Frequently Asked Questions2021-12-03T21:55:50-06:00

FREQUENTLY ASKED QUESTIONS

Click on a topic below to scroll directly to the list of related FAQs. If you need additional assistance, please contact us.

About TCAD
EXEMPTIONS
NOTICES OF APPRAISED VALUE
PROPERTY TAXES
PROTESTS
RESIDENTIAL
BUSINESS PERSONAL PROPERTY
LAND AND AGRICULTURE
ABOUT TCAD

What is TCAD’s fax number?2020-11-20T14:58:19-06:00

We have discontinued accepting fax communications. We accept US mail, email and hand delivery.

What does an appraisal district do?2020-10-29T14:38:28-05:00

Each Texas county is served by an appraisal district that determines the value of all of the county’s real and personal property. Generally, a local government that collects property taxes, such as a county, city and school district, is a member of the appraisal district.

What is a taxing entity?2020-10-29T14:48:13-05:00

Taxing entities are the local government entities such as  cities, hospital districts, junior colleges, and municipal utility districts. Taxing entities provide services to the taxpayers they service such as schools, roads, police, fire, and other services taxpayers expect.

By what authority is my property taxed?2021-01-08T11:40:33-06:00

Property is taxed by the authority of the Texas Constitution. The Constitution sets forth five basic principles for property taxes in Texas.

  1. Taxes must be equal and uniform. No single property or type of property should pay more than its fair share.
  2. Property must be appraised on its current market value meaning the price that it would sell for on the open market when both the buyer and seller seek the best price and neither is under pressure to buy or sell.
  3. Each property in a county must have a single appraised value. This is guaranteed by the use of the county appraisal districts.
  4. All property is taxable unless federal or state law exempts it from the tax.
  5. Property owners have a right to reasonable notice of increases in their appraised property value.
EXEMPTIONS
Is there a fee to file for an exemption?2021-01-08T13:41:36-06:00

There is no fee to file and you do not have to hire anyone to file for you.  It is not necessary for homeowners to pay anyone to file for a homestead exemption or to obtain a refund for the late filing of a homestead or senior citizen exemption. Homestead exemption forms are available on our website.

How much does it cost to file for a homestead exemption?2020-11-20T15:03:16-06:00

There is no fee to file and you do not have to hire anyone to file for you.  It is not necessary for homeowners to pay anyone to file for a homestead exemption or to obtain a refund for the late filing of a homestead or senior citizen exemption.

I own more than one property. Can I have a homestead exemption on both?2020-11-24T20:40:21-06:00

No. You may only receive a homestead exemption on one property, your primary residence.

The address on my license does not match my property’s address. Can I submit a passport or Concealed Handgun License?2020-11-20T15:14:59-06:00

No. Per the Texas Property Tax Code, the district cannot accept a passport or Concealed Handgun License (CHL) for this purpose. A Texas Drivers License or a DPS ID displaying the property address are the only acceptable forms of identification that the appraisal district can use.

I own a property and have a homestead exemption. I also own another property with someone else. Can that person qualify for a homestead exemption on the other property?2020-11-24T20:44:30-06:00

The property you own with another person may qualify for a prorated homestead exemption based on the other person’s ownership in the property and if he/she does not have another property with a homestead exemption. You will not qualify because you already have a homestead exemption for your primary residence.

I just purchased my home. When can I apply for a homestead exemption?2020-11-20T15:00:43-06:00

To qualify for a homestead exemption, you must own and occupy the property on or before January 1st of the year for which you are applying.  If you recently purchased a home, you may submit the form now and the homestead will be applied to the year in which you qualify.

Can I claim a homestead exemption on a mobile home if I do not own the land?2020-11-20T15:02:10-06:00

Yes. Please include a copy of your title to the mobile home or a verified copy of your purchase contract along with your exemption form.

How many acres can I claim as my homestead?2021-01-08T12:12:27-06:00

State law allows you to claim the portion of your land that you maintain for residential purposes, but this amount may not exceed 20 acres. Generally, one acre or less is maintained for homestead purposes.

