Q: Do I, as a homeowner, get a tax break from property taxes?

Q: What is a homestead?

Q: Do all homes qualify for homestead exemptions?

A: No, only a homeowner's principal residence qualifies. To qualify, a home must meet the definition of a residence homestead: The home's owner must be an individual (for example: not a corporation or other business entity) and use the home as his or her principal residence on January 1 of the tax year. If you are over-65, the January 1 ownership and residency are not required.

A: You must file an Application for Residential Homestead Exemption with the Webb County Appraisal District between January 1 and April 30 of the tax year. State law also provides for the filing of a late application. During the year, if you turn 65 or become disabled, you must apply for the 65 or older or disabled exemption no later than one year from the qualification date. A copy of a valid Texas State issued driver's license or ID is required. If the situs address of the home that you are applying for does not match the address on your driver's license or ID, an original current copy of three (3) utility bills (ex. light, gas, water, telephone and cable) from your current address must accompany the identification. The information requested above must be presented with your homestead application in order for your exemption to be processed. Once you receive the exemption, you do not need to reapply unless the chief appraiser sends you a new application. In that case, you must file the new application. If you should move or your qualifications end, you must inform the appraisal district in writing before the next May 1.

Q: What if I miss the deadline for filing for a homestead exemption?

A: You may file for a homestead exemption up to one year after the delinquency date -- usually February 1. If you are 65 or older or disabled, you must apply for the exemption no later than one year from your 65th birthday or one year after the delinquency date, whichever is later.

Q: May I continue to receive the residence homestead exemption on my home if I temporary move away?

A: If you temporarily move away from your home, you may continue to receive the exemption if you do not establish a principal residence elsewhere, you intend to return to the home, and you are away less than two years. You may continue to receive the exemption if you do not occupy the residence for more than two years only if you are in military service or live in a facility providing services related to health, infirmity or aging from the two-year period.

Q: If I own only 50 percent of the home I live in, do I qualify for the residence homestead exemption on the home?

A: Yes. However, if you qualify for a homestead exemption and are not the sole owner of the property to which the homestead exemption applies, the exemption you receive is based on the interest you own. For example, you own a 50 percent interest in a homestead and will receive one half, or $7,500, of a $15,000 homestead offered by a school district.

Q: What is a homestead tax ceiling?

A: It is a limit on the amount of taxes you must pay on your residence. If you qualify your home for a 65 and older or disabled person homestead exemption for school taxes, the school taxes on that home can't increase as long as you own and live in that home. The tax ceiling is the amount you pay in the year that you qualified for the 65 - and - older or disabled person exemption. The school taxes on your home may go below the ceiling but not above the amount of the ceiling. If you improve the home (other than normal repairs or maintenance), the tax ceiling may go higher for the new additions. For example, if you add on a garage or game room to the house, the tax ceiling will be adjusted to a higher level for the addition.

Q: Does the school tax ceiling transfer when a person who is age 65 or older or is disabled or is the surviving spouse (age 55 or older) of a person who was age 65 or older moves to another home?

A: A percentage of the school tax ceiling may be transferred.

The ceiling on the new home would be calculated to give you the same percentage of tax paid as the ceiling on the original home. For example, if you currently have a tax ceiling of $100, but would pay $400 without the ceiling, the percentage of tax paid is 25 percent. If you move to another home and the taxes on the new homestead would normally be $1,000 in the first year, the new tax ceiling would be $250, or 25 percent of $1,000.

To transfer the school tax ceiling, you may request a certificate from the chief appraiser in the last appraisal district in which you received the tax ceiling. You present the transfer certificate to the chief appraiser in the district where the new home is located, when you apply for homestead exemptions on the new home.

A: You are eligible for this exemption if you can't engage in gainful work because of a physical or mental disability or you are 55 years old and blind and can't engage in your previous work because of the blindness. To qualify, you must meet the Social Security definition for disabled. You qualify if you receive disability benefits under the federal Old Age, Survivors and Disability Insurance Program administered by the Social Security Administration. Disability benefits from any other program do not automatically qualify you. To prove your eligibility, you may need to provide the appraisal district with information on disability ratings from the civil service, retirement programs, or from insurance documents, military records, or a doctor's statement.

Q: Is the disabled veteran's exemption the same as the disabled person's exemption?

