protesting your property's tax appraisal here.
Exemption applications ask for information pertaining to the exemption issue. Most exemption qualification are based on one or more of the following:
A property owner is expected to produce evidence to prove eligibility to claim the exemption.
Learn about the Types of Property Tax Exemptions you can claim in the state of Texas here.
Some tax exemptions require the property owner to file an application one time and others require the property owner to file an application annually. Most one-time exemptions allow the chief appraiser to request a new application to verify that a property or property owner remains eligible for the exemption.
Here is a list of property tax exemptions that require no application, annual application and one-time application unless requested by the chief appraiser.
No application required:
|Tax Code Section||Exemption|
|11.14||Tangible Personal Property Not Producing Income|
|11.141||Precious Metal Held in Precious Metal Depository|
|11.145||Income-Producing Tangible Personal Property Having Value Less Than $500|
|11.146||Mineral Interest Having Value of Less than $500|
|11.161||Implements of Husbandry|
|11.25||Marine Cargo Containers Used Exclusively in International Commerce|
Annual application required:
|Tax Code Section||Exemption|
|11.111||Public Property Used to Provide Transitional Housing for Indigent Persons|
|11.1801||Charity Care and Community Benefits Requirements for Charitable Hospital|
|11.181||Charitable Organizations Improving Property for Low-Income Housing|
|11.1825||Organizations Constructing for Rehabilitating Low-Income Housing: Property Not Previously Exempt (Note: See provisions of 11.1826)|
|11.184||Organizations Engaged Primarily in Performing Charitable Functions (Note: Reapplication required every fifth tax year instead of annually.)|
|11.185||Colonia Model Subdivision Program|
|11.23(b)-(g), (i), (k) or (l)||Miscellaneous Exemptions: Federation of Women’s Clubs; Nature Conservancy of Texas; Congress of Parents and Teachers; Private Enterprise Demonstration Associations; Bison, Buffalo and Cattalo; Theater Schools; Community Service Clubs; Scientific Research Corporations; and Incomplete Improvements|
|11.251||Tangible Personal Property Exempt|
|11.252||Motor Vehicles Leased for Personal Use|
|11.253||Tangible Personal Property in Transit|
|11.28||Property Exempted from City Taxation by Agreement|
|11.311||Landfill-Generated Gas Conversion Facilities|
|11.32||Certain Water Conservation Initiatives|
One-time application required, unless requested by the chief appraiser:
|Tax Code Section||Exemption|
|11.131||Residence Homestead of 100 Percent or Totally Disabled Veteran|
|11.132||Donated Residence Homestead of Partially Disabled Veteran|
|11.133||Residence Homestead of Surviving Spouse of Member of Armed Forces Killed in Action|
|11.184||Residence Homestead of Surviving Spouse of First Responder Killed in Line of Duty|
|11.182||Community Housing Development Organizations Improving Property for Low-Income and Moderate-Income Housing: Property Previously Exempt (Note: See provisions of 11.182(e)(3), 11.182(g) and 11.1826)|
|11.1827||Community Land Trust|
|11.183||Association Providing Assistance to Ambulatory Health Care Centers|
|11.19||Youth Spiritual, Mental and Physical Development Associations|
|11.22||Exemption for Disabled Veterans|
|11.23(a), (h), (j), (j-1) or (m)||Miscellaneous Exemptions: Veterans Organizations; County Fair Associations; Medical Center Development; Medical Center Development in Populous Counties; and National Hispanic Institute|
|11.231||Nonprofit Community Business Organization Providing Economic Development Services to Local Community|
|11.254||Motor Vehicle Used for Production of Income and for Personal Activities|
|11.27||Solar and Wind-Powered Energy Devices|
|11.271||Offshore Drilling Equipment Not in Use|
|11.30||Nonprofit Water Supply or Wastewater Service Corporation|
|11.31||Pollution Control Property|
|11.315||Energy Storage System in Nonattainment Area|
|11.33||Raw Cocoa and Green Coffee Held in Harris County|
|11.35||Temporary Exemption for Qualified Property Damaged by Disaster|
|11.437||Exemption for Cotton Stored in Warehouse|
Unless there is a late application provision in the law, if the owner fails to submit the required application on time, he or she forfeits the right to claim the applicable exemption.
The general deadline to file an exemption application is May 1.
Charitable organizations improving the property for low-income housing and community housing development associations must file the application for exemption within 30 days of acquiring the property.
An appraisal district's Chief Appraiser has the following responsibilities associated with exemption applications:
A property owner is entitled to a written notice of a modification or the denial of an exemption application and may protest such before an Appraisal Review Board (ARB).
A chief appraiser may deny an application of a number of reasons, including but not limited to the following:
Articles presented here are for general information and education only. It is provided as a courtesy to the general public. SQD Taxtech LLC does not warrant that it is accurate or complete. Opinions expressed and estimates or projections given are those of the authors or persons quoted as of the date of the article with no obligation to update or notify of inaccuracy or change. This article may not be reproduced, distributed or further published by any person without the written consent of SQD Taxtech LLC. Please cite source when quoting.
SQD Taxtech LLC, its managed affiliates and subsidiaries, as a matter of policy, do not give tax, accounting, regulatory or legal advice. Rules in the areas of law, tax, and accounting are subject to change and open to varying interpretations. You should consult with your other advisors on the tax, accounting and legal implications of actions you may take based on any strategies presented, taking into account your own particular circumstances.