What types of exemptions require an annual application?2021-05-03T10:49:27-05:00

The law requires an annual application by April 30 for some types of exemptions, including property exempted from Taxation by Agreement (Property Tax Abatement), Historical and Archeological Sites, Miscellaneous Exemption, Low Income Housing Exemption, and exemption of Freeport Goods.

Cemeteries, charitable organizations, youth development organizations, religious organizations, non-profit private schools, and exemption of Pollution control property approved by the Texas Commission on Environment Quality (TCEQ) do not have to reapply for the exemption each year once the property tax exemption is granted, unless by written notice, the Chief Appraiser requests the property owner to file a new application. However, if their exempt property changes ownership or if their qualifications for exemption change, they must reapply.

I forgot to apply for my homestead exemption. Can I apply late?2021-05-03T10:53:31-05:00

You may file a late homestead exemption application if you file it no later than two years after the date the taxes become delinquent.

What is a homestead exemption?2020-10-29T20:18:54-05:00

A homestead exemption lowers your property taxes by removing part of the value of your property from taxation. There are several different types of homestead exemption, including the general residence homestead exemption and exemptions for seniors, people and veterans with disabilities, and some surviving spouses.

Do I have to apply for a homestead exemption every year?2021-05-03T11:01:48-05:00

No, you do not have to reapply for a homestead exemption unless the Chief Appraiser requests a new application in writing, you move to a new residence, or your qualifications for an exemption change.

Homestead exemptions do not transfer between owners. New property owners must submit a new application for a homestead exemption on their property.

Other than a homestead exemption, what other exemptions might I be able to qualify for?2021-05-03T12:28:19-05:00

While the homestead exemption requires you to own and occupy on January 1 to qualify, the following exemptions do not. You must own and occupy your property at some point in the tax year you are applying for to obtain the following exemptions on a qualified residence:

  • Over 65: You may apply at any time during the year you turn 65 years of age
  • Disabled Person: You must be unable to engage in gainful work due to disability or age 55 years or older, blind, and unable to engage in your previous work because of blindness
  • 100% Disabled Veteran Homestead: You must be rated 100% disabled or paid 100% compensation due to service connected disability
Will I be notified when my application has been approved?2021-05-03T11:03:31-05:00

If you apply through our homestead portal, you will receive an email notification upon processing.

Homestead status is displayed on our website. Please check our website to verify the homestead has been added to your account at the appraisal district, usually 4-6 weeks after your submission.

How do I apply for a homestead exemption?2021-05-03T11:14:03-05:00

You may apply online or complete a paper application.  If you complete the paper application, you may submit it in several ways:

By email: CSinfo@tcadcentral.org

By mail: PO Box 149012 Austin, TX 78714-9012

By office drop box: 850 E. Anderson Ln. Austin, TX 78754

NOTICES OF APPRAISED VALUE
I did not receive a Notice of Appraised Value. Why not?2020-11-24T20:47:46-06:00

If you have a tax agent or representative you will not receive the notice.  The notice is mailed to the agent of record.  Please contact your tax agent for a copy of the notice.

If your property value increased $1,000 or less, a notice of appraised value will not be mailed.  Property values are available on the TCAD website after notices have been mailed.

What if TCAD’s records do not reflect the current ownership of a property?2020-11-24T20:46:44-06:00

TCAD uses deed records recorded with the Travis County Clerk’s office to correct ownership information.  Verify that your deed has been filed with the Travis County Clerk at (512) 854-9188. If, after 90 days from the date of the closing the property, the appraisal records do not reflect the current ownership, please contact the Travis Central Appraisal District at (512) 834-9317.

What is an improvement?2021-01-20T13:36:44-06:00

In appraisal, the term “improvement” is a building, structure, fixture, or fence erected on or affixed to land; or a transportable structure that is designed to be occupied for residential or business purposes, whether or not it is affixed to land, if the owner of the structure owns the land on which it is located, unless the structure is unoccupied and held for sale or normally is located at a particular place only temporarily.

Why does my property have an assessed value?2021-01-20T13:10:01-06:00

Your property’s “assessed” value is not the same as its “market” value. The market value of your property may increase or decrease by any amount year-to-year.  If you have a residential homestead exemption on your property, the increase in your assessed value is limited from year-to-year to 10% so long as changes have not been made that add “new value” (such as an “addition”).

