FREQUENTLY ASKED QUESTIONS
Click on a topic below to scroll directly to the list of related FAQs. If you need additional assistance, please contact us.
ABOUT TCAD
Each Texas county is served by an appraisal district that determines the value of all of the county’s real and personal property. Generally, a local government that collects property taxes, such as a county, city and school district, is a member of the appraisal district.
Taxing entities are the local government entities such as cities, hospital districts, junior colleges, and municipal utility districts. Taxing entities provide services to the taxpayers they service such as schools, roads, police, fire, and other services taxpayers expect.
We have discontinued accepting fax communications. We accept US mail, email and hand delivery.
Property is taxed by the authority of the Texas Constitution. The Constitution sets forth five basic principles for property taxes in Texas.
- Taxes must be equal and uniform. No single property or type of property should pay more than its fair share.
- Property must be appraised on its current market value meaning the price that it would sell for on the open market when both the buyer and seller seek the best price and neither is under pressure to buy or sell.
- Each property in a county must have a single appraised value. This is guaranteed by the use of the county appraisal districts.
- All property is taxable unless federal or state law exempts it from the tax.
- Property owners have a right to reasonable notice of increases in their appraised property value.
EXEMPTIONS
A homestead exemption lowers your property taxes by removing part of the value of your property from taxation. There are several different types of homestead exemption, including the general residence homestead exemption and exemptions for seniors, people and veterans with disabilities, and some surviving spouses.
You do not have to reapply for a homestead exemption unless the Chief Appraiser requests a new application in writing, you move to a new residence, or your qualifications for an exemption change.
State law requires an appraisal district to audit our exemption records every five years. If the District needs more information to confirm you benefits should continue, you may be asked to reapply.
To qualify for a homestead exemption, you must own and occupy the property on which you are applying. If you recently purchased a home, you may submit the form now and the homestead will be applied to the year in which you qualify.
Yes. Please include a copy of your title to the mobile home or a verified copy of your purchase contract along with your exemption form.
There is no fee to file and you do not have to hire anyone to file for you. It is not necessary for homeowners to pay anyone to file for a homestead exemption or to obtain a refund for the late filing of a homestead or senior citizen exemption.
No. Per the Texas Property Tax Code, the district cannot accept a passport or Concealed Handgun License (CHL) for this purpose. A Texas Drivers License or a DPS ID displaying the property address are the only acceptable forms of identification that the appraisal district can use.
If you apply through our homestead portal, you will receive an email notification upon processing.
Homestead status is displayed on our website. Please check our website to verify the homestead has been added to your account at the appraisal district, usually 4-6 weeks after your submission.
No. You may only receive a homestead exemption on one property, your primary residence.
You may file a late homestead exemption application if you file it no later than two years after the date the taxes become delinquent.
The property you own with another person may qualify for a prorated homestead exemption based on the other person’s ownership in the property and if he/she does not have another property with a homestead exemption. You will not qualify because you already have a homestead exemption for your primary residence.
The law requires an annual application by April 30 for some types of exemptions, including property exempted from Taxation by Agreement (Property Tax Abatement), Historical and Archeological Sites, Miscellaneous Exemption, Low Income Housing Exemption, and exemption of Freeport Goods.
Cemeteries, charitable organizations, youth development organizations, religious organizations, non-profit private schools, and exemption of Pollution control property approved by the Texas Commission on Environment Quality (TCEQ) do not have to reapply for the exemption each year once the property tax exemption is granted, unless by written notice, the Chief Appraiser requests the property owner to file a new application. However, if their exempt property changes ownership or if their qualifications for exemption change, they must reapply.
State law allows you to claim the portion of your land that you maintain for residential purposes, but this amount may not exceed 20 acres. Generally, one acre or less is maintained for homestead purposes.
There is no fee to file and you do not have to hire anyone to file for you. It is not necessary for homeowners to pay anyone to file for a homestead exemption or to obtain a refund for the late filing of a homestead or senior citizen exemption. Homestead exemption forms are available on our website.
