INSIDE INFORMATION
2022 REAL ESTATE EDITION
THE SCOOP ON HOMESTEAD EXEMPTIONS COMPILED BY ANNA LOTZ & JAKE MAGEE Homestead exemptions are a way for Texas homeowners to save money on their property tax bills. There are several di erent types of homestead exemptions available, and they o er varying bene ts. To apply, contact the Montgomery Central Appraisal District at 936-756-3354 or www.mcad-tx.org.
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 o er 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
– $40,000 School district exemption
Without exemption Appraised value Conroe ISD 2021-22 tax rate
Appraised home value 2021: $300,000 2022: $360,000
20%
$300,000
$260,000
Conroe ISD 2021-22 tax rate
$0.01176*
$0.01176*
X
X
Taxable value without exemption 2022: $360,000
Total owed to CISD
Total owed to CISD
$3,057.60
$3,528.00
SOURCES: TEXAS COMPTROLLER, MONTGOMERY CENTRAL APPRAISAL DISTRICT, CONROE ISD, WILLIS
*TAX RATE IS THE DISTRICT RATE DIVIDED BY 100.
Taxable value with exemption 2022: $330,000
ISD, MONTGOMERY ISD, CITY OF CONROE, CITY OF MONTGOMERY COMMUNITY IMPACT NEWSPAPER
$3,528.00
= $3,057.60
$470.40 Savings with exemption
–
TYPES OF
LOCAL EXEMPTIONS
The following general exemptions exist for Conroe and Montgomery 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
COUNTY EXEMPTIONS Montgomery County
CITY EXEMPTIONS
Conroe ISD
Willis ISD
Montgomery
o home’s value $40,000
o home’s value $40,000
20% o home’s value
20%
o home’s value
Montgomery ISD
o home’s
value $40,000
Conroe
""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 bene t 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 quali ed 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 bene t 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.
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CONROE MONTGOMERY EDITION • JULY 2022
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