Why did my value change?2021-01-20T13:35:51-06:00

Value changes may occur for several reasons. Often sales information may indicate the current appraised value is lower/higher than fair market.  Also, corrections to appraisal records may affect value, such as a change in square footage, a pool not previously accounted for, or a correction of a property characteristic.

When will notices be mailed out?2021-01-20T13:07:48-06:00

Notices of Appraised Value are mailed out in April.

I purchased a property that has been split. When will my name be shown as the owner?2021-01-20T13:08:54-06:00

If you purchased a property that will be split after January 1st, then the ownership will not be updated until the following calendar year.

What is fair market value?2021-01-21T14:50:34-06:00

Fair market value means the price at which a property would transfer for cash or its equivalent under prevailing market conditions if:  Exposed for sale in the open market with a reasonable time for the seller to find a purchaser. Both the seller and the purchaser know all of the uses and purposes to which the property is adapted and for which it is capable of being used and of the enforceable restrictions on its use. Both the seller and the purchaser seek to maximize their gains and neither is in a position to take advantage of the exigencies of the other.

PROPERTY TAXES
When are my property taxes due?2020-11-24T20:36:52-06:00

Taxes are due when you receive your tax statement around October 1st.  You have until January 31st of the following year to pay your taxes at the Tax Collector’s Office.

What if I cannot or do not pay my taxes?2021-01-08T11:51:42-06:00

If you do not pay your taxes by the deadline, penalty and interest charges will be added to your original tax obligation and you will receive delinquent tax notices.  You may be sued and you may face problems selling your property.

If you are having difficulty paying your property taxes, contact your local tax office. You may have the option to set up an installment plan.  In some cases, you may be able to request a deferral or all or a portion of your tax bill.

When are my property taxes delinquent?2020-11-24T20:35:16-06:00

Penalty and interest charges begin accumulating on most unpaid tax bills on February 1 of each year.

Who sets tax rates?2021-01-08T11:47:51-06:00

The taxing entities set the tax rate which determines how much property tax each property owner pays.

By what authority is my property taxed?2021-01-08T11:40:33-06:00

Property is taxed by the authority of the Texas Constitution. The Constitution sets forth five basic principles for property taxes in Texas.

  1. Taxes must be equal and uniform. No single property or type of property should pay more than its fair share.
  2. Property must be appraised on its current market value meaning the price that it would sell for on the open market when both the buyer and seller seek the best price and neither is under pressure to buy or sell.
  3. Each property in a county must have a single appraised value. This is guaranteed by the use of the county appraisal districts.
  4. All property is taxable unless federal or state law exempts it from the tax.
  5. Property owners have a right to reasonable notice of increases in their appraised property value.
I applied for a tax deferral. How will I know when my deferral will be processed or applied?2020-11-24T20:38:47-06:00

TCAD processes the deferral request and sends the information to the Travis County Tax Assessor’s Office. You may contact the tax office with any concerns or questions you may have.

PROTESTS
What happens if I do not appear for my formal hearing?2020-11-30T18:59:56-06:00

Your protest will be dismissed if you do not appear in person, through a valid affidavit, by agent, or by pre-scheduled telephone hearing. You may request that the ARB Chairperson reopen the hearing by sending a letter within 4 days of the dismissal citing the “good cause” reason for failure to appear.

When will I get my notice about a formal hearing?2020-11-30T19:04:52-06:00

The Appraisal Review Board (ARB) sets protest hearing schedules. You will receive a notice of protest hearing letter by general mail at least 15 days before the scheduled formal hearing date. Included with that letter will be a copy of Property Taxpayer’s Remedies (a publication of the State Comptroller’s Office), a copy of the ARB hearing procedures, and a statement that you have the right to inspect the information that the Appraisal District plans to introduce at your hearing.

What should I bring to my formal hearing?2020-11-30T19:06:55-06:00

Please bring your hearing letter to expedite the check in process. You should also bring any information that you want to present to support the value you think is correct. Bring 5 sets of the evidence to the formal hearing.

