Homestead Exemption Update

During the 88th regular session, the Texas Legislature passed Senate Bill (SB) 1801 that required appraisal districts to verify the eligibility of homeowners for the homestead exemption at least once every five years.

Previously, homeowners were only required to complete this process once, which remained valid until the property changed hands. However, the recent amendment mandates periodic assessments by appraisal districts to confirm ongoing eligibility for exemptions, including the homestead exemption.

While not all homeowners will be impacted, it is crucial to pay attention to any correspondence you receive from the appraisal district. Failure to furnish the necessary information for your homestead exemption upon request could result in substantial loss of savings and potentially drastic increases in property taxes.

Other recent Homestead Exemption updates include the November 2023 Tax legislation, which awarded substantial tax savings for Texas homeowners and small businesses.

Highlights of these recent legislative reforms includes:

1. Expanded Homestead Exemption: The homestead exemption for Texas homeowners increased to $100,000.

2. Protection for Senior Homeowners: A central objective of the new legislation is to safeguard senior homeowners from the risk of being priced out of their homes.

3. Enhanced Relief for Small Businesses: The legislation doubles the small business exemption for the Franchise Tax and introduces measures to shield these entities from excessive appraisal hikes. Furthermore, it imposes a 20% cap on appraisal increases for non-homestead properties valued under $5 million, fostering a more supportive economic climate for Texas's small businesses.

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