Property Tax Exemptions

Table of Content

• Tuesday, January 29, 2008
• How Home Equity Borrowing in Texas has Forever Changed
• Fiscal Notes
• Property Tax Exemptions
• Other Exempt Purchases – Sales and Use Tax Exemption Certificate Required
• You can only take out a home equity loan on your primary residence.
• Ag/Timber Exemption Certificates for Sales Tax

So, while we can pledge to give your case our best effort, we can’t guarantee a specific outcome. Just because you’ve done your part and paid your mortgage on time doesn’t mean the bank has the right to take advantage of you. If you aren't sure whether your Home Equity Loan contains errors, read our 5 Step Guide to Determine if Your Loan is Illegal below. If you aren't sure if your loan contains errors, take advantage of the resources on this page to discover for yourself if your loan is one of the 87% that contains errors. When violations are brought to the attention of the bank, the law requires they "cure" or fix all violations. Legally, they are given fair opportunity to "make things right" with minimal consequence to them.

The first step in determining if you were the victim of an illegal loan is to locate your loan documents. What you are looking for is the set of documents that you received upon signing for your loan. The document set may be in a folder or envelope with a title company's logo on it. A self-propelled motor vehicle designed or adapted to primarily transport people or agricultural products is not a farm machine.

Tuesday, January 29, 2008

This issue was addressed in November 2007, when laws governing home equity loans and agriculture exemptions changed. A homeowner is now unable to qualify for an agriculture exemption if the land is secured by a home equity loan. The loophole that was once available was not closed, requiring homeowners to make a choice; live with the ag exemption and reap its benefits, or do a home equity loan and waive any rights to the Ag exemption.

Each heir property owner who occupies the property as a principal residence, other than the applicant, must provide an affidavit that authorizes the submission of the application. The Texas A6 12-Day Letter is a loan disclosure that is part of the initial Loan Disclosure Package that is sent by the lender. The letter states that all people on the note (and their spouses even if they’re not on the loan) must sign and date the letter in order to start the 12-day clock.

How Home Equity Borrowing in Texas has Forever Changed

All blanket exemption certificates given to retailers for qualifying ag/timber items must be updated every four years with your current Ag/Timber Number expiration date. Retailers are not required to accept an exemption certificate. If they choose not to accept an exemption certificate from you on a qualifying item, you must pay the tax and then request a refund of the tax paid from the Comptroller. Ag/Timber Exemption Certificates for Sales and Use Tax Exemption Certificates When you purchase an item that is not exempt from tax by law, you must give the seller an exemption certificate to purchase the item tax free. The type of exemption certificate depends on the type of item you are purchasing and how it will be used. Self-propelled motor vehicles specifically designed or adapted to transport timber or timber products, including those designed to transport cargo and adapted with a cargo-loading device.

The Acknowledgement of Fair Market Value is a required document that provides the fair market value as determined by the lender on the day the loan was given. Click here to see sample documents with missing signatures. The guide is designed for Home Equity Loans that originated prior to 2018. It will show you step-by-step how to examine your documents to determine whether your loan has errors. Plus, if your loan does contain errors, it will show you how to demand the bank fix the errors - without an attorney!

Fiscal Notes

Even though the aforementioned example isn’t a Texas A6 home equity loan, lenders will often take the most conservative approach and require the A6 designation. Do not let a lender’s ignorance determine your financial future. What’s “interesting” is that a Texas home equity A6 designation can be applied even when the homeowners isn’t getting cash out of the home. Texas A6 Home Equity loans do not allow Power of Attorney at closing.

Everyone on the note (and spouses if they’re not on the loan) must be present at closing and sign for themselves. Congratulations, you are among the less than 13% of borrowers who have a loan with no violations! You’ll have the peace of mind knowing you weren’t taken advantage of. Expanding the list of lenders authorized to make Texas home equity loans.

File and Pay

Tax Code Section 11.13 requires counties that collect farm-to-market or flood control taxes to provide a $3,000 residence homestead exemption. Some animals and their feed do not qualify for the ag/timber exemption, but do qualify for the standard sales and use tax exemption. You must give the retailer a properly completed Form , Texas Sales and Use Tax Exemption Certificate when making these purchases. The certificate must specifically explain the exempt purpose for which the animal or feed will be used. If you are a farmer, rancher or timber producer engaged in one of the activities listed below, you qualify for tax exemption on the purchase of certain items used to produce your agricultural and timber products for sale.

For example, if three family members operate a farm, one member can apply for an Ag/Timber Number for the farm and all three family members can use it when buying qualifying items. Or, a corporate agricultural or timber operation with multiple employees can obtain one card and number that can be used by all authorized employees for qualifying purchases. The loan must be closed only at the permanent office of a lender, title company, or attorney. Knowing Texas home equity laws can help you plan how and when you use your home’s equity. These laws apply to home equity loans, home equity lines of credit, and cash-out refinances.

Property Tax Exemptions

Charitable Organizations and Businesses Texas law allows for a number of exemptions for charitable organizations and businesses. Please refer to the Comptroller's publication Texas Property Tax Exemptions for more information about these exemptions. Most of these exemptions have specific application forms that can be found through the exemption forms link in the box above.

Disabled Veterans and Surviving Spouses of Disabled VeteransTax Code Section 11.22 provides a partial exemption for any property owned by a disabled veteran. The amount of the exemption varies depending on the disabled veteran's disability rating. The surviving spouse who remains unmarried and surviving children of a disabled veteran may also qualify for an exemption under this section. Previously, only agricultural homesteads (as defined in section 23.51 of Texas Tax Code) that were primarily used for milk production were allowed to take out home equity loans, but now all agricultural properties can. With so many agricultural properties in Texas, this is a huge opportunity for lenders.