Can someone else represent me during my protest?2021-01-20T13:14:04-06:00

Yes. If the person you are authorizing is not a co-owner listed on the deed and is a licensed property tax consultant (also called an agent), you must provide written authorization on the Comptroller’s mandated Authorization of Agent form. It must be , signed by you, the property owner, naming the person to represent you. The person you select should be able to discuss the property from personal knowledge and should file the form as soon as possible. At the very least, the person must bring the appropriate form to the ARB hearing.

If the person you wish to represent you is not a licensed property tax consultant, there must be some legal authorization that allows the person to speak on your behalf (power of attorney or licensed attorney). Similarly, the person you select should be able to discuss the property from personal knowledge.

You may bring someone with you to the hearing that can speak during the hearing. However in this circumstance you must be present to identify on the record that the person is speaking on your behalf.

Can I get a list of sales to help me in my protest?2021-01-20T13:15:00-06:00

Per Section 22.27 of the Texas Property Tax Code, the Appraisal District is prohibited from disclosing sales information gathered from a private source. Taxpayers who have protested his or her property value are entitled to the sales used to value his or her property, but no other sales information.

When will I receive the evidence related to my protest?2021-01-20T13:12:13-06:00

Property owners and/or their authorized tax agents that protested using the online eFile system(s) and requested evidence packets will have the evidence made available electronically on the eFile system(s) as time and law allow. Property owners and/or their authorized tax agents that did not use the online eFile system and made a written request to have evidence sent will receive the evidence by general mail as time and law allow. If you did not make a written request to have the evidence sent to you, you may inspect and/or make copies of the evidence at the appraisal districts office 14 days prior to your scheduled hearing during normal business hours by informing staff at the Customer Service department that you wish to inspect your evidence and providing them the account number(s) for the property protested. The evidence packets for ARB hearings are not the same as information requested under the Public Information Act.

I am deaf. Will TCAD arrange for me to have an interpreter at my hearing?2020-11-30T19:10:40-06:00

Yes, at least 48 hours prior to your formal hearing please notify the district and we will arrange for an American Sign Language interpreter. Please send the request to hr@traviscad.org.

Where are ARB hearings conducted?2020-11-30T19:01:42-06:00

In-person hearings are conducted at the Travis Central Appraisal District office located at 850 E Anderson Lane. The hearing letter you receive will have specific instructions regarding the location of your hearing.

Can I get a copy of the appraisal roll?2021-01-20T13:19:09-06:00

Yes, an electronic copy of the entire appraisal roll data is made available free of charge on the appraisal district website. Upon a request the Appraisal District can provide PDF copies of the appraisal roll by property type, subdivision, zip code, and several other predefined criteria. The cost for PDF appraisal rolls are $5. Please contact the Records Coordinator for a list of predefined criteria. Additional criteria for PDF creation may be requested but will incur programming and manipulation charges.

If I buy a foreclosed property and bring in my closing statement, will my market value be reduced?2021-01-20T13:38:08-06:00

If the foreclosed property was given an adequate exposure to the market, there was no attractive financing associated with it, the closing and repair costs were typical, and the sale is representative of its neighborhood, then it will.  If the price it sold for is not consistent with the marketplace of a property with similar quality and condition, it will not.

Can I get electronic shape files?2021-01-20T13:17:05-06:00

Taxpayers may also purchase a copy of our GIS shape file that include all of Travis County. You must have GIS or ESRI to use the GIS shape file. This information can be put onto a CD or transferred to an FTP site. The cost is $25.

How do I submit an affidavit before my hearing?2021-01-20T13:16:04-06:00

The affidavit and supporting documents must be received by the ARB before the scheduled hearing date. Delivering them to our office in person is best. If you mail them, it is a good idea to send them return receipt requested. Be sure to mail them in plenty of time and be sure the address is correct. The affidavit must state that you swear or affirm that the information it contains is true, and sworn to before someone authorized to verify the Affidavit . Be sure to clearly place in the affidavit or a cover letter, the property owner’s name, address, account number, property description, and the date and time of the hearing.

RESIDENTIAL
Why are you inspecting my property?2021-01-21T14:51:22-06:00

In order to produce accurate appraisals on all property within Travis County, we must visit them periodically to ensure that the data used in making the appraisal is still correct. For instance, the appraisal district could have received a copy of a building permit indicating that a room was being added and an appraiser may inspect the property to ensure the property characteristics are correct.

