There are several different property exemptions that the property you own may qualify for. Today we’re going to talk about a few of them that are common in this area.
Land designated for agricultural use is appraised at its value based on the land’s capacity to produce agricultural products. This could range from growing hay to feed livestock to producing crops such as corn, wheat, soybeans, livestock, etc. The value of land based on its capacity to produce agricultural products is determined by capitalizing the average net income the land would have yielded from production of the agricultural products during the five years preceding the current year. If you purchased a home that is on a large tract of land, and the property meets the requirements for this exemption you can apply to receive this exemption on part of your land. If you have property that you think would meet the requirements for this exemption, we suggest you consult with the appraisal district.
Disabled Veteran Exemption:
“Disabled veteran” means a veteran of the armed services of the United States who is classified as disabled by the Veterans’ Administration or its successor or the branch of the armed services in which the veteran served and whose disability is service-connected. The amount of the exemption will depend on the severity of the disability incurred as a result of service. A full property tax exemption is available for veterans who are 100% disabled as a result of service. If you are a disabled veteran that has recently purchased a home, we suggest you consult with the appraisal district to determine the extent of your exemption.
Over 65 Exemption:
You will qualify for this exemption on the date you become 65 years of age. This exemption includes a school tax limitation or ceiling. For this exemption you must submit proof of your age to the appraisal district. This can be in the form of a copy of your birth certificate or a copy of the front and back of your drivers license. This may be transferred to another property if you change your primary residential status to that property. For example, if you are over 65 and have this exemption on your home and decide that you are needing to downsize to a smaller home, once you purchase your new home you can transfer this exemption to that new residence.
Disability Homestead Exemption:
You must meet all of the qualifications for the General Residential Homestead exemption outlined above and you must be under a disability for the purposes of payment of disability benefits under the Federal Old-Age, Survivor’s and Disability Insurance Act. Or, you must have met the definition of disabled in that act on January 1 of the year for which you are applying. You must submit proof of disability which includes a current printout from Social Security showing that you are disabled and the date on which your disability began. You may also submit a current letter of verification from your physician stating that you are disabled, giving the date your disability began, and that you are unable to engage in any substantial gainful work for a period which has lasted or can be expected to last for a continuous period of a year or more. You may not receive both this exemption and the over-65 exemption.
To see if you qualify for any of these exemptions or other exemptions, please contact your local appraisal district for a complete list of exemptions and the qualifications for each one. If you have any questions please don’t hesitate to reach out to us here at Red River Title Company.