You may apply online or complete a paper application. If you complete the paper application, you may submit it in several ways:
By email: [email protected]
By mail: PO Box 149012 Austin, TX 78714-9012
By office drop box: 850 E. Anderson Ln. Austin, TX 78754
While the homestead exemption requires you to own and occupy on January 1 to qualify, the following exemptions do not. You must own and occupy your property at some point in the tax year you are applying for to obtain the following exemptions on a qualified residence:
- Over 65: You may apply at any time during the year you turn 65 years of age
- Disabled Person: You must be unable to engage in gainful work due to disability or age 55 years or older, blind, and unable to engage in your previous work because of blindness
- 100% Disabled Veteran Homestead: You must be rated 100% disabled or paid 100% compensation due to service connected disability
It can take up to 90 days to process a homestead exemption application. A property owner can always check the status of their application using our online portal or the property search function on our website.
An over 65 exemption will stay on the property until the end of the year unless the previous property owner requests that it is removed. If that happens, the property’s new owner may receive a property tax bill that is higher than estimated. Property owners should contact their title company to review how the exemptions were discussed during closing.
Yes. If your exemption is denied, you will receive a written notice in the mail. That notice will include a brief explanation of why the application was denied and how you can appeal.
Over 65 senior tax ceilings, also known as a tax freeze, are recalculated on an annual basis due to the passage of Proposition 1 in May 2022 and Proposition 4 in November 2023. The specifics of how a tax ceiling is recalculated can be found in Section 11.26 of the Property Tax Code. TCAD is unable to provide a specific breakdown of these calculations for your property. However, we do provide our estimates of your ceiling amount on our website and at TravisTaxes.com. The official calculation of property’s tax ceiling and property tax bill is done by the Travis County Tax Office.
The Travis Central Appraisal District audits our exemption records every five years to ensure they are accurate. In some cases, we may reach out to a property owner to ask for more information to confirm that the exemptions on a property should continue.
Property owners who are asked to reapply to verify their exemptions should continue need to submit an updated exemption application with a valid Texas driver’s license or ID. The address on the license or ID must be the same as the exempted property.
Property owners who don’t verify their eligibility will have their exemptions removed from their property. This will change the property’s tax liability.
Yes. You should reapply for your exemptions as soon as possible. After verifying your information, your exemptions will be reinstated. If it has been more than two years since your exemptions were removed, your benefits will be reset.
Property owners asked to verify their exemption status will receive a letter with additional information, including the deadline to respond. Property owners with a portal account will also receive electronic notifications and reminders as their deadline approaches.
Property owners asked to reapply will receive a letter in the mail notifying them of the requirement, deadline, and process. Property owners with a portal account with also receive electronic notifications and reminders.
We do not recommend reapplying for your exemptions unless you are asked to do so.
To qualify for a homestead exemption, a property owner must own and live on the property as their primary residence. A property owner cannot claim a homestead exemption on any other property. Additional qualifications exist for individuals over 65, disabled persons, disabled veterans, and surviving spouses. A full list of the requirements for each exemption is available online.
Property owners may be required to pay back taxes up to five years if it is determined that they were claiming exemptions on another property or claimed another property as their primary residence during that period.
NOTICES OF APPRAISED VALUE
TCAD uses deed records recorded with the Travis County Clerk’s office to correct ownership information. Verify that your deed has been filed with the Travis County Clerk at (512) 854-9188. If, after 90 days from the date of the closing the property, the appraisal records do not reflect the current ownership, please contact the Travis Central Appraisal District at (512) 834-9317.
If you have a tax agent or representative you will not receive the notice. The notice is mailed to the agent of record. Please contact your tax agent for a copy of the notice.
If your property value increased $1,000 or less, a notice of appraised value will not be mailed. Property values are available on the TCAD website after notices have been mailed.
Notices of Appraised Value are mailed out in April.
If you purchased a property that will be split after January 1st, then the ownership will not be updated until the following calendar year.
Your property’s “assessed” value is not the same as its “market” value. The market value of your property may increase or decrease by any amount year-to-year. If you have a residential homestead exemption on your property, the increase in your assessed value is limited from year-to-year to 10% so long as changes have not been made that add “new value” (such as an “addition”).