How can I get my name and address removed from the TCAD website?2021-01-20T08:06:04-06:00

Texas Tax Code §25.025 permits certain persons to request that the appraisal district restrict from public access any information in the appraisal district records required by §25.02 that could be used to identify their home addresses.

The State Comptroller of Public Accounts prescribes the form on which these confidentiality requests may be made. Copies of the form 50-284 are available in our form library.

How do you arrive at the value of a house?2021-01-21T14:48:25-06:00

The house is measured, classified, and depreciated due to its condition and age. It is valued based on the sales of similar properties.

What is an improvement?2021-01-20T13:36:44-06:00

In appraisal, the term “improvement” is a building, structure, fixture, or fence erected on or affixed to land; or a transportable structure that is designed to be occupied for residential or business purposes, whether or not it is affixed to land, if the owner of the structure owns the land on which it is located, unless the structure is unoccupied and held for sale or normally is located at a particular place only temporarily.

What is a rendition?2021-01-21T14:49:38-06:00

A rendition is a statement, listing taxable property, and the name and address of the owner. The statement should also contain the owner’s estimate of the property’s value. The deadline for filing a rendition is on or before April 1st. Be sure to identify your property and attach any documentation that you may have such as closing statements, appraisals or sales of similar properties in your neighborhood.

How is my property valued?2021-01-20T13:40:36-06:00

The district first collects detailed descriptions of each taxable property in the district. It then classifies properties according to a variety of factors such as size, use and construction type. Using comparable sales, income and/or cost data, TCAD appraisers apply generally accepted appraisal techniques to derive a value for your property.

My home was not complete on January 1. How do you appraise it?2021-01-20T13:39:03-06:00

It will be added to the tax roll at the percentage of completion as of January 1st.

What is fair market value?2021-01-21T14:50:34-06:00

Fair market value means the price at which a property would transfer for cash or its equivalent under prevailing market conditions if:  Exposed for sale in the open market with a reasonable time for the seller to find a purchaser. Both the seller and the purchaser know all of the uses and purposes to which the property is adapted and for which it is capable of being used and of the enforceable restrictions on its use. Both the seller and the purchaser seek to maximize their gains and neither is in a position to take advantage of the exigencies of the other.

If I buy a foreclosed property and bring in my closing statement, will my market value be reduced?2021-01-20T13:38:08-06:00

If the foreclosed property was given an adequate exposure to the market, there was no attractive financing associated with it, the closing and repair costs were typical, and the sale is representative of its neighborhood, then it will.  If the price it sold for is not consistent with the marketplace of a property with similar quality and condition, it will not.

Why did my value change?2021-01-20T13:35:51-06:00

Value changes may occur for several reasons. Often sales information may indicate the current appraised value is lower/higher than fair market.  Also, corrections to appraisal records may affect value, such as a change in square footage, a pool not previously accounted for, or a correction of a property characteristic.

Is my house ever depreciated?2021-01-20T13:39:50-06:00

Yes, but the increase in the fair market value may override the age depreciation.

Has someone come out and looked at my property?2021-01-21T14:47:41-06:00

Yes, someone has reviewed your property, but it may not have been this year.

BUSINESS PERSONAL PROPERTY
What types of property must be rendered?2021-01-21T14:55:06-06:00

Business owners are required by State law to render business personal property that is used in a business or used to produce income. This property includes furniture and fixtures, equipment, machinery, computers, inventory held for sale or rental, raw materials, finished goods, and work in progress. You are not required to render intangible personal property (property that can be owned but does not have a physical form) such as cash, accounts receivable, goodwill, application computer software, and similar items. If your organization has previously qualified for an exemption that applies to personal property, for example, a religious or charitable organization exemption, you are not required to render the exempt property.

What is considered heavy equipment?2021-01-21T20:32:39-06:00

Section 23.1241(a)(6) defines “heavy equipment” as “any item of equipment that is self-propelled, self-powered, or pull-type equipment, including farm equipment or a diesel engine, that weighs at least, 500 pounds and is intended to be used for agricultural, construction, industrial, maritime, mining, or forestry uses.” It does not include a motor vehicle required to be titled or registered.

