tdiu Texas Homestead Exemptions For 100% Now Law

[Teac]

Sent: Monday, June 22, 2009 11:50 AM

Cc:

Subject: Alert: Homestead Exemption of 100 Percent Disabled Veterans

Importance: High

Alert to Appraisal Districts and County Tax Assessors

Total Exemption of Homesteads of 100 Percent Disabled Veterans

House Bill 3613, which contains a provision requiring an exemption of the total appraised value of homesteads of Texas veterans receiving 100 percent disability compensation from the United States Department of Veterans Affairs, is now state law. This new exemption is effective for the 2009 tax year, and you should ensure that it is reflected on the 2009 appraisal roll. Eligible veterans with mortgages may need your immediate confirmation that their homesteads are totally exempt so they can notify their mortgage companies and reduce their escrow payments. Appraisal districts should already have a record of the disability rating of each veteran who owns a homestead if they qualify for the partial exemption allowed by law. Attached please find a temporary model form for use in 2009 for the disabled veteran's homestead exemption. This form is located on our web site at http://www.window.state.tx.us/taxinfo/taxforms/vetexempt.pdf.

The total homestead exemption for 100 percent disabled veterans is codified as the new Property Tax Code Section 11.131. House Bill 3613 also includes provisions that conform the Tax Code bracket points for the disabled veterans' partial exemption to the bracket points in the Texas Constitution and prohibit consideration of highest and best use in appraising homesteads. Please call (800) 252-9121 if you have questions about any of these new provisions.

Property Tax Assistance Division

Attachment

Totally Disabled Veteran Homestead Property Tax Exemption

Originally filed as SB 469 (Sen. John Carona)/HB 742 (Rep. Kino Flores)

Passed as part of HB 3613

• This exemption applies to a veteran:

o with a service-connected disability,

o who receives compensation from the U.S. Department of Veterans Affairs at the 100% level due

to either:

§ a 100% disability rating OR

§ individual unemployability.

• The TOTAL VALUE of an applicable disabled veteran's residence homestead (principal

residence) is EXEMPT from any calculation of property taxation.

o Regardless of the number of taxing units (school districts, utility districts, hospital districts) in

which a veteran's homestead may be, the property's value is virtually worth $0 for the

calculation of a property tax bill.

§ EXAMPLE: If a school district charges $1.00 per $100 of a home's value, your home

costs $100,000, AND you are a totally disabled veteran, then the appraisal district

reports your home's value as $0. One dollar and fifty cents times zero is zero. You

would owe $0 in property taxes to your school district, and this holds true for every other

taxing district your property is in.

• The effective tax year for this exemption is 2009.

o Despite the bill being originally filed with an effective tax year that was essentially 2010, the bill

was amended to apply this exemption to taxes calculated in "the tax year beginning on or after

January 1st, 2009."

o The effective tax year should not be confused with the effective date of the bill.

§ As amended into HB 3613, the language of SB 469 says that it takes effect either

September 1st or immediately if it gets 2/3 vote from both Houses.

• HB 3613 received more than the necessary amount of votes in the House and

Senate, so it takes effect immediately upon the Governor's signature.

• However, even if it had gone into effect on September 1st, the language still

specifies that it applies to the 2009 tax year.

• Applying for the totally disabled veteran property tax should be much easier with a new

certification letter created by the U.S. Department of Veterans Affairs in anticipation of this bill

passing the State Legislature.

o The new certification letter should now address

§ the specific percentage rating of a veteran's disability,

§ the veteran's individually unemployable status, and

§ whether the disability was service-connected.

o Veterans should contact their County Appraisal District to:

§ obtain an application for applying for a disabled veteran property tax exemption (also

available online through the Comptroller's website) AND

§ ensure that a copy of his new letter of certification from the VA was received with that

application.

[LarryJ]

Well, I guess I just received a $5,000 bonus. Nice.

[Pete53]

Larry and Teac:

Its fantastic its like getting a COLA as far as I can tell. As a matter of record Sen John Carona is my State Senator and I have in my own himble way encouraged him to fight for this Bill.

I wonder who got the bill amended I would like to thank all that helped do this.

I guess I don't have to go down to the Dallas Appraisal District and beg June 30th.

There was an article in Texas Business News that said homes in Dallas area were headed to 1999 levels.

[Teac]

Yea guys I just put $300.00 a month in my pocket.... I just bought a new van three months ago, but a new pickup is looking mighty nice now......Of course this was late in coming .. Oklahoma approved this 5 years ago, other states have had total exemption for 100% disabled veterans for years.. SC, Georgia, florida come to mind,......

anyway thanks Texas... I wil enjoy

[Teac]

Wooo nelly !!!!!!wait a minute guys .. this did not change the old homestead exemption law... it is in addition to the old law.. that means that those rated 100% will now get two exemptions. One for $12,000 toward any taxed property and one toward your primary resident. It seems the old exemption law did not have to be used toward your homestead but could be used for exempting a car, boat or any other property The new law is a seperate law, leaving the old law intact.. read the attached informaton to get a better understanding of what has actually happened.

http://www.taad.org/The%20APPRISER%20May-June%202009.pdf

Edited June 23, 2009 by Teac

[Pete53]

According to the news letter you posted enrollment is not automatic and the exemption has to be applied for.There is a temporary form on your first post so I printed it and will submit it soon.

I still am pinching my self.

[deltaj]

Yea guys I just put $300.00 a month in my pocket.... I just bought a new van three months ago, but a new pickup is looking mighty nice now......Of course this was late in coming .. Oklahoma approved this 5 years ago, other states have had total exemption for 100% disabled veterans for years.. SC, Georgia, florida come to mind,......

anyway thanks Texas... I wil enjoy

Montana also has 100% exemption for 100% vets and widows of 100% vets if taxable income is less than about $32,000 a year. Information on this is available online by searching the Montana Code Annotated.