Value changes may occur for several reasons. Often sales information may indicate the current appraised value is lower/higher than fair market. Also, corrections to appraisal records may affect value, such as a change in square footage, a pool not previously accounted for, or a correction of a property characteristic.
In appraisal, the term “improvement” is a building, structure, fixture, or fence erected on or affixed to land; or a transportable structure that is designed to be occupied for residential or business purposes, whether or not it is affixed to land, if the owner of the structure owns the land on which it is located, unless the structure is unoccupied and held for sale or normally is located at a particular place only temporarily.
Fair market value means the price at which a property would transfer for cash or its equivalent under prevailing market conditions if: Exposed for sale in the open market with a reasonable time for the seller to find a purchaser. Both the seller and the purchaser know all of the uses and purposes to which the property is adapted and for which it is capable of being used and of the enforceable restrictions on its use. Both the seller and the purchaser seek to maximize their gains and neither is in a position to take advantage of the exigencies of the other.
PROPERTY TAXES
Penalty and interest charges begin accumulating on most unpaid tax bills on February 1 of each year.
Taxes are due when you receive your tax statement around October 1st. You have until January 31st of the following year to pay your taxes at the Tax Collector’s Office.
TCAD processes the deferral request and sends the information to the Travis County Tax Assessor’s Office. You may contact the tax office with any concerns or questions you may have.
Property is taxed by the authority of the Texas Constitution. The Constitution sets forth five basic principles for property taxes in Texas.
- Taxes must be equal and uniform. No single property or type of property should pay more than its fair share.
- Property must be appraised on its current market value meaning the price that it would sell for on the open market when both the buyer and seller seek the best price and neither is under pressure to buy or sell.
- Each property in a county must have a single appraised value. This is guaranteed by the use of the county appraisal districts.
- All property is taxable unless federal or state law exempts it from the tax.
- Property owners have a right to reasonable notice of increases in their appraised property value.
The taxing entities set the tax rate which determines how much property tax each property owner pays.
If you do not pay your taxes by the deadline, penalty and interest charges will be added to your original tax obligation and you will receive delinquent tax notices. You may be sued and you may face problems selling your property.
If you are having difficulty paying your property taxes, contact your local tax office. You may have the option to set up an installment plan. In some cases, you may be able to request a deferral or all or a portion of your tax bill.
Yes. To request that TCAD merge your properties, complete the required request form. The Travis Central Appraisal District typically processes these requests towards the end of the calendar year. In order to be processed timely, requests should be submitted before January 1 of the year. Property owners will be able to view the changes in mid-April by using the property search feature on our website.
Yes. To request that TCAD split your property, complete the required request form. The Travis Central Appraisal District typically processes these requests towards the end of the calendar year. In order to be processed timely, requests should be submitted before January 1 of the year. Property owners will be able to view the changes in mid-April by using the property search feature on our website.
PROTESTS
Your protest will be dismissed if you do not appear in person, through a valid affidavit, by agent, or by pre-scheduled telephone hearing. You may request that the ARB Chairperson reopen the hearing by sending a letter within 4 days of your scheduled hearing citing the good cause reason for failure to appear.
In-person hearings are conducted at the Travis Central Appraisal District office located at 850 E Anderson Lane. The hearing letter you receive will have specific instructions regarding the location of your hearing.
The Appraisal Review Board (ARB) sets protest hearing schedules. You will receive a notice of protest hearing letter by general mail at least 15 days before the scheduled formal hearing date. Included with that letter will be a copy of Property Taxpayer’s Remedies (a publication of the State Comptroller’s Office), a copy of the ARB hearing procedures, and a statement that you have the right to inspect the information that the Appraisal District plans to introduce at your hearing.
Please bring your hearing letter to expedite the check in process. You should also bring any information that you want to present to support the value you think is correct. Bring 5 sets of the evidence to the formal hearing.
Yes, at least 48 hours prior to your formal hearing please notify the district and we will arrange for an American Sign Language interpreter. Please send the request to [email protected].