Can excess funds in the escrow account after all property taxes have been paid to the appropriate taxing units be carried over to the next tax year?2021-01-21T20:30:37-06:00

No, excess funds are carried over to the next tax year. Section 23.1242(j) provides that no later than February 15, the tax collector “shall distribute to each appropriate taxing unit … all funds collected under authority of this section and held in escrow ….” In other words, funds deposited during the calendar year are used to pay the heavy equipment dealer’s tax bill on the dealer’s inventory; the tax collector distributes the deposited funds to the taxing units on or before January 31 of the following year and then any remaining in the account by February 15. No funds are carried forward to pay the next year’s tax bill. Current law allows a heavy equipment dealer to apply for a refund of prepaid taxes on a sale that is a fleet transaction (sale of five or more items of heavy equipment in one calendar year). This is the only provision for returning money in an escrow account to a heavy equipment dealer.

Does the requirement that “the owner of the equipment shall state the amount of the unit property tax assigned as a separate line item on an invoice” apply to sales?2021-01-21T20:33:56-06:00

Changes to Section 23.1241(b) include this new sentence: “The owner of the equipment shall state the amount of the unit property tax assigned as a separate line item on an invoice.” The paragraph in which this new sentence is found addresses both sales and lease/rental transactions. This line item should appear on all invoices.

Can previous lease and rental payments be deducted from the cost of a piece of heavy equipment being sold?2021-01-21T20:26:17-06:00

Yes, interest payment can be deducted. Section 23.1241(a)(7) states that the sales price is the “total amount of the lease or rental payments plus any final consideration, excluding interest.” For purposes of the annual declaration used to determine the property tax on the market value of a dealer’s inventory, Section 23.1241(b-1) provides that the sales price of an item of heavy equipment that is sold during the preceding year is considered to be the sum of the sales price for the item plus the total lease and rental payments received for the item in the preceding tax year.

Can I file a rendition late?2021-01-21T14:58:59-06:00

The law provides for an extension of time to file a rendition. In order to receive the extension, you must submit the request to the Travis Central Appraisal District in writing or by email before the April 15th rendition filing deadline. With the receipt of a timely extension request, the rendition filing deadline will be extended to May 15thst.

How do I determine original cost?2021-01-21T14:58:14-06:00

To determine original cost, refer to your accounting records, such as original journal entries and account ledgers. Use original purchase documents, such as invoices or purchase orders to determine the original cost of the asset. Add all costs attributed to getting the asset functioning, such as freight and set-up cost.

Should the cost of warranties in the sales price of heavy equipment be included before applying the unit property tax?2021-01-21T20:29:12-06:00

It depends on how the transaction is written. If the cost of warranties is set up as a separate transaction, then it is not part of the sales price of the heavy equipment. If, however, the cost of warranty is part of the single transaction in the purchase of the heavy equipment, then that cost is included as part of the sales price since it is part of the “money paid or to be paid to a dealer” for the purchase of the heavy equipment.

Is the information I render to TCAD confidential?2021-01-21T14:57:12-06:00

Yes. Information contained in a rendition cannot be disclosed to third parties except in very limited circumstances. In addition, the Texas Property Tax Code specifically provides that any estimate of value you provide is not admissible in proceedings other than a protest to the Appraisal Review Board (ARB) or court proceedings related to penalties for failure to render. The final value we place on your property is public information, but your rendition is not.

Is sales tax included in the sales price of heavy equipment or in the monthly lease or rental payment, as applicable?2021-01-21T20:25:18-06:00

Yes, the sales price includes the sales tax. The sales price of heavy equipment is defined in Section 23.1241(a)(7), Tax Code, as “total amount of money paid or to be paid to a dealer for the purchase of an item of heavy equipment” or “for a lease or rental with an option to purchase, the total amount of the lease or rental payments plus any final consideration, excluding interest.” The sales price includes the sales tax since it is part of the “money paid or to be paid to a dealer” for the purchase of the heavy equipment.

