News & Insights

Texas Property Owners May Be Eligible for Temporary Disaster-Related Relief on Property Taxes

Tax Development May 10, 2021

Texas Property Owners May Be Eligible for Temporary Disaster-Related Relief on Property Taxes

As commercial property tax owners in Texas were beginning the road to recovery from the pandemic, many were dealt another challenge by February’s winter storm, suffering significant damage to their buildings. A tax exemption for property that is damaged by a disaster is allowed in an area that receives a disaster declaration from the governor, as per Section 11.35 of the state tax code. Governor Greg Abbott issued a disaster declaration for all 254 counties on February 12, 2021 in advance of severe winter weather. To offer relief to property owners, jurisdictions across the state of Texas are encouraging qualifying taxpayers to apply for a temporary exemption related to the winter storm by May 28, 2021.

Tax Code Section 11.35 allows for a chief appraiser to determine if a property qualifies for a temporary exemption based on a damage assessment rating of Level I, II, III, or IV. To qualify, a property must have suffered damage that totals a minimum of 15% of the property’s improvement value. The amount of the exemption is determined by multiplying the property value, after applying the assessment rating, to a fraction comprised of the days remaining in the tax year after the governor has declared a disaster divided by 365.

The temporary exemption lasts until the property is reappraised. Qualified properties include commercial buildings, industrial buildings, multifamily buildings, and other real property buildings that sustained damage equal to at least 15% of the appraised value of the improvements.  

Property owners must complete applications and provide documents by mail, office drop box, or online, depending on each assessor’s office. Ryan’s local property tax experts are available to discuss the best way to proceed with applying for this exemption and navigating through the tax minimization process for recovering in the post-pandemic economy.

TECHNICAL INFORMATION CONTACTS:

Zachary Fleming
Principal
Ryan
210.377.3200
zachary.fleming@ryan.com

Scott Retzloff
Principal
Ryan
210.377.3200
scott.retzloff@ryan.com

Jeff Tuthill
Principal
Ryan
972.934.0022
jeff.tuthill@ryan.com

The material presented in this communication is intended to provide general information only and should solely be seen as broad guidance and not directed to the particular facts or circumstances of any individual who may read this publication. No liability is accepted for acts or omissions taken in reliance upon the content of this piece. Before taking (or not taking) any action, readers should seek professional advice specific to their situation from Ryan, LLC or other tax professionals. For additional information about this topic, please contact us at info@ryan.com.