All property owners who file a protest will have access to TCAD’s evidence packet via the online portal. To access this evidence, you must have an online account using the property owner ID and pin number on your Notice of Appraised Value. Property owners may inspect and/or make copies of the evidence at the appraisal district’s office 14 days prior to their scheduled hearing during normal business hours by informing staff at the Customer Service department that they wish to inspect their evidence and providing staff with the account number(s) for the property protested. The evidence packets for ARB hearings are not the same as information requested under the Public Information Act.
Yes.
If you have hired a license property tax consultant, they will obtain written authorization from you giving them permission to represent you in a hearing. If your representative is an attorney, they will be allowed to swear, under oath, that they are your authorized representative. If your representative is a family member or friend, you must provide written authorization, signed by you, naming the person to represent you. This can be done by completing the Comptroller’s Authorization of Agent form or showing another piece of appropriate documentation, such as a power of attorney. The person you select should be able to discuss the property from personal knowledge and should file the documentation as soon as possible. At the very least, the person must bring the appropriate documentation to the ARB hearing.
You may bring someone with you to the hearing that can speak during the hearing. However, in this circumstance, you must be present to identify on the record that the person is speaking on your behalf.
Per Section 22.27 of the Texas Property Tax Code, the Appraisal District is prohibited from disclosing sales information gathered from a private source. Taxpayers who have protested his or her property value are entitled to the sales used to value his or her property, but no other sales information.
The affidavit and supporting documents must be received by the ARB before the scheduled hearing date. Delivering them to our office in person is best. If you mail them, it is a good idea to send them return receipt requested. Be sure to mail them in plenty of time and be sure the address is correct. The affidavit must state that you swear or affirm that the information it contains is true, and sworn to before someone authorized to verify the Affidavit . Be sure to clearly place in the affidavit or a cover letter, the property owner’s name, address, account number, property description, and the date and time of the hearing.
Taxpayers may also purchase a copy of our GIS shape file that include all of Travis County. You must have GIS or ESRI to use the GIS shape file. This information can be put onto a CD or transferred to an FTP site. The cost is $25.
Yes, an electronic copy of the entire appraisal roll data is made available free of charge on the appraisal district website. Upon a request the Appraisal District can provide PDF copies of the appraisal roll by property type, subdivision, zip code, and several other predefined criteria. The cost for PDF appraisal rolls are $5. Please contact the Records Coordinator for a list of predefined criteria. Additional criteria for PDF creation may be requested but will incur programming and manipulation charges.
If the foreclosed property was given an adequate exposure to the market, there was no attractive financing associated with it, the closing and repair costs were typical, and the sale is representative of its neighborhood, then it will. If the price it sold for is not consistent with the marketplace of a property with similar quality and condition, it will not.
Property owners who protest their market value can schedule an informal meeting with a TCAD appraiser using TCAD’s Get in Line Online system. Property owners can either schedule themselves for a specific date and time or can get in line for the day’s queue. Owners will receive text message updates as their place in the day’s queue line changes.
Property owners can have one informal meeting per property. If you have not had your meeting, you can use TCAD’s Get in Line Online feature to schedule one.
By law, a protest must be filed before the statutory deadline. A protest that was not filed with the Appraisal Review Board or turned over to the U.S. Postal Service or a private carrier by the statutory deadline is too late.
A property owner can file a late protest and show good cause for filing late. If circumstances such as a serious illness prevent you from filing your protest on time, you can file late (up until the ARB approves the appraisal records in mid-July) and include a statement explaining your circumstances, along with documented verification. The ARB may decide to accept and hear your late protest.
Yes. If you filed an online protest, you can withdraw your protest using the online portal. Otherwise, you can contact the ARB directly at [email protected]. Please provide your name, property address, PID and hearing date.
The ARB is an independent entity. TCAD staff are unable to address long wait times.
The ARB must postpone a hearing upon request by the property owner if the hearing has not started within 2 hours or more after its scheduled start time. The postponement request from the owner appearing in-person must be made prior to the owner leaving the building. The postponement request from an owner appearing via phone must be emailed to [email protected] by the end of the day of the scheduled hearing. Property owners must attach a phone screen shot showing a wait time of 2 or more hours from the scheduled hearing start time.
