PRESS RELEASE – HAYS CAD DISASTER EXEMPTION

If Your Property Sustained Damage During the February 2021 Winter Storm Uri You May Qualify for an Exemption

In an area declared a disaster area by the Governor, Tax Code Section 11.35 allows a qualified property that is at least 15 percent damaged by a disaster to receive a temporary exemption of a portion of the appraised value of the property. A property owner must apply for the temporary exemption and the deadline for application is 105 days after the governor declares a disaster area.  As it applies to Winter Storm Uri, Governor Abbott declared the entire state of Texas a disaster area on February 12, 2021 so this exemption applies to all counties in Texas.  The deadline for filing the application for exemption is May 28, 2021.

The exemption applies only to qualified property. Qualified property includes:

  • