Property tax exemption may seem like a fairy tale for most homeowners. However, there are some ways that you can qualify for a property tax exemption. Property owners in Texas must apply for their exemptions, so nothing is guaranteed. However, prior to filling out an application or meeting with a property tax consultant, it is a good idea to have an understanding of how you could avoid paying this bill each year.
1. You Live on a Homestead
By definition a homestead is a person’s residence that serves as a home, has land and outbuildings on the property. Sprawling farms may immediately come to mind, but in the state of Texas a homestead is property that produces agriculture or involves small-scale production of clothing and textiles for use or sale.
In Texas, we have homestead tax exemption for those who qualify. This means that if you reside on a homestead you could possibly be exempt from paying property taxes. Remember, a homestead is a primary residence, so rentals that may use the property in similar ways will not be eligible.
2. Age or Disability
Your age and quality of life can also have an impact on your property taxes. If you are age 65 or older it is a good idea to seek out as many tax exemptions as possible. Property tax exemption really comes into play if you are a senior with a lower income flow coming into your bank account.
Also, if you have a disability or are a disabled veteran, there are ways that you can exempt some taxes and save money. Improvements made on a home to help accommodate for a specific disability are usually eligible for tax deductions.
Keep in mind that the state does not automatically apply exemptions to those that need them. This means that if you know that your parent or elderly loved one may run the risk of falling behind on their property taxes, now is the time to make a move. Work with your tax consultant and county assessor to get the application process started for you or your loved one. Don’t run the risk of foreclosure or lien.
3. Energy and Other Household Renovations
Sometimes just wanting your home to look nicer or be energy efficient qualifies for an exemption. Real estate properties that have currently undergone extensive renovations can potentially gain some exemptions or deduction possibilities.
Also, green improvements like the installation of solar panels on the property can help save on property tax money as well as your energy bill. After a renovation or new home development in Dallas county, it is always a good idea to meet with your assessor and find out how these changes could impact your property taxes within the next year.
Trust a Property Tax Consultant to Help You Determine Your Status
Don’t simply assume that you are tax exempt and fail to pay your property taxes. Your status must be determined by a professional and the assessor of your local county. Contact the Hegwood Group today with any questions you may have about your tax exemption status.