New rule means changes for homestead exemption applicants

BROWNSVILLE -- The party’s over. As of Sept. 1, homeowners applying for a new property tax homestead exemption must show proof they actually live in the home they claim as their principal domicile.

The law, passed by the Texas Legislature last session in the form of House Bill 252, is intended to close a loophole through which some part-time Texas residents have been granted the exemption on residential properties they owned, but in fact occupied only part of the year and not as principal residences. Texas residents are allowed homestead exemptions on only one piece of property.

The new rule requires applicants to send, along with the exemption application, a Texas driver’s license or state ID card, and vehicle registration receipt.

Applicants who don’t own a vehicle can send a current utility bill showing their name and address along with an affidavit, provided in the application, indicating vehicle non-ownership. The address on the documents must match the address for which the homestead exemption is requested. The new requirement only affects new applications and does not apply to homeowners who already have homestead exemptions.

“The homestead exemption is intended to help relieve the tax burden of Texas full-time residents,” said State Comptroller Susan Combs. “This new legislation ensures that the system is working fairly and legally.”

R.J. DeSilva, a spokesman with the State Comptroller’s Office, said there was no estimate of how many homeowners might have been gaming the system or how much money it might have cost taxing districts.

The general homestead exemption knocks $15,000 off a home’s taxable value for school taxing districts. In addition to the general homestead exemption, the new law affects new applications for exemptions allowed for residents over 65 years old, the disabled, disabled veterans, homeowners’ surviving spouses, and manufactured homes.

Beginning Sept. 1, those who apply for the exemption on a manufactured home must also provide proof of purchase of the home, and a statement of ownership and location issued by the Texas Department of Housing and Community Affairs.

There is no charge for applying for a homestead exemption. Cameron County homestead exemption forms can be downloaded from the Cameron County Appraisal District website, www.cameroncad.org, or are available by calling (956) 399-9322.