Homeowner Alert: Updated Texas Homestead Exemption Rules for Audits

Here’s what you need to know about the new Texas homestead exemption rules for audits:

• Recent legislation now requires Texas homesteads to be audited once every five years to ensure eligibility and accuracy of records.
• If required, you must submit a verification form with a valid ID to the appraisal district by the given deadline.
• If you fail to verify your eligibility by the deadline, you risk losing your exemption status and receiving a higher property tax bill as a result.
• Gill, Denson & Company is here to help you navigate the audit process and protest your exemption status if you’re incorrectly deemed ineligible.

The New Texas Homestead Exemption Rules for Audits

A new bill passed in the last Texas legislative session requires homesteads to be audited once every five years. County appraisal districts (CADs) conduct these audits to ensure their records are accurate and property owners are still eligible for the exemption(s) they claim (Texas Property Tax Code 11.43 (h-1)).

Many Texas CADs began the audit this fall and started sending notice letters to property owners requesting exemption eligibility verification. If you don’t receive one, they either were able to confirm your eligibility or may not have reviewed yours yet. There are hundreds of thousands of properties to audit, and this process may spread out over the next five years.

How Do I Verify My Exemption Eligibility?

If you’re required to verify your eligibility, submit a completed verification form with a copy of your current Texas driver’s license or ID card. Make sure the address on your ID matches the exemption property’s address. You should receive a form with your notice letter, but for larger counties, it is also available to submit on your local appraisal district website. Smaller counties will typically prefer mailed forms. We recommend to certify mail completed forms to the appraisal district if you do this on your own. If you are a client and want our office to help, we will certify mail your documents and submit them electronically as your tax agent. 

What Happens If I Don’t Verify My Information?

It’s very important that you verify your information by the given deadline, found in your notice letter. If you don’t, there may be a processing delay, an incorrect homestead cap calculation, or removal of your exemption(s). As a result, your property tax bill may increase according to the new taxable value without the exemption. 

The CAD will take action within 90 days from the date your verification is received. If they determine you’re no longer eligible for your exemptions, they’ll notify you. You will then have the opportunity to protest their decision and reestablish your eligibility.

Gill, Denson & Company Is Here to Help You

Gill, Denson & Company is proud to work with thousands of Texas homeowners on their property taxes each year. Part of our services to our clients includes assistance with these homestead exemption audits. If you are a client of ours and your homestead requires verification, your CAD will also notify us. If they deem your property to no longer be eligible, our team of experts is ready to assist you in protesting the status of your property.

Have questions about the new Texas homestead exemption rules and audit process? Contact us today! We’re also ready to assist you in protesting your property tax bill and ensuring you only pay your fair share of taxes.