A: No. To receive a disabled veteran exemption, you must either be a veteran who was disabled while serving with the U.S. armed forces or the surviving spouse or child (under 18 years of age and unmarried) of a disabled veteran or a spouse/child of a member of the armed forces who was killed while on active duty.

 In order to qualify for a disabled person exemption, you can't engage in gainful work because of physical or mental disability or 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 administered by the Social Security Administration, you will qualify for the disabled person exemption.

Q: What is the amount of the disabled veteran's exemption?

A: The exemption amount that a qualified disabled veteran receives depends on the veteran's disability rating from the branch of the armed service:

The disabled veteran must be a Texas resident and must choose one property to receive the exemption for all property tax purposes.

Q: May I file for a disabled veteran's exemption after the deadline has passed?

A: Yes. The deadline for filing for a disabled veteran's exemption is between January 1 and April 30 of the tax year. However, you may file for a disabled veteran's exemption up to one year after the date the owner paid the taxes on the property or the date the taxes became delinquent, whichever is earlier. To file for a disabled veteran's exemption, you must complete the Application for Disabled Veteran's or Survivor's Exemptions form.

Q. I already have a homestead exemption. Do I need to apply for the new exemption?

A: Yes. The new exemption is not given automatically.

Q. I just qualified for the disabled veteran’s exemption. Why do I need to send you my documentation for the new exemption?

A: Qualifications for the new homestead exemption differ from those for the older exemption. In particular, you must show that you actually receive 100% disability compensation for a service-connected disability.

Q. When is the new homestead exemption effective?

Q. I bought my home after January 1, 2009. Will I get the exemption for part of 2009?

A: No. The exemption will take effect for the 2010 year if you didn’t own your home on January 1, 2009.

Q. My disability rating is actually 50%, but because I am over 65, I receive the maximum disability exemption. Do I qualify for the new homestead exemption?

A: No. You must be 100% disabled or have a rating of individual unemployability to qualify for the new exemption. You must also be receiving 100% disability compensation from the VA.

Q. If something happens to me, will the new exemption pass to my spouse or children?

A: No. Only the disabled veteran can claim the exemption.

Q. I owe delinquent taxes on my home for years before 2009. Will the new exemption affect those?

Q. I am in a hospital or nursing home. Can I still get the new exemption?

A: Yes, as long as you intend to return to the home if you are able.

Q My spouse and I own our home together. How is the exemption calculated?

A: If the home is community property, it is calculated as if you owned 100% of the home. If the home is not community property, the exemption is prorated in proportion to the value of your interest.

Q. I have a mortgage on the home. Can I still get the exemption?

Q. I don’t currently have a homestead exemption. Do I need to apply for the regular homestead exemption in addition to this one?

A: You should also apply for the regular homestead exemption. That will ensure that you receive the maximum benefits of the regular exemption should your qualification for the new exemption change.

Q. I have recently turned 65. Should I apply for the over-65 homestead exemption in addition to the new exemption?

A: Yes, for the same reasons given above.

Q. How much of my home’s value will the new exemption exempt?

A: Your home will be totally exempt from property taxes.

Q. I meet all of the qualifications for the new exemption. I currently apply the $12,000 regular disabled veteran’s exemption to my home. When I get the new disability homestead exemption, what happens to the other exemption?

A: The new exemption will exempt all of the value of your home. Consequently, the $12,000 disabled veteran’s exemption will have no effect. If you own other taxable property (such as a vacation home or business), you should file a new application with the appraisal district and designate the exemption as applying to the other property.

Q. Will I have to reapply every year for the new disability homestead exemption?

A: No. Once your exemption is granted, you will not have to reapply unless the chief appraiser requires you to do so in writing.

Q. I already have disability homestead exemption on my home. What is the difference between that one and this one?

A: The existing disability homestead exemption has different requirements and benefits. For that exemption, you must meet the Social Security Administration’s definition of disabled, which is not necessarily the same as that used by the VA or your branch of the military. The benefits are also different. Only school districts required to provide a disability homestead exemption, though many other taxing entities do. The new exemption will apply to all taxing units and will exempt the total value of your home.

Q. Can I apply the new exemption to my main home and get the general homestead exemption on my vacation home?

A: No. Both exemptions apply only to the home that is your principal residence. You can, however, apply the older disabled veteran’s exemption to your vacation home.

Q: What is Personal Property?

Q: Can a business owner file an extension?

