The Texas Legislature recently passed HB 3613. This
bill provides for a 100% exemption for the residence homestead of qualified
disabled veterans. The bill also increases the amount of the regular disabled
veteran's exemption for veterans who have a disability rating of 30%, 50%, or
70%.
Q. What are the qualifications for the new
exemption?
You qualify for the new 100% homestead exemption if
you meet these requirements:
To get this exemption, you must fill out and return
the Application for Residence Homestead Exemption.
You must attach documentation as well. You may attach a copy of your award
letter, a “VA tax letter,” or another document from the United States
Department of Veterans Affairs showing 100% disability compensation due to a
service-connected disability and a rating of 100% disability or of individual
unemployability.
Q. How much of my home’s value will it exempt?
If you qualify, your home will be totally exempt
from property taxes in all jurisdictions, regardless of the home’s value. If
you co-own the home with someone other than your spouse, your share of the
home’s value will be exempted.
Q. I already have a homestead exemption. Do I
need to apply for the new exemption?
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?
Qualifications for the new homestead exemption
differ from those for the prior disabled veteran’s exemption. In particular,
you must show that you actually receive 100% disability compensation for a
service-connected disability, and have a rating of 100% disability or
individual unemployability.
Q. When is the new homestead exemption
effective?
It is retroactive to January 1, 2009. If you owned
your home and qualified on that date, you’ll receive the exemption for 2009.
Q. I bought my home after January 1, 2009. Will
I get the new exemption for part of 2009?
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?
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. If the VA reduces or
changes either of these ratings, it is your responsibility to notify the
appraisal district in writing.
Q. If something happens to me, will the new
homestead exemption pass to my spouse or children?
No. Only the disabled veteran can claim the new
100% homestead exemption.
Q. I owe delinquent taxes on my home for years
before 2009. Will the new exemption affect those?
No. The exemption will apply for 2009 forward. It
does not affect prior years.
Q. I am in a hospital or nursing home. Can I
still get the new exemption?
Yes, as long as you intend to return to the home
when you are able.
Q. My spouse and I own our home together. How is
the new homestead exemption calculated?
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 new homestead exemption?
Yes.
Q. I don’t currently have a homestead exemption.
Do I need to apply for the regular homestead exemption in addition to this one?
You should also apply for the regular homestead
exemption. This 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?
Yes, for the same reasons given above.
Q. How much of my home’s value will the new
exemption exempt?
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?
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?
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 a disability homestead
exemption on my home. What is the difference between that one and this one?
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 are 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?
No. Both exemptions apply only to the home that is
your principal residence. You can, however, apply the prior disabled veteran’s
exemption to your vacation home.
Q. How do I get documentation of my status from
the VA?
You can contact the VA at 1-800-827-1000. Their
website is at www.va.gov.