Texas homeowners rely on homestead exemptions to lower their property tax burdens, but a recent legislative change means that these exemptions will no longer remain in place indefinitely. In late 2024, the Texas Legislature introduced a significant update to the Texas Tax Code that directly impacts homeowners benefiting from homestead exemptions. The new provision, outlined under Section 11.43 (h-1), mandates that appraisal districts implement a system for the periodic review of homestead exemptions granted under Section 11.13 of the code. The specific language of the statute states:
“(h-1) The chief appraiser of an appraisal district shall develop a program for the periodic review of each residence homestead exemption granted by the district under Section 11.13 to confirm that the recipient of the exemption still qualifies for the exemption. The program must require the chief appraiser to review each residence homestead exemption at least once every five tax years. The program may provide for the review to take place in phases, with a portion of the exemptions reviewed in each tax year.”
This legislative change means that every county appraisal district must now establish a process requiring homeowners to recertify their homestead exemptions every five years.
Why This Matters for Homeowners
For many homeowners, a homestead exemption is a crucial financial benefit, reducing the taxable value of their primary residence and, consequently, lowering their property tax burden. Traditionally, once a homeowner qualified for the exemption, it remained in place unless the homeowner moved or became ineligible. With this new law, that assumption is no longer valid. Now, every homeowner must actively verify their continued eligibility at least once every five years.
What Homeowners Need to Do
The most critical action homeowners can take is to stay vigilant about correspondence from their local appraisal district. Many property owners tend to disregard mail from the appraisal district, assuming it contains routine notices. However, under this new law, such correspondence may include time-sensitive requests for recertification.
To ensure continued eligibility for the homestead exemption, homeowners should:
- Carefully review all mail from the county appraisal district. Any requests for verification should be addressed promptly.
- Be prepared to provide documentation. Recertification may require submitting proof of residency, typically a current driver’s license with a matching address.
- Know the specific process for their county. Different counties are implementing the recertification process in different ways, so homeowners should be aware of the procedures applicable in their location.
How This Varies by County in Central Texas
Each county in Texas has the autonomy to determine how it will conduct the recertification process, meaning that requirements and methods will vary. Here’s how three major Central Texas counties are handling the new rule:
- Travis County: The Travis Central Appraisal District (TCAD) is mailing verification forms to homeowners. If you receive one of these forms, it is essential to complete and return it promptly to maintain your exemption.
- Williamson County: The Williamson Central Appraisal District (WCAD) is offering an online portal for homeowners to verify their homestead exemption status. While they may also send mail notifications, homeowners should check their eligibility and submit required documents online when prompted.
- Hays County: The Hays Central Appraisal District (HCAD) is providing both online and mail-in options for recertification. Homeowners can choose the method that works best for them, but must ensure that they complete the process within the given timeframe.
The Consequences of Inaction
If a homeowner does not respond to a verification request, they risk losing their homestead exemption. This would result in an increase in their taxable home value, leading to higher property tax payments. Given the significant financial impact, it is critical that homeowners take this requirement seriously and complete the recertification process as required.
Navigating Texas property tax laws can be complex, but staying informed about changes like the new homestead exemption review requirement is crucial for homeowners. By being proactive and responding to verification requests, you can protect your exemption and avoid unexpected increases in your property taxes.
If you have questions about how this change affects your property or need guidance on maintaining your exemption, Prism Realty – A RowCal Company is here to help. Our experienced real estate professionals can provide insights into local tax policies and assist you with any property-related concerns. Contact us today to ensure you’re prepared for these changes and to explore your homeownership options with confidence.