Who must file a rendition?2021-01-21T14:54:25-06:00

Renditions must be filed by both owners of tangible personal property that is used for the production of income and owners of tangible personal property on which an exemption has been cancelled or denied.

If you are a heavy equipment dealer, do you still have to render under Chapter 22?2021-01-21T20:29:53-06:00

Yes, a heavy equipment dealer is required to render all tangible personal property used for the production of income, as required by Section 22.01, Tax Code. See also Section 23.1241(d) that addresses personal property held by a dealer and a dealer who sells predominately to other dealers. The more difficult question here is not whether they are required to render, but whether they are required to render the inventory that is otherwise appraised under Section 23.1241. It seems that chief appraisers have not been requiring those dealers to render their inventory, but have been considering the declaration they are required to file to meet the rendition requirement. Nonetheless, there is nothing specific in the Tax Code which exempts inventory owners from the rendition requirements.

If the same auction house is used by a company to sell all of its used equipment, is this considered a fleet sale?2021-01-21T20:31:20-06:00

If the dealer is selling the used equipment to the auction company and sells five or more items in one calendar year, then the dealer reports those sales as “fleet transactions.” The auction company reports its sales as a dealer selling heavy equipment. In some cases, however, an auction company is not taking ownership of the heavy equipment but is handling the sales transaction for the dealer. So, the final answer will depend on the arrangements between the dealer and the auction company.

Can we treat all attachments sold or rented with heavy equipment as heavy equipment?2021-01-21T20:33:19-06:00

Yes, the heavy equipment and attachments are sold or rented as one transaction with a total sales price. If a dealer sells an attachment as a separate transaction and that attachment does not meet the definition of heavy equipment, then it is not part of the dealer’s heavy equipment inventory. The part may be part of the dealer’s other personal property inventory. Some dealers have parts departments that the dealer renders and the appraisal district appraises as regular inventory under Tax Code Section 23.12.

Is anyone who sells, leases or rents heavy equipment a dealer? Or must the person be “engaged in the business in this state of selling, leasing or renting heavy equipment”?2021-01-21T20:27:18-06:00

Section 23.1241(a)(1) defines “dealer” as a “person engaged in the business in this state of selling, leasing, or renting heavy equipment.” Note: An appraisal district can check to see if the person has a Texas sales tax permit.  A dealer engaged in business in Texas that sells or leases heavy equipment must be permitted to collect state and local sales tax since these are taxable transactions for sales tax purposes.

Is a dealer who does not owe property tax because the dealer was not in business on Jan. 1 prohibited from assigning a unit property tax apply only to sales or to sales, leases and rentals?2021-01-21T20:34:34-06:00

Section 23.1242(g) addresses a dealer who owes no heavy equipment inventory tax for the current year because the dealer was not in business on January 1. The dealer files the monthly statements each month that the dealer is in business. Section 23.1242(g)(2) states that the dealer may not assign a unit property tax to an item of heavy equipment sold by the dealer or remit money with the statement. It appears that the Legislature failed to correct the language in this subsection to reflect changes to include leases or rentals. An exception is Section 23.1242(k) that addresses a person who acquires another dealer’s business and has a contract to pay the selling dealer’s inventory taxes.

How can I get my name and address removed from the TCAD website?2021-01-20T08:06:04-06:00

Texas Tax Code §25.025 permits certain persons to request that the appraisal district restrict from public access any information in the appraisal district records required by §25.02 that could be used to identify their home addresses.

The State Comptroller of Public Accounts prescribes the form on which these confidentiality requests may be made. Copies of the form 50-284 are available in our form library.

Can I use bookeeping records as my rendition?2021-01-21T14:56:27-06:00

Yes. Attach these records to the rendition, sign and date it and then return it to our office. Include asset listings with the date of acquisition and original cost. All assets owned by the business must be rendered.

Do the exclusions for fleet transactions, sales to dealers, and subsequent sales apply to leases and rentals?2021-01-21T20:32:03-06:00

No, these exclusions all deal with sales of heavy equipment; therefore, they do not apply to leases and rentals. Please note that the definition of “subsequent sale” includes: “The term does not include a rental or lease with an unexercised purchase option or without a purchase option.” Leased or rented equipment in which the lessee/renter has exercised a purchase option changes that leased/rented equipment to a sale.