Q: Is the information on a Rendition confidential?

Q: Can the Appraisal District request additional information?

* The statement is inadmissible in administrative or judicial proceedings, except to:

• Determine compliance with this section
• Find whether there was an effort to evade taxes
• Determine if documents were falsified
• Decide the owner’s protest before the Appraisal Review Board.

• If a Business Property Owner fails to timely file a Rendition before the deadline or fails to file one at all, the Chief Appraiser shall certify to the Tax Assessor/Collector for each taxing unit in the Appraisal District that imposes taxes on the business and/or property a penalty in the amount equal to 10% of the amount of taxes imposed that year.

Penalty for Fraud or Intent to Evade Taxation

• The Chief Appraiser shall also, impose an additional penalty equal to 50% of the amount of taxes imposed on the Business Property Owner who files a false statement or report with the intent to commit fraud; to evade the tax; engage in fraudulent conduct; for the purpose of affecting the course or outcome of an inspection, investigation, determination, or other proceeding before the Appraisal District. Enforcement of this section shall be by a proceeding initiated by the District Attorney or County Attorney of the county on behalf of the Appraisal District.

1. The compliance history with respect to paying taxes and filing statements or reports
2. The type, nature, and taxability of the specific property involved
3. The type, nature, size, and sophistication of the business
4. The completeness of the business records
5. The Business Property Owner reliance on advise provided by the Appraisal District that may have contributed to the failure to comply and the imposition of the penalty
6. Any change in the Appraisal’s District policy during the current or preceding tax year that may affect how property is rendered and
7. Any other factor that may have caused the Business Property Owner the failure to timely file a Rendition statement or report.

For more information, contact the Webb County Appraisal District’s Business Personal Property Department at 3302 Clark Blvd. Laredo, Texas 78043 (956) 718-4091 or you may visit the State Comptroller’s website www.window.state.tx.us

Q. What is Ag / Timber valuation?

A. It is a preferential assessment based on the productive capacity of the land to raise livestock, crops or timber rather than on the real estate market value of the land.

Q2. What do I need to do qualify for Agriculture valuation?

A2. You must apply for the Agriculture valuation and the property must meet the State mandated criteria for the Agriculture valuation/designation.

Q3. What land qualifies for Agriculture/timber appraisal? Or what are the criteria for qualifying Agriculture valuation?

A3. Taxpayers may qualify for agriculture/timber appraisal under “open-space valuation”, also called “1-d-1 appraisal”. To receive “1-d-1” appraisal, your land must meet the following criteria:

• Currently, the land must be devoted principally to agriculture use and/or timber production.
• Agriculture land and timberland must be devoted to production at a level of intensity that is common in the local area.
• Timberland must be used with the intent to produce income.
• The land must have been devoted to agricultural and/or timber production for at least five (5) of the past seven (7) years.

Very few land owners may fall under “1-d” or “agriculture use” appraisal since owners have to show at least 50% of their income come from farming or ranching.

Q4. What includes Agriculture use?

A4. Agricultural use includes the following:

• Production of crops, livestock, poultry, fish or cover crops .
• Leaving the land idle for a government program or for normal crop or livestock rotation .
• Land used for raising certain exotic animals or birds to produce human food or other items of commercial value and wood for use in fences or structures on adja­cent agricultural land also qualifies.

Q5. What type of animals would I need to have to qualify?

A5. The State Property Tax Code states keeping or raising livestock. “Livestock” means a domesticated animal that derives its primary nourishment from vegetation, supplemented if necessary with commercial feed. Livestock includes meat or dairy cattle, horses, goats, sheep, swine, and poultry. Wild animals are not livestock.

Q6. Is there a minimum number of acres or cattle needed related to livestock/animals to qualify?

A6. The Webb County Appraisal District (WCAD) Agricultural Advisory Board has established a 35 acres per animal (example cow) unit for guideline but, the intensity of use will determine the number of acres typically needed to make the operation feasible for different crops, cattle and livestocks that is common in the local area and therefore the minimum number of acres needed to qualify will change for different situations. The State Property Tax Code does not have a set amount of acreage or minimum number of cattle in order to qualify for Agriculture valuation.

Q7. So if I have thirty five (35) acres and one (1) cow, do I qualify for Agriculture valuation?

A7. No, the property needs to meet other criteria, such as is the property being used to the degree of intensity typical for area, is it a typical cattle grazing operation, is it currently under agriculture use and does the property meet the five year history.

