FActs vs misinformation

✺ common misconceptions ✺

  • Homestead exemptions qualify for up to 20 acres, no matter how many parcels that land is in.

    What they rarely inform you of is that if you have not been claiming the exemption to its full benefit but have qualified for it, they can apply it going back two years.

  • Many people believe that when they protest, they are in fact protesting their taxes. This is incorrect, as no one is allowed to protest their taxes. When you protest through the appraisal district you are protesting your property value (which represents your piece of the pie). By protesting, what you are saying is that the value of your property and the percentage of the total roll that you are responsible for based on that value are incorrect. In other words, you are being held responsible for more than your fair share.

  • Once you turn 65 your taxes can still change. If you purchased 50 unimproved acres and lived in a RV until you qualified for this exemption and then built a mansion, that wouldn’t be very fair.

    Therefore, that’s not the system that was set up. If you have the money to build it after you turn 65 and claim the exemption then you can pay taxes on it.

    You’ll maintain the original freeze plus the new value. If you add any permanent improvements after you turn 65 you are liable to pay taxes on them. Word to the wise notify the district when you make these changes. It can come back to bite you if you are secretive now.

  • AG is not an exemption; it's a special valuation.

    The State of Texas allows for tax breaks based on ranch and wildlife , but again, it is not an exemption.

    An Exemption is a set amount of value that is removed before a tax rate is applied.

  • Did you know you only receive a notice if your value increases by $1,000.

    Here’s the kicker, we are talking about your total market value increasing, not your taxable liability.

    Your taxable liability can increase and no one is required to notify you.

  • Values are not increased to generate more revenue. Your property value represents your “piece of the pie” as it were.

    Based on the value of your property in comparison to other residents in the area your responsibility for the total needed revenue is ____ %.

    The total dollar amount you pay in taxes isn’t determined by your property value alone.

    Every entity that your property resides within, determine their budgets at the same time that you are protesting.

    Those entities receive a preliminary “roll”. This is all of the values throughout the county, prior to protest. But during the protest process values can change on a major level.

    Which is why the tax rates themselves aren’t set until September.

    The entities need a certain amount of funds just to operate and they will adjust tax rates as necessary in the fall to make sure they have that funding at the very least.

Disclaimer: Prickly Pair Consulting, does not currently operate as a property tax agency, our licensing is that of Registered Professional Appraisers (RPA’s). This is the required licensing for Property Tax Appraisers Working for the state of Texas. As such we can consult on Appraisal District Record only.