The 87th Texas Legislative Session
Tax Code Changes You Can Use Today
By Lee D. Winston | June 13, 2022
The Texas Legislature recently made numerous changes to the Texas Property Tax Code. Our firm has identified and summarized changes from the 87th legislative session that you and your clients can use today. This post concerns relief for residential home buyers.
Homestead Tax Relief for New Homebuyers
|A. Immediate Qualification.|
|B. Quicker 10% Cap Application.|
|C. Tax Calculation for Year Qualifying.|
A. Immediate Qualification.
Enacts: Tex. Tax Code § 11.42(f). Exemption Qualification Date.
Effective: January 1, 2022.Summary: This enacts subsection (f) to enable a person who acquired a residential property after January 1 to immediately qualify for homestead exemption (Tex. Tax Code § 11.13), instead of waiting until January 1 of the following year, if the preceding owner did not receive the same exemption for that tax year. This immediate qualification does not apply to exemptions authorized by section 11.13(c) (relating to an additional $10,000 exemption by a school district on the appraised value of a homestead of a disabled adult or an individual 65 or older) or section 11.13(d) (relating to a disabled adult or an individual 65 or older to the exemption by a taxing unit of a portion of the appraised value of the owner’s homestead if the exemption is adopted under certain conditions).
B. Quicker 10% Cap Application.
Enacts: Tex. Tax Code § 23.23(c-1). Limitation on Appraised Value of Residence Homestead.
Effective: January 1, 2022.
Summary: This enacts subsection (c-1) to enable a property owner who qualifies for a homestead exemption under newly enacted Section 11.42(f) (purchase of a property where the preceding owner did not receive homestead exemption) to receive the benefits of the 10 percent cap in appraised value for the January 1 of the tax year following the tax year in which the owner acquired the property.
C. Tax Calculation for Year Qualifying.
Enacts: Tex. Tax Code § 26.1115. Calculation of Taxes on Residence Homestead Generally.
Effective: January 1, 2022.
Summary: This enacts this new section to provide the methodology for computing taxes owed by a property owner who qualifies for a homestead exemption under newly enacted Section 11.42(f) (purchase of a property where the preceding owner did not receive homestead exemption). The calculation is as follows.
| taxes imposed (entire year) |
(-) taxes if qualified for homestead (entire year)
|(x) # days before ownership ÷ 365|
|(+) taxes if qualified for homestead (entire year)|
|(=) Taxes owed|
In our identification above, we provide general summaries of the text of newly enacted and/or amended statutes codified from the 87th session. The summaries are for informational purposes only and shouldn’t be relied on as legal advice or as a substitute for the complete text of the referenced statute. Any questions regarding this publication should be directed to an attorney or other appropriate counsel, as necessary.
 To review the text of H.B. 3833 click the following link (or copy and past): https://capitol.texas.gov/BillLookup/Text.aspx?LegSess=872&Bill=SB8.