Deferral on Appreciating Residence Homestead

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State

Texas

Year

2020

Variations in Receipt of Benefit

No Variation in Receipt of Benefits

Benefit Type

Deferral

Benefit

An individual is entitled to defer taxes imposed on that portion of the individual's residence homestead that exceeds the sum of 105% of the preceding year's appraised value and the market value of all new improvements to the property. After an affidavit is filed under this subsection, a taxing unit may not file a suit to collect delinquent taxes on the property for which collection is deferred until the individual no longer owns and occupies the property as a residence homestead. A deferral under this section applies only to ad valorem taxes imposed beginning with the tax year following the first tax year in which the individual entitled to the deferral qualified the property for an exemption as a residence homestead.

How is Benefit Disbursed

Other

Eligible Property Type

Residential

Characteristics of Eligible Property

The property must be owned and occupied as a residence homestead by the applicant. In order to qualify as a residence homestead, the property must not exceed 20 acres and must be the principal residence of the owner, a surviving spouse, heir or a qualified trustor.

Eligibility Criteria

Homeowner

Principal Residence

Surviving Spouse

Other Criteria

Description of Eligibility Criteria

An individual may not receive this benefit if the portion of the property taxes that do not qualify for the deferral become delinquent. An unremarried surviving spouse may be eligible for the deferral. An heir property owner who qualifies their heir property as the owner's residence homestead is considered the sole owner of the property.

Local Option in Adoption of Program

Local government is unable to exercise an option

Local Option Regarding Program Features

No local option regarding program features

Description of State Funding for Tax Loss

The statutes is silent regarding whether the state reimburses local taxing jurisdictions.

Record ID

TX107_RR20

Footnotes

If a deferral had been granted in a prior tax year and, in the current tax year, the assessed value of the property declines below the sum of 105% of the preceding year's appraised value and the market value of all new improvements to the property, the deferral will be reduced. A tax lien remains on the property and interest continues to accrue during the period collection of delinquent taxes is deferred or under this section. The annual interest rate during the deferral or period is 8%. Interest and penalties that accrued or that were incurred or imposed before the date the individual files the deferral affidavit, are preserved. A penalty is not incurred on the delinquent taxes for which collection is deferred during a deferral period. An additional penalty may be imposed and collected only if the delinquent taxes for which collection is deferred remain delinquent on or after the 91st day after the date the deferral period expires.

Sources

Tex. Tax Code §33.065;
Tex. Tax Code § 11.13 (in effect for 2020)

Texas Comptroller of Public Accounts Tax Deferral Affidavit for Appreciating Residence Homestead Value Form 50-274
[https://comptroller.texas.gov/forms/50-274.pdf Accessed 11/10/2021]
View Archived Source

Harris County Appraisal District, Tax Deferral Affidavit for Appreciating Residence Homestead Value
[http://hcad.org/assets/uploads/pdf/forms/2017/33.065_2013_fillable.pdf Accessed 11/10/2021]
View Archived Source

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