Q8. Does my property need to be fenced off?

A8. Although the State Property Tax Code does not address the fence issue, a typical ranch/farm and prudent owner would have his property fenced off.

Q9. Who must apply for the Agriculture valuation/designation, the owner or lessee?

A9. The owner is responsible for applying for the Agriculture valuation/designation.

Q10. How do I apply for agricultural valuation?

A10. You must follow these guidelines:

• Obtain an application form from the appraisal district office or download online under Forms tab in Webb County Appraisal District website.
• Fill the application form out completely and return it to Webb County Appraisal District’s office
• File the application in timely manner on or after January 1st but no later than April 30 th.
• If your property is valued by more than one appraisal district, which occurs whenever a taxing unit crosses county lines, you must file an application with each appraisal district office.

Q11. What is the time frame for filing an application for agriculture valuation?

A11. Time frame for filing is after January 1st but no later than April 30th, without any penalty.  

If you miss the April 30 deadline, you may still file an application any time before the appraisal records are certified by Appraisal Review Board (ARB), which usually occurs on or about July 20. You will be charged a penalty for late filing equal to 10 percent of the tax savings you obtained through receiving agricultural ap­praisal for your land. This is a one time penalty. After the ARB approves the records, you can no longer apply for agricultural appraisal for that year.

Q12. What are rollback taxes and how are they triggered?

A12. The rollback tax is the difference between the taxes you paid on your land’s agricultural value and the taxes you would have paid if the land had been taxed on a higher market value for the last five (5) year. In addition, seven (7) percent interest is charged for each year from the date on which taxes would have been due. A rollback taxes for each of the previous five (5) years are triggered when the agriculture or timber use of land changes to nonagricultural use.

Q13. What is Wildlife Management (WLM)?

A13. The managing of indigenous wild animals those are native to Texas.

Q14. What do I need to do qualify for WLM?

A14. You must apply for the Agriculture valuation application along with a WLM PLAN. The property must meet the State mandated criteria for the WLM.

Q15. How do I qualify for WLM? Or what are the criteria for WLM?

A15. You must follow these guidelines.

• The land must previously qualify for Open Space (1-d-1) Appraisal before applying for WLM status.
• The land must be used primarily for the management of one or more indigenous wild animals not farming or ranching.
• Targeted species must be used for human consumption, medicine or recreation.
• The land must be managed to the degree of intensity typical for the area and must properly sustain the targeted species.

At the time the landowner applies for WLM status, at least three of the following seven management practices must be in use to sustain a breeding, migrating or wintering population of indigenous wild animals.

• Habitat Control
• Erosion Control
• Predator Control
• Provide Supplemental supplies of water
• Provide Supplemental supplies of food
• Provide Supplemental Shelter
• Making Census Counts

A written WLM Plan must be submitted to the chief appraiser on a Texas Parks and Wildlife department ( TPWD) supplied form before May 1st. Described activities and practices must be consistent with TPWD recommendations for the region where the property is located.

WLM= Wildlife Management
TPWD= Texas Parks & Wildlife Department

Q16. Where can I get the WLM Plan form?

A16. You may obtain the WLM Plan form from the Texas Parks and Wildlife Department office.

Local Office Address: 5201 Bob Bullock, Laredo, Texas Phone (956) 725-3826

Main Office: Texas Parks and Wildlife Department , 4200 Smith School Road, Austin, TX 78744 Toll Free: (800) 792-1112, Austin: (512) 389-4800

Website: http://www.tpwd.state.tx.us

Q17. Will I pay less tax if I qualify for Agriculture Valuation or WLM?

A17. Webb County Appraisal District doesn’t assess or deal with taxes or tax rates but agricultural valuation or WLM designation lowers the taxable value of land than the market value of land and typically reduces property tax bills for current year.

Q18. Who makes the final determination on Agriculture Valuation or WLM application?

A18.The Chief Appraiser makes the final determination on the application. The chief appraiser might approve the application or might request additional information and/or request property inspection. If the chief appraiser rejects the application, a denial notice is sent to the owner to the address given in the application by mail.

Q19. If I disagree with denial notice or decision of chief appraiser, what can I do about it?

A19. If you disagree, you may file a protest with the appraisal review board. You must file this protest within 30 days of the date on which the notice was mailed to you.