Frequently Asked Questions: Exemptions
Q: What is a general homestead exemption?
A: The general homestead exemption is provided by state law for owner-occupied residential properties. The exemption removes a portion of your value from taxation providing a lower tax amount for the homestead property.
Q: How do I qualify for this exemption?
A: In order to qualify for this exemption you must have owned and occupied the property as of January 1st of that tax year. This property must also be your principal residence and you may not claim another homestead on another piece of property.
Q: When and where do I apply for my homestead exemption?
A: You may apply at the Bosque Central Appraisal District. Please fill out the Homestead form.
We will also need:
- A copy of the applicant’s Texas drivers’ license or Texas identification certificate. The address must match the primary residence.
- For active military requires a copy of driver’s license (address does not have to match), a copy of military identification, and a copy of current utility bill.
You may file for late HS exemption up to one year after the date the taxes become delinquent. You may also mail the above information to the Bosque Central Appraisal District, PO Box 393, Meridian, TX 76665. Contact our office for more information please call [254) 435-2304 or email us at feedback@bosquecad.com.
Q: Do I need to reapply every year for the exemption?
A: No. You do not have to reapply unless the chief appraiser requests a new application or you move to a new residence.
Q: Am I eligible for additional exemptions when I turn 65 years old?
A: If you are age 65 or older, your residence homestead will qualify for additional exemptions deductions and you will receive a tax ceiling for that home on your school taxes. You may file for the over-65 exemption up to one year from the date you turned 65.
Q: I am a surviving spouse. Am I eligible for any exemption benefits?
A: If a homeowner who has been receiving the tax ceiling on school taxes dies, the ceiling transfers to the surviving spouse, if the survivor is 55 or older and has ownership in the home. The survivor must apply to the appraisal district for the tax ceiling to transfer.
Q: Can I claim a homestead on a mobile home if I do not own the land?
A: Yes. You will need to furnish a copy of your title to the mobile home or a verified copy of your purchase contract.
Q: How many acres can I claim as my homestead?
A: State law allows you to claim that 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.
Q: I am a disabled veteran. Am I entitled to any property tax deductions?
A: You may qualify for a property tax exemption if you are either (1) a veteran who was disabled while serving with the U.S. armed forces or (2) the surviving spouse or child resident and must provide documentation from the Veteran’s Administration reflecting the percentage of your service-connected disability. Your disability rating must be at least 10 percent.
Q: I am a homeowner with disabilities. May I receive any property tax benefits?
A: A person with a disability may get exemptions if (1) you can’t engage in gainful work because of a physical or mental disability or (2) you are 55 years old and blind and can’t engage in your previous work because of your blindness. If you receive disability benefits under the Federal Old Age, Survivors, and Disability Insurance Program through the Social Security Administration you should qualify. Disability benefits from any other program do not automatically qualify.
Q: Are there other exemptions?
A: Yes. There are exemptions for Freeport, Pollution Control, Abatements, Low Income Housing, Charitable Organizations, and more. For all exemption forms, please go to this page. If you need help applying for an exemption or need help filling out an exemption form, please call [254) 435-2304 or email us at feedback@bosquecad.com.
Q: What is the Homestead Cap?
A: An additional benefit of the general homestead exemption, especially in an appreciating housing market, is the homestead cap, or limitation on increases in appraised value. The cap applies to your homestead beginning in the second year you have a homestead exemption. The cap law provides that if you qualify, the value on which your taxes will be calculated (called your appraised value) cannot exceed the lesser of: this year’s market value or last year’s appraised value plus 10% plus the value of any new improvements made during the preceding year. If homes are appreciating at more than 10% per year, the cap can provide substantial tax savings.
Texas Comptroller’s WebsiteThe appraised value for a homeowner who qualifies his or her homestead for exemptions in the preceding and current year may not increase more than 10 percent per year.
Tax Code Section 23.23(a) sets a limit on the amount of annual increase to a residence homestead’s appraised value to not exceed the lesser of:
- the property’s market value; or
- the sum of:
- 10 percent of the property’s appraised value for the preceding year;
- the property’s appraised value the preceding year; and
- the market value of all new improvements to the property.
Tax Code Section 23.23(e) defines a new improvement as an improvement to a residence homestead made after the most recent appraisal that increases the property’s market value and was not included in its appraised value for the preceding tax year. It does not include repairs to or ordinary maintenance of an existing structure, the grounds or another property feature. Tax Code Section 23.23(f) states a replacement structure for one rendered uninhabitable or unusable by a casualty, wind or water damage is also not considered a new improvement.
The appraisal limitation only applies to a property granted a residence homestead exemption. The limitation takes effect on Jan. 1 of the tax year following the year the property owner qualifies for the homestead exemption. It expires on Jan. 1 of the tax year following the year the property owner no longer qualifies for the residence homestead exemption.
Q: Have you Inherited your home?
A: Learn How to Lower Your Property Taxes by Qualifying for the Full Benefits of the Homestead Exemption in Texas. Click the link below for more information.