A property owner should be prepared to again wait a minimum of 2 hours from the rescheduled hearing start time.
A property owner or a designated property tax consultant who leaves before 2 hours have passed from the scheduled hearing start time may not reschedule their hearing. The property owner forfeits the protest.
Yes, your hearing can be rescheduled by submitting a written request prior to the scheduled upcoming hearing date. Property owners are entitled to one reschedule.
Property owners or property tax consultants can request that their upcoming formal hearing be a rescheduled at traviscad.org/reschedule.
This link is only for property owners submitting a first-time request and property tax consultants with proof of conflict with another CAD.
OR
Owners/Agents can send an email requesting a reschedule to [email protected].
Agents should send proof of conflict with another ARB to [email protected].
If you are not able to attend the rescheduled protest hearing, you may submit a notarized “Property Owner’s Affidavit of Evidence” which can be used as your appearance, so that evidence you submit can be considered by the ARB panel. The affidavit must be received prior to the hearing. The affidavit will only be used if you do not appear in person.
If you miss the rescheduled date, you will forfeit your protest.
Yes. If your exemption is denied, you will receive a written notice in the mail. That notice will include a brief explanation of why the application was denied and how you can appeal.
RESIDENTIAL
Texas Tax Code §25.025 permits certain persons to request that the appraisal district restrict from public access any information in the appraisal district records required by §25.02 that could be used to identify their home addresses.
The State Comptroller of Public Accounts prescribes the form on which these confidentiality requests may be made. Copies of the form 50-284 are available in our form library.
Value changes may occur for several reasons. Often sales information may indicate the current appraised value is lower/higher than fair market. Also, corrections to appraisal records may affect value, such as a change in square footage, a pool not previously accounted for, or a correction of a property characteristic.
In appraisal, the term “improvement” is a building, structure, fixture, or fence erected on or affixed to land; or a transportable structure that is designed to be occupied for residential or business purposes, whether or not it is affixed to land, if the owner of the structure owns the land on which it is located, unless the structure is unoccupied and held for sale or normally is located at a particular place only temporarily.
If the foreclosed property was given an adequate exposure to the market, there was no attractive financing associated with it, the closing and repair costs were typical, and the sale is representative of its neighborhood, then it will. If the price it sold for is not consistent with the marketplace of a property with similar quality and condition, it will not.
It will be added to the tax roll at the percentage of completion as of January 1st.
Yes, but the increase in the fair market value may override the age depreciation.
The district first collects detailed descriptions of each taxable property in the district. It then classifies properties according to a variety of factors such as size, use and construction type. Using comparable sales, income and/or cost data, TCAD appraisers apply generally accepted appraisal techniques to derive a value for your property.
Yes, someone has reviewed your property, but it may not have been this year.
The house is measured, classified, and depreciated due to its condition and age. It is valued based on the sales of similar properties.
A rendition is a statement, listing taxable property, and the name and address of the owner. The statement should also contain the owner’s estimate of the property’s value. The deadline for filing a rendition is on or before April 1st. Be sure to identify your property and attach any documentation that you may have such as closing statements, appraisals or sales of similar properties in your neighborhood.
Fair market value means the price at which a property would transfer for cash or its equivalent under prevailing market conditions if: Exposed for sale in the open market with a reasonable time for the seller to find a purchaser. Both the seller and the purchaser know all of the uses and purposes to which the property is adapted and for which it is capable of being used and of the enforceable restrictions on its use. Both the seller and the purchaser seek to maximize their gains and neither is in a position to take advantage of the exigencies of the other.
In order to produce accurate appraisals on all property within Travis County, we must visit them periodically to ensure that the data used in making the appraisal is still correct. For instance, the appraisal district could have received a copy of a building permit indicating that a room was being added and an appraiser may inspect the property to ensure the property characteristics are correct.
It can take up to 90 days to process a homestead exemption application. A property owner can always check the status of their application using our online portal or the property search function on our website.
BUSINESS PERSONAL PROPERTY
Texas Tax Code §25.025 permits certain persons to request that the appraisal district restrict from public access any information in the appraisal district records required by §25.02 that could be used to identify their home addresses.
