TEMPORARY EXEMPTIONS AVAILABLE FOR PROPERTIES DAMAGED DURING SPRING STORMS
Property owners who sustained damage from spring storms may qualify for a temporary property tax exemption this year.
On May 2nd, Governor Greg Abbott issued a weather-related disaster declaration for Washington County. The Washington County Appraisal District says in an area declared a disaster by the governor, property tax code allows qualified property that is at least 15% damaged by the disaster to receive a temporary exemption no later than 105 days after the governor’s declaration. Washington County’s deadline is August 15th.
Qualified property includes tangible business personal property used for income production if the owner filed a rendition; an improvement to real property, which would include residential, commercial, industrial, multi-family and other real property buildings; and certain manufactured homes used as a dwelling.
The appraisal district determines if the property qualifies for the temporary exemption and assigns a damage assessment rating of Level I, II, III or IV based upon available information. The district may rely on information from insurance adjusters, repair estimates, or other sources like the Federal Emergency Management Agency when making a determination.
Level Damage Assessment Damage Description Exemption Percentage I 15% < 30% Minimal, may continue to be used as intended 15% II 30% < 60% Nonstructural damage and waterline <18” above floor if flooded 30% III 60% < 100% Significant structural damage and waterline 18” + above floor if flooded 60% IV 100% Total loss; repair is not feasible 100%
Qualification for the exemption is determined by utilizing owner-provided documentation in the form of estimates or receipts for damages that occurred during the disaster-declared event. Damage amounts will be compared to the qualified property values from the year the disaster occurred to determine if any damage assessment percentages are met.
If an assessment percentage is met, the amount of the exemption is determined by multiplying the value of the damaged structure or personal property by the exemption percentage and then prorated for the number of days remaining in the year after the date the governor declares the disaster.
The appraisal district must send written notice of application approval, modification, or denial to the applicant. The temporary disaster area exemption expires on January 1st of the following year.
Below is an example provided for a $200,000 improvement, which would need the following amounts in damage to qualify for the exemption:
Cost to Repair Exemption Level Damage Assessment Exemption Percentage < $30,000 NA Not Eligible NA $30,000 - $59,999 I 15% < 30% 15% $60,000 - $119,999 II 30% < 60% 30% $120,000 - $199,999 III 60% < 100% 60% $200,000 IV 100% 100%
The exemption percentage would then be applied and prorated based on the date of the declaration and how many days are left in the year, divided by the total number of days in the year. Multiplying the value of the property (example: $200,000) by the percentage of the damage assessment (0.15) and the proration amount (0.66) will provide the total that should be exempted.
Application forms can be found on the Washington County Appraisal District’s website, www.washingtoncad.org.