PROPERTY TAX BENEFITS AND INFORMATION

Homestead Exemptions

One of the easiest ways a homeowner can lower his or her property tax bill is to file a homestead exemption. A homestead is generally the house and land used as the owner’s principal residence on Jan. 1 of the tax year. A person who acquires property after Jan. 1 may receive the residence homestead exemption for the applicable portion of that tax year immediately on qualification for the exemption if the preceding owner did not receive the same exemption for that tax year.

Homestead exemptions reduce the appraised value of your home and, as a result, lower your property taxes. To apply for an exemption on your residence homestead, contact the Henderson County Appraisal District.
Available homestead exemptions include:

• School taxes: All homeowners may receive a $100,000 homestead exemption for school taxes.

• County taxes: If a county collects a special tax for farm-to-market roads or flood control, a homeowner may receive a $3,000 homestead exemption for this tax.

• Age and disability exemptions: Individuals 65 or older or disabled as defined by law may qualify for a $10,000 homestead exemption for school taxes, in addition to the $100,000 exemption available to all homeowners. Also, any taxing unit may offer a local optional exemption of at least $3,000 for taxpayers age 65 or older and/or disabled. Older or disabled homeowners do not need to own their homes on Jan. 1 to qualify for the $10,000 homestead exemption. They qualify as soon as they turn age 65 or become disabled.

• Taxing units may offer a local option exemption based on a percentage of a home’s appraised value. Any taxing unit can exempt up to 20 percent of the value of each qualified homestead. No matter what percentage of value the taxing unit adopts, the dollar value of the exemption must be at least $5,000.

Disabled Veterans Exemption

• Partial exemption for disabled veterans: Texas law provides partial exemptions for any property owned by disabled veterans, surviving spouses and surviving children of deceased disabled veterans. This includes homesteads donated to disabled veterans by charitable organizations at no cost or not more than 50 percent of the good faith estimate of the homestead’s market value to the disabled veterans and their surviving spouses. The percentage of service-connected disability determines the exemption amount.

• 100 Percent Residence Homestead Exemption for Disabled Veterans: A disabled veteran awarded 100 percent disability compensation due to a service- connected disability and a rating of 100 percent disabled or of individual unemployability from the United States Department of Veterans Affairs is entitled to an exemption from taxation of the total appraised value of the veteran’s residence homestead. Surviving spouses of veterans who qualified for this exemption or who would have qualified for this exemption if it had been in effect at the time of the veteran’s death are also eligible with certain restrictions. The residence homestead application must be filed if this exemption is claimed.

• Surviving Spouses of Members of the U.S. Armed Services Killed in the Lined of Duty: The surviving spouse of a member of the U.S. armed services who is killed or fatally injured in the line of duty is allowed a 100 percent property tax exemption on his or her residence homestead if the surviving spouse has not remarried since the death of the armed services member.

• Surviving Spouses of First Responders Killed in the Line of Duty: The eligible surviving spouse of a first responder killed in the line of duty is allowed a 100 percent property tax exemption on his or her residence homestead if the surviving spouse has not remarried since the death of the first responder.

Non-profits and Special Business Exemptions

Non-profit organizations that qualify under Texas law to receive property tax exemptions must apply to the Henderson County Appraisal District by April 30.

The April 30 deadline also applies to child-care facilities; medical or biomedical property; businesses that receive tax abatements granted by taxing units; ship inventory out of Texas that may be eligible for the freeport exemption; store certain goods in transit in warehouses that are moved within 175 days; construct, install or acquire pollution control property; own and operate energy storage systems; convert landfill-generated gas; or store offshore drilling equipment while not in use. If the last day for the performance of an act is a Saturday, Sunday or legal state or national holiday, the act is timely if performed on the next regular business day.

The non-profit organizations that are eligible for property tax exemptions include but are not limited to: certain charitable organizations, youth development organizations, religious organizations, non-profit private schools, cemeteries, and veterans’ organizations. If a non-profit organization meets property tax exemption qualifications, the exemption can be approved immediately after the organization buys or acquires new property during the year.

Non-profit organizations must reapply if the property changes owners; if their qualifications for exemption change; or if they acquire new property. In most cases, after non-profit organizations are granted a property tax exemption, they do not have to reapply annually unless the chief appraiser asks them to file again.

Agricultural-Use Special Appraisal

Texas farmers and ranchers can be granted property tax relief on their land. They may apply to the Henderson County Appraisal District for agricultural productivity appraisal and for a lower appraisal of their land based on how much they produce, versus what their land would sell for on the open market.

The Texas Constitution authorizes two types of agricultural productivity appraisals, 1-d- 1 and 1-d, named after the section in which they were authorized. For 1-d-1 appraisal, property owners must use the land for agriculture or timber and the land’s use must meet the degree of intensity generally accepted in the area. Owners must also show that the land was used for this purpose at least five of the preceding seven years.

1-d-1 appraisal does not restrict ownership to individuals and does not require agriculture to be the owner’s primary business. Most landowners apply for the 1-d-1 appraisal.

Under 1-d appraisal, the land must have been used for this purpose at least three years and the owner must be an individual versus a corporation, partnership, agency, or organization. The land must also be the owner’s primary source of income.

Penalties in the form of a rollback tax, or the difference between the taxes paid under productivity appraisal and the taxes that would have been paid if the land had been put on the tax roll at market value, will be imposed if qualified land is taken out of agriculture or timber production.

A rollback tax occurs when a landowner switches the land’s use to non-agricultural. These rollback taxes are based on the three tax years preceding the year of the change.

Texas law allows farmers and ranchers to use land for wildlife management and still receive the special appraisal, but the land must be qualified for agriculture use in the preceding year. Land under wildlife management must also meet acreage size requirements and special use qualifications.

The deadline to apply for productivity appraisal is April 30. If the last day for the performance of an act is a Saturday, Sunday or legal state or national holiday, the act is timely if performed on the next regular business day. Owners of land qualified as 1-d must file a new application every year. Owners of land qualified as 1-d-1 need not file again in later years unless the chief appraiser requests a new application.

Renditions

If you own tangible personal property that is used to produce income, you must file a rendition with the Henderson County Appraisal District by April 15.

A rendition is a report that lists all the taxable property you owned or controlled on Jan. 1 of this year. Property includes inventory and equipment used by a business. Owners do not have to render exempt property, such as church property or an agriculture producer’s equipment used for farming.

You can also file a report of decreased value to notify the appraisal district of significant depreciation of your property.

For most property types, renditions must be filed after Jan. 1 and no later than April 15. Different deadlines apply in certain appraisal districts. A property owner may apply, in writing, for a mandatory extension to May 15.

A 10 percent to 50 percent penalty may be imposed if a rendition is filed late, incomplete, or not at all. Property owners who need more time to file their renditions may file a written request with the chief appraiser on or before April 15 to receive an automatic extension to May 15 or the next business day.
The chief appraiser may also grant an additional 15 days after the postponed deadline, if necessary.

Tax Deferral

Texans may postpone paying current and delinquent property taxes on their homes by signing a tax deferral affidavit at the Henderson County Appraisal District office if they are:
• age 65 or older;
• disabled as defined by law
• qualified disabled veterans, their unmarried surviving spouses, or their unmarried children under age 18, if no surviving spouse; or
• unmarried surviving spouses of U.S. armed service members killed on active duty and their unmarried children under age 18.

Once the affidavit is on file, taxes are deferred — but not cancelled — as long as the owner continues to own and live in the home. Taxes accumulate with 5 percent interest per year. The law extends the tax deferral to the surviving spouse of the person who deferred taxes on the homestead if the surviving spouse was at least 55 years old when the deceased spouse died.

A filed tax deferral affidavit keeps homeowners from losing their homesteads because of delinquent property taxes. A pending sale to foreclose on the homestead’s tax lien will also cease as a result of filing a tax deferral affidavit. In addition, no taxing unit can start or continue a lawsuit to collect delinquent taxes once an affidavit is filed. There are no penalties on delinquent taxes during the deferral period; however, a tax deferral does not cancel penalties that were already due.

All deferred taxes and interest become due when the homeowner or surviving spouse no longer own and live in the home. If the tax debt remains unpaid at that time, penalties may be imposed, and taxing units may take legal action to collect the past due amount.