The State Comptroller of Public Accounts prescribes the form on which these confidentiality requests may be made. Copies of the form 50-284 are available in our form library.
No. If you were in business January 1 you owe taxes for the year.
Renditions must be filed by both owners of tangible personal property that is used for the production of income and owners of tangible personal property on which an exemption has been cancelled or denied.
Business owners are required by State law to render business personal property that is used in a business or used to produce income. This property includes furniture and fixtures, equipment, machinery, computers, inventory held for sale or rental, raw materials, finished goods, and work in progress. You are not required to render intangible personal property (property that can be owned but does not have a physical form) such as cash, accounts receivable, goodwill, application computer software, and similar items. If your organization has previously qualified for an exemption that applies to personal property, for example, a religious or charitable organization exemption, you are not required to render the exempt property.
The last day to file your rendition is April 15th. If April 15th falls on a weekend, the rendition deadline is the next business day.
Yes. Attach these records to the rendition, sign and date it and then return it to our office. Include asset listings with the date of acquisition and original cost. All assets owned by the business must be rendered.
Yes. Information contained in a rendition cannot be disclosed to third parties except in very limited circumstances. In addition, the Texas Property Tax Code specifically provides that any estimate of value you provide is not admissible in proceedings other than a protest to the Appraisal Review Board (ARB) or court proceedings related to penalties for failure to render. The final value we place on your property is public information, but your rendition is not.
To determine original cost, refer to your accounting records, such as original journal entries and account ledgers. Use original purchase documents, such as invoices or purchase orders to determine the original cost of the asset. Add all costs attributed to getting the asset functioning, such as freight and set-up cost.
The law provides for an extension of time to file a rendition. In order to receive the extension, you must submit the request to the Travis Central Appraisal District in writing or by email before the April 15th rendition filing deadline. With the receipt of a timely extension request, the rendition filing deadline will be extended to May 15th.
Yes, the sales price includes the sales tax. The sales price of heavy equipment is defined in Section 23.1241(a)(7), Tax Code, as “total amount of money paid or to be paid to a dealer for the purchase of an item of heavy equipment” or “for a lease or rental with an option to purchase, the total amount of the lease or rental payments plus any final consideration, excluding interest.” The sales price includes the sales tax since it is part of the “money paid or to be paid to a dealer” for the purchase of the heavy equipment.
Yes, interest payment can be deducted. Section 23.1241(a)(7) states that the sales price is the “total amount of the lease or rental payments plus any final consideration, excluding interest.” For purposes of the annual declaration used to determine the property tax on the market value of a dealer’s inventory, Section 23.1241(b-1) provides that the sales price of an item of heavy equipment that is sold during the preceding year is considered to be the sum of the sales price for the item plus the total lease and rental payments received for the item in the preceding tax year.
Section 23.1241(a)(1) defines “dealer” as a “person engaged in the business in this state of selling, leasing, or renting heavy equipment.” Note: An appraisal district can check to see if the person has a Texas sales tax permit. A dealer engaged in business in Texas that sells or leases heavy equipment must be permitted to collect state and local sales tax since these are taxable transactions for sales tax purposes.
It depends on how the transaction is written. If the cost of warranties is set up as a separate transaction, then it is not part of the sales price of the heavy equipment. If, however, the cost of warranty is part of the single transaction in the purchase of the heavy equipment, then that cost is included as part of the sales price since it is part of the “money paid or to be paid to a dealer” for the purchase of the heavy equipment.
Yes, a heavy equipment dealer is required to render all tangible personal property used for the production of income, as required by Section 22.01, Tax Code. See also Section 23.1241(d) that addresses personal property held by a dealer and a dealer who sells predominately to other dealers. The more difficult question here is not whether they are required to render, but whether they are required to render the inventory that is otherwise appraised under Section 23.1241. It seems that chief appraisers have not been requiring those dealers to render their inventory, but have been considering the declaration they are required to file to meet the rendition requirement. Nonetheless, there is nothing specific in the Tax Code which exempts inventory owners from the rendition requirements.
