If you recently received a letter from your county appraisal district asking you to verify your homestead exemption, you’re not alone. Many Texas homeowners are confused about why they need to re-verify something they’ve had for years.
The reason? A new state law that went into effect in 2023.
Understanding the New Texas Law
The Texas Legislature now requires homeowners to verify their homestead exemption every five years to ensure only eligible homeowners receive the benefit. This means exemptions are no longer indefinite and must be actively confirmed when prompted by the county central appraisal district.
The Property Tax Code §11.43 allows the chief appraiser to request an owner reapply for their Residence Homestead Exemption. In 2023, under SB 1801, the 88th Legislature added §11.43 (h-1) which states, “The chief appraiser of an appraisal district shall develop a program for the periodic review of each residence homestead exemption granted by the district under §11.13 to confirm that the recipient of the exemption still qualifies for the exemption. The program must require the chief appraiser to review each residence homestead exemption at least once every five tax years. The program may provide for the review to take place in phases, with a portion of the exemptions reviewed in each tax year.”
How the Verification Process Works
Every five years, the chief appraiser of each county appraisal district in Texas will:
- Review homestead exemptions
- Send a re-verification letter to homeowners
- Require homeowners to respond within a specified time frame
Homeowners do not need to re-verify unless they receive a notice from CAD.
If a homeowner does not respond, they risk losing their homestead exemption and paying higher property taxes.
What to Do If You Receive a Re-verification Letter
If you receive a verification notice, follow these steps to ensure you do not lose your exemption:
- Complete the re-verification form provided by your county appraisal district.
- Attach a copy of your Texas driver’s license or ID card (ensuring the address matches your homestead property).
- Submit the form within the deadline stated in the letter.
What Happens If You Don’t Respond?
If you fail to respond, your homestead exemption will be removed, and your property will be taxed at its full appraised or market value. You may have the option to protest the removal, but responding on time is the easiest way to avoid complications.
If you want to learn more about the benefits of a homestead exemption, check out my other blog here:
Residence Homestead Exemption: Saving Money on Property
As a Realtor, I have a fiduciary duty to always look out for my clients' best interests, ensuring you stay informed about important homeowner benefits.
Please contact me for your real estate needs!
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