Reports Of Property Value Instructions Page 10
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28Item 14. Total appraised value lost under the value limi-
To arrive at the prorated loss, take the 334 days that the
tation (Tax Code Chapter 313). Must equal Line 11 on
property is not being taxed divided by 365 days, which
the “Report on Value Lost Because Of Value Limitations
equals 0.915. Then, multiply the total of 10,000 by 0.915,
under Chapter 313 Tax Code. ” Worksheet must be sub-
which equals 9,150. This is the amount that would be lost
mitted for verification purpose. (See worksheet on Page
for the rest of the year on this property. The $850 repre-
12.) School districts may offer a tax credit and an eight-
sents the 31 days that it was taxable property.
year limitation on the appraised value of a property for the
Item 17. Total value lost to historical exemptions and
maintenance and operations portion of the school district
other non-required exemptions. If a structure is desig-
property tax. (Tax Code Chapter 313)
nated as a Recorded Texas Historical Landmark by the
Item 15. Total value lost to partial low-income housing
Texas Historical Commission or is designated as a histori-
exemptions (Tax Code Sec. 11.1825). The low-income
cally or archeologically significant site in need of tax relief
housing exemption was enacted by the Texas Legislature
to encourage its preservation pursuant to an ordinance or
in the 2003 session with an effective date of Jan. 1, 2004.
other law adopted by a taxing unit’s governing body, the
The law created an exemption for qualifying low-income
governing body, by official action, may grant a tax exemp-
housing property owned by certain organizations. The
tion on part or all of the assessed value of the structure
value of the property is reported in Category B. The ex-
and the land necessary to access and use the structure (Tax
emption is a mandatory 50 percent value reduction in
Code Section 11.24). Report in these items any other de-
counties with a population of less than 1.4 million, but is
ductions required to calculate taxable value for the district.
an optional exemption of any amount in the counties with
Do not include any loss for specially appraised proper-
ties (public access airport property, recreational park
a population of 1.4 million or greater. County population
is based on the 2000 census. Please report the exemption
and scenic land, vehicle inventory, residential inventory,
etc.). For these properties, the value arrived at by spe-
here if it is partial and in Item 2 if it is a total exemption.
Note: Continue to report charitable housing exemptions
cial procedures is market value under the Property Tax
Code. Properties (other than agricultural and timber)
granted under the older statutes (Sections 11.181, and
appraised by special procedures should be reported in
11.182, Property Tax Code) in the totally exempt field.
market value on Page 4, Item 34 and on Item 1, at the
Item 16. Total value lost to solar and wind-powered,
special value. Agricultural and timber property qualified
prorations and other required partial exemptions. An
for productivity valuation must be reported at market value
individual who installs or builds a solar or wind-powered
on Item 1, Page 1 and at productivity value on Page 5, Item
energy device primarily for on-site energy production and
35, column III. Report the value lost due to these exemp-
distribution is entitled to a tax exemption on that portion
tions and describe which exemption(s), if any are reported
of his appraised value (Tax Code Section 11.27). A prop-
in this space. (Not deducted for school funding purposes.)
erty may be eligible for taxation for only part of a year
Item 18. Value lost to the 10 percent per year cap on resi-
(proration) because an exemption, other than a residence
homestead exemption, applicable on January 1 of that
dence homesteads. Tax Code Section 23.23 provides that
year, terminated during the year (Tax Code Section 26.10).
the appraised value of a residence homestead for a tax year
Report the value the district lost due to this deduction.
will be limited to the lesser of either its market value or the
(This item is deducted for school funding purposes.)
sum of the market value of any new improvements plus 110
percent per year of the appraised value from the most re-
Example of Prorated Property: The property has a total
cent appraisal. The allowance for an annual 10 percent in-
market value of $25,000 and changed status from taxable
crease is cumulative—that is, 10 percent times the number
to totally exempt. Property was taxable as of Jan. 1 and had
of years since the property was last appraised. Therefore, if
a state-mandated exemption of $15,000. Property became
a homestead increases in value by 20 percent in two years,
totally exempt as of Feb. 1. The proration factor is calcu-
all of the increase can be added to the appraisal roll. This
lated by dividing the number of days in the year that the
should be equal to Line 26 minus Line 27. Report the value
property is exempt by 365. This is how you would report
lost to the 10 percent per year cap on residence homesteads.
the values:
(This item is deducted for school funding purposes.)
Market Value
$ 25,000
Item 19. Subtotal before loss to tax limitation on home-
SM 15,000 Exemption Loss
- $ 15,000
steads of the elderly/disabled. This item should reflect
Total
$ 10,000
the total appraised value in your district after allowable
exemptions have been deducted from the total value
Total
$ 10,000
(Item 3).
Prorated Loss
- $ 9,150
Taxable Value
$
850
Reports of Property Value Instructions
7
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