Bay Area Edition | July 2022

INSIDE INFORMATION

2022 REAL ESTATE EDITION

THE SCOOP ON HOMESTEAD EXEMPTIONS COMPILED BY JAKE MAGEE Homestead exemptions are a way for Texas homeowners to save money on their property tax bills. There are several dierent types of homestead exemptions available, and they oer varying benets. To apply, contact the Harris County Appraisal District at 713-957-7800 or www.hcad.org or the Galveston Central Appraisal

WHAT IS A HOMESTEAD EXEMPTION? Exemptions allow homeowners to save on property tax bills. An exemption includes withheld value and a homestead cap.

WITHHELD VALUE

HOMESTEAD CAP

With exemption Appraised value

A homestead exemption removes some or all of a home’s value from being taxed. School districts must oer a $40,000 exemption, and other entities may exempt up to 20% of a home’s value.

In addition, a homestead exemption limits the increase of your appraised property value to 10% annually so long as no additional improvements or extensive renovations are made to the property.

$300,000

– $65,000 School district exemption

Without exemption Appraised value

Appraised home value 2021: $300,000 2022: $360,000

20%

$0.011797* $300,000

$245,000 $0.011797*

Clear Creek ISD 2021-22 tax rate

District at 409-935-1980 or www.galvestoncad.org.

Taxable value without exemption 2022: $360,000

Total owed to CCISD

$2,890.27

$3,539.10

SOURCES: TEXAS COMPTROLLER, HOUSTON PROPERTIES, HARRIS COUNTY APPRAISAL DISTRICT, LEAGUE CITY, CLEAR

*TAX RATE IS THE DISTRICT RATE DIVIDED BY 100.

Taxable value with exemption 2022: $330,000

CREEK ISD, GALVESTON COUNTY TAX ASSESSOR COLLECTORCOMMUNITY IMPACT NEWSPAPER

$3,539.10

= $2,890.27

$648.83 Savings with exemption

–

TYPES OF

LOCAL EXEMPTIONS

The following general exemptions exist for Bay Area homeowners. Appraisal districts can provide a comprehensive list.

Various homestead exemptions are available to Texan homeowners. General residence , the most common and easiest exemption to get, is for a homeowner’s primary residence. Age 65 or older exemption gives an additional $10,000 o for school districts in addition to the $40,000 general residence exemption. This exemption also exemptions vary but can equal up to 100% of a home’s value from all taxing entities. Spouses of persons killed in line of duty exemptions can withhold 100% of a home’s value from taxation, so long as the surviving spouse has not remarried. freezes school district taxes. Disabled persons and veterans HOMESTEAD EXEMPTIONS

SCHOOL DISTRICT EXEMPTIONS

CITY EXEMPTIONS

COUNTY EXEMPTIONS

Harris County

Houston

Clear Creek ISD

5% o home’s value

o home’s value $40,000 +

20% o home’s value

Galveston County

League City

“HOMESTEAD EXEMPTIONS CAN BE CRUCIAL FOR SOME PEOPLE. IT HELPS SAVE MONEY.” ASHLEY TILTON, HOUSTON PROPERTIES REALTOR

20% o home’s value

TEXAS LAW CHANGES Two recent law changes benet new and longtime bills by allowing homeowners to acquire exemptions earlier and increasing how much value is withheld. homeowners’ property tax

As of Jan. 1, 2022, a qualied homeowner can claim a homestead exemption as of the date they own and occupy the property so long as the previous owner did not claim a homestead exemption in the same year. The change allows homeowners to benet from a homestead exemption, including the cap, earlier. Texas Tax Code change Homeowners had to wait until Jan. 1 of the following year they purchased the home to claim a homestead exemption. They would not see a cap on their property appraisal until Jan. 1 after the year they bought their home.

If residents who purchased a home in 2021 have been granted a homestead exemption this year, they will see withheld value from various taxing entities in 2022, but their homestead value will not be capped at 10% growth until 2023.

State propositions 1 & 2 The homestead exemption for each school district across the state was $25,000 .

Texas residents voted in May in favor of a proposition upping the school district exemption to $40,000 . Texas voters also approved a separate proposition to potentially reduce tax rates for school maintenance and operations for homeowners with a 65 or older or veteran exemption.

BAY AREA EDITION • JULY 2022