Deferral of taxes on appreciating homesteads: Texas homeowners may postpone paying the currently delinquent property taxes due on the appreciating value of their homes by taking advantage of a payment option called “residence homestead tax deferral” and filing a tax deferral affidavit at the Henderson County Appraisal District.

This tax relief allows homeowners to pay the property taxes on 105 percent of the preceding year’s appraised value of their homestead, plus the taxes on any new improvements to the homestead. The remaining taxes are postponed — but not cancelled — with interest accruing at 8 percent per year.

Once the homeowner files the tax deferral affidavit with the appraisal district, no taxing unit can start or continue a lawsuit for the deferred taxes as long as that person owns and lives in the home. When the homeowner no longer owns and lives in the home, the deferred taxes and interest become due. If the taxes are not paid, taxing units can then sue to collect the deferred taxes and interest. Additional penalties are possible.

Electronic Communication

Chief appraisers and ARBs may communicate electronically through email or other media with property owners or their designated representatives. Written agreements are required for notices and other documents to be delivered electronically instead of mailing.

How does it work? Certain guidelines must be followed for this local option communication:
• Written agreements with the county appraisal district must be entered first, ensuring what electronic means of delivery are acceptable. If you are interested in receiving communications in electronic format, you should contact your local appraisal district.

• Public notice regarding the availability of agreement forms authorizing electronic communications may be published in a newspaper of general circulation in the appraisal district on or before Feb. 1 each year, or agreement forms may be delivered on or before Feb. 1 each year to property owners shown on the certified appraisal roll for the preceding tax year.

• The chief appraiser may determine the medium, format, content and method to be used for electronic communications other than notices required by Tax Code Section 25.19 which are prescribed by rule.

• A decision by the chief appraiser not to enter into agreements may not be the subject of an ARB protest, a lawsuit or a complaint to the Texas Department of Licensing and Regulation.

Protesting Property Appraisal Values

Property owners who disagree with the appraisal district’s appraisal of their property for local taxes or for any other action that adversely affects them may protest their property value to the Appraisal Review Board (ARB).

Informal Meetings

Property owners can request an informal meeting with the appraisal district staff to try to resolve their disputes prior to attending ARB hearings. The Henderson County Appraisal District holds informal meetings in-person annually in May from 8:00 AM to 4:00 PM. Please come to our office and speak with your appraiser. Bring any supporting documents such as, settlement statements, repairs for estimates, fee appraisals, and photos.

Website Provides Information on Property Tax Rates

Property tax information for Henderson County is available at https://henderson.countytaxrates.com/tax. This is the official website on which property owners can easily access information regarding property taxes, including the amount of taxes that each entity that taxes a property will impose if the entity adopts its proposed tax rate. Property owners may also visit https://www.Texas.gov/PropertyTaxes to find a link to their local property tax website. Taxing units regularly update this website during August and September as local elected officials propose and adopt the property tax rates that will determine how much you pay in property taxes. The website allows property owners to provide feedback on the tax rate process and provides the following property-specific information for each taxing unit authorized to levy a tax on the property, including:
• property values;
• proposed tax rates;
• an estimate of property taxes that would be imposed under the proposed rates;
• dates and locations of public hearings on the tax rates; and
• other useful information on taxing unit budgets; revenue and rate calculations. Continue to check the website for updates throughout the tax rate adoption process in August and September.

Contact the Henderson County Appraisal District

We are here to serve you. If you have any questions or would like a copy of any of the exemptions, special appraisal, rendition, or tax deferral forms, please visit our website at www.henderson-cad.org . On our website you will see an icon that reads “ONLINE FORMS,” here you have the option to create an account and fill out your form electronically. You may print a form directly from the website and email it to us at hendersoncad@hcadtx.org . Send it via fax to (903) 675-4223. Mail it in via USPS First Class Mail to P.O. Box 430, Athens, TX 75751. Bring your form or application to our office located at 1751 Enterprise St. Athens, TX, 75751.

If you have any questions about our website or any of our online applications, call our office at
(903) 675-9296 or email us at hendersoncad@hcadtx.org . Information is also available on the Comptroller’s Property Tax Assistance Division’s website at comptroller.texas.gov/taxes/property-tax/.