I went out of business during the year. Will my business personal property taxes be prorated?2021-01-21T14:52:38-06:00

No. If you were in business January 1 you owe taxes for the year.

What is the deadline to file a rendition?2021-01-21T14:55:47-06:00

The last day to file your rendition is April 15th. If April 15th falls on a weekend, the rendition deadline is the next business day.

LAND AND AGRICULTURE VALUATIONS
Will I receive an Ag Rollback Tax if I buy a property with Agricultural Valuation, build a house, and stop using the property for agriculture?2021-01-21T20:37:55-06:00

No, the owner will not receive an Ag Rollback Tax if he or she intends to homestead that property (up to 20 acres) and maintains that homestead for 5 years.

How are the production values set for agricultural properties?2021-01-21T20:39:30-06:00

Cropland values are based on a five year average of typical income minus typical expenses using a share lease method. Pastureland values are based on typical income minus typical expenses using a cash lease method.

How many animals do I need on my property to qualify for Agricultural Valuation?2021-01-21T20:37:02-06:00

The minimum requirement for grazing stock is 4 animal units.  A grazing livestock animal unit equals; 1 mature cow; 2 five-hundred pound calves; 6 sheep; 7 goats, or 1 mature horse. If you only had cows, you would need a total of 4 mature ones.  If you only had goats, you would need twenty-eight.   A combination such as 2 cows, and 12 sheep would be four animal units.  Another example is 1 cow, 2 calves, 6 sheep and 7 goats which would be equal to the required number of 4 animal units.

What is an Ag Rollback?2021-01-21T20:41:41-06:00

An Ag Rollback Tax is an additional tax that is imposed when a property owner ceases to use the property for qualified agricultural purposes and changes the use to any other purpose excluding building a house for a personal homestead. The Rollback Tax recoups the tax the owner would have paid if his or her land had been taxed at market value for the years covered in the rollback (generally five years).

What types of activities can qualify for Agricultural Valuation?2021-01-21T20:36:19-06:00

Agricultural use includes but is not limited to the following activities: cultivating the soil, producing crops for human food, animal feed, or planting seed for the production of fibers; floriculture, viticulture, and horticulture; raising or keeping livestock; raising  or keeping exotic animals for the production of human food or of fiber, leather, pelts, or other tangible products having a commercial value; planting cover crops or leaving land idle for the purposes of participating in a governmental program, provided the land is not used for residential purposes or a purpose inconsistent with agricultural use; and planting of cover crops or leaving land idle in conjunction  with normal crop or livestock rotation procedure, and raising or keeping bees for pollination or for the production of human food or other tangible products  having a commercial value.

How many acres do I need to qualify for Agricultural Valuation?2021-01-21T20:40:17-06:00

The number of acres needed depends on the agricultural activity of the property.  For example, the bee keeping requirement is a minimum of 5 acres and cannot exceed 20 acres.  Five acres may be sufficient for intensive farming uses. Travis County has a minimum requirement of 4 animals units for grazing land which would require a minimum of 12 acres on the East side of IH 35 and 20 acres on the West side.  The minimum of 12 acres on the East side of IH 35 and 20 acres on the West side also applies to land used for dryland and irrigated farming and hay production.

What is Wildlife Valuation and how do I qualify?2021-01-21T20:42:35-06:00

In order to receive Wildlife Valuation the property must currently be under Ag Valuation and a new 1-d-1 Ag Application must be timely filed along with a 5 year Wildlife Management Plan provided by the Texas Parks and Wildlife Department.

What is an agricultural exemption?2021-01-20T13:42:16-06:00

An Agriculture Exemption is not an exemption, but rather a special valuation. If a portion or all of a property is deemed eligible to receive an Agricultural Valuation, that property will receive a production value along with its market value.

What type of tax savings would I receive if my property received Agricultural Valuation?2021-01-21T20:38:45-06:00

The tax savings that a property receives depends on the current Market Value of the property and what type of Ag Valuation you are requesting. Native Pasture areas can have a lower Ag valuation than Dry Crop areas and generally both are lower than the market value that the taxes would normally be based on.

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