Photo courtesy of Fox 4 News

FORT WORTH, Texas – The Tarrant Appraisal District (TAD) office has seen a surge in activity as property owners seek clarity on a recently implemented state law requiring counties to audit homestead exemptions every five years.

This new legislation, enacted in 2023, has prompted questions and concerns among homeowners. Last week, FOX 4 highlighted the relatively unknown law, drawing attention to its implications for property owners in Texas.

Understanding the Homestead Exemption

In Texas, the homestead exemption offers homeowners a tax break by allowing their property taxes to be calculated at a rate lower than the appraised or market value. Previously, most homeowners could “set it and forget it” after claiming the exemption. However, the new law mandates appraisal districts across the state to verify eligibility for the exemption at least once every five years.

According to Tarrant County Chief Appraiser Joe Don Bobbitt, the measure aims to ensure compliance but has also identified some ineligible exemptions.

“Right now, about 30,000 cases have been flagged for review,” Bobbitt explained. “Typically, only about 0.75% of these turn out to be erroneous. While that doesn’t sound like much, it can amount to millions of dollars in lost revenue for local entities.”

How Tarrant County is Handling the Change

To minimize the burden on homeowners, TAD is leveraging an external contractor to pinpoint questionable exemptions instead of requiring all exemption holders to reapply.

“Much of the confusion stems from mixed messaging,” Bobbitt said. “The law does require validation every five years, but in Tarrant County, we’re striving to make the process as simple as possible. Homeowners will only need to reapply if there’s a specific reason to question their eligibility.”

Property Owners React

For some homeowners, the process has been perplexing. David Lube, a Tarrant County resident, visited TAD to confirm his exemption status.

“It’s confusing, but I’ve got my little letter, so I’m okay,” Lube said.

Homeowners receiving similar letters may only need to validate their residency at the exempted property. Failure to respond to two mailings could result in the exemption being revoked.

According to Bobbitt, TAD utilizes various tools, such as voter registration, vehicle registration, and mailing address records, to verify residency. “If discrepancies arise, such as evidence someone resides elsewhere, we conduct further research to confirm eligibility,” he said.

How to Verify Your Homestead Exemption

Property owners can check the status of their homestead exemption by visiting their county appraisal district’s website. A comprehensive directory of appraisal district websites is available at the Texas Comptroller’s office: County Appraisal District Directory.

A simple property search will show the exemptions currently applied to your property. If your exemption is revoked, you may have to pay taxes based on the higher assessed value. However, eligible homeowners can contact their county’s appraisal district to apply for a refund of the difference.