No, excess funds are carried over to the next tax year. Section 23.1242(j) provides that no later than February 15, the tax collector “shall distribute to each appropriate taxing unit … all funds collected under authority of this section and held in escrow ….” In other words, funds deposited during the calendar year are used to pay the heavy equipment dealer’s tax bill on the dealer’s inventory; the tax collector distributes the deposited funds to the taxing units on or before January 31 of the following year and then any remaining in the account by February 15. No funds are carried forward to pay the next year’s tax bill. Current law allows a heavy equipment dealer to apply for a refund of prepaid taxes on a sale that is a fleet transaction (sale of five or more items of heavy equipment in one calendar year). This is the only provision for returning money in an escrow account to a heavy equipment dealer.
If the dealer is selling the used equipment to the auction company and sells five or more items in one calendar year, then the dealer reports those sales as “fleet transactions.” The auction company reports its sales as a dealer selling heavy equipment. In some cases, however, an auction company is not taking ownership of the heavy equipment but is handling the sales transaction for the dealer. So, the final answer will depend on the arrangements between the dealer and the auction company.
No, these exclusions all deal with sales of heavy equipment; therefore, they do not apply to leases and rentals. Please note that the definition of “subsequent sale” includes: “The term does not include a rental or lease with an unexercised purchase option or without a purchase option.” Leased or rented equipment in which the lessee/renter has exercised a purchase option changes that leased/rented equipment to a sale.
Section 23.1241(a)(6) defines “heavy equipment” as “any item of equipment that is self-propelled, self-powered, or pull-type equipment, including farm equipment or a diesel engine, that weighs at least, 500 pounds and is intended to be used for agricultural, construction, industrial, maritime, mining, or forestry uses.” It does not include a motor vehicle required to be titled or registered.
Yes, the heavy equipment and attachments are sold or rented as one transaction with a total sales price. If a dealer sells an attachment as a separate transaction and that attachment does not meet the definition of heavy equipment, then it is not part of the dealer’s heavy equipment inventory. The part may be part of the dealer’s other personal property inventory. Some dealers have parts departments that the dealer renders and the appraisal district appraises as regular inventory under Tax Code Section 23.12.
Changes to Section 23.1241(b) include this new sentence: “The owner of the equipment shall state the amount of the unit property tax assigned as a separate line item on an invoice.” The paragraph in which this new sentence is found addresses both sales and lease/rental transactions. This line item should appear on all invoices.
Section 23.1242(g) addresses a dealer who owes no heavy equipment inventory tax for the current year because the dealer was not in business on January 1. The dealer files the monthly statements each month that the dealer is in business. Section 23.1242(g)(2) states that the dealer may not assign a unit property tax to an item of heavy equipment sold by the dealer or remit money with the statement. It appears that the Legislature failed to correct the language in this subsection to reflect changes to include leases or rentals. An exception is Section 23.1242(k) that addresses a person who acquires another dealer’s business and has a contract to pay the selling dealer’s inventory taxes.
LAND AND AGRICULTURE VALUATIONS
An Agriculture Exemption is not an exemption, but rather a special valuation. If a portion or all of a property is deemed eligible to receive an Agricultural Valuation, that property will receive a production value along with its market value.
Agricultural use includes but is not limited to the following activities: cultivating the soil, producing crops for human food, animal feed, or planting seed for the production of fibers; floriculture, viticulture, and horticulture; raising or keeping livestock; raising or keeping exotic animals for the production of human food or of fiber, leather, pelts, or other tangible products having a commercial value; planting cover crops or leaving land idle for the purposes of participating in a governmental program, provided the land is not used for residential, recreational, or a purpose inconsistent with agricultural use; and planting of cover crops or leaving land idle in conjunction with normal crop or livestock rotation procedure, and raising or keeping bees for pollination or for the production of human food or other tangible products having a commercial value. Please review the TCAD Guidelines for the Appraisal of Open-Space Land for additional information.
The minimum requirement for grazing stock is 4 animal units. A grazing livestock animal unit equals 1 mature cow, 2 five-hundred pound calves, 6 sheep, 7 goats, or 1 mature horse. If you only had cows, you would need a total of 4 mature ones. If you only had goats, you would need twenty-eight. A combination such as 2 cows and 12 sheep would be four animal units. Another example is 1 cow, 2 calves, 6 sheep, and 7 goats, which would be equal to the required number of 4 animal units. Please review the TCAD Guidelines for the Appraisal of Open-Space Land for additional information.
No, the owner will not receive an Ag Rollback Tax if he or she intends to homestead that property (up to 20 acres) and maintains that homestead for 3 years.
The tax savings that a property receives depends on the current Market Value of the property and what type of Ag Valuation you are requesting. The agricultural values are based on a typical income minus typical expenses using a cash lease method.
Cropland and pastureland values are based on a five year average of typical income minus typical expenses using a cash lease method. Please review the TCAD Guidelines for the Appraisal of Open-Space Land for additional information.
The number of acres needed depends on the agricultural activity of the property. For example, the bee keeping requirement is a minimum of 5 acres and cannot exceed 20 acres. Five acres may be sufficient for intensive farming uses. Travis County has a minimum requirement of 4 animals units for grazing land which would generally require a minimum of 12 acres on the East side of IH 35 and 20 acres on the West side. This guideline of 12 acres on the East side of IH 35 and 20 acres on the West side also applies to land used for dryland and irrigated farming and hay production. Please review the TCAD Guidelines for the Appraisal of Open-Space Land for additional information.
An Ag Rollback Tax is an additional tax that is imposed when a property owner ceases to use the property for qualified agricultural purposes and changes the use to any other purpose excluding building a house for a personal homestead. The Rollback Tax recoups the tax the owner would have paid if his or her land had been taxed at market value for the years covered in the rollback. Please review the TCAD Agricultural Guidelines or the Texas Comptroller – Appraisal of Agricultural Land in our Forms database for additional information.
In order to receive a special valuation for Wildlife Management use, the property must currently be qualified and appraised under an Ag valuation. A new Application for 1-d-1 (Open Space) Agricultural Use Appraisal must be timely filed along with a 5 year TPWD -Wildlife Management Plan (PWD 885-W7000) provided by the Texas Parks and Wildlife Department. In addition, a property receiving Ag Valuation in Wildlife Management Use must provide an annual report that documents the activities performed each year. Please review the TCAD Agricultural Guidelines in our Forms database for additional information.
TCAD accepts timely applications for agriculture appraisal valuation from January 1 to April 30 of each tax year. Late applications can be received until the appraisal roll is certified (typically in mid-July), but a 10% penalty is added. Once the Appraisal Review Board approves the appraisal roll, an application for agricultural appraisal is unable to be accepted for that year.
Wildlife Management Annual Reports are due by the last day of February of the current tax year, detailing activities performed the prior year.
No. A new Application for 1-d-1 (Open Space) Agricultural Use Appraisal (Form 50-129) (For wildlife management use, also include a TPWD -Wildlife Management Plan (PWD 885-W7000)) must be timely submitted if seeking an agricultural use valuation. Please refer to the TCAD Agricultural Guidelines in our Forms Database.
TCAD responds to agricultural appraisal applications within 90 days, however if additional information has been requested, it may extend the review period.
CIRCUIT BREAKER LIMITATIONS
Your property may not have a limitation applied if it is valued above $5 million, you have not owned the property for at least one full calendar year, you are currently benefiting from a homestead exemption limitation, or you removed exemptions you previously had on the property. Your property’s market value must increase to current market value before a limitation can be applied.
Real property valued at $5 million or less will benefit from a 20 percent limitation on the net appraised value used to calculate property taxes. Each property that qualifies will have a net appraised value that will be the lesser amount of:
- last year’s net appraised value PLUS 20 percent of that value PLUS the market value of all new improvements on the property OR
- this year’s market value
You are not required to submit an application to receive a circuit breaker limitation. The appraisal district will automatically apply and calculate these benefits every year.
Net appraised value calculations are not performed during the hearing process. If your property’s net appraised value needs to be adjusted as a result of your protest, the appraisal district will update that value within 2 weeks of your hearing. You can keep track of these updates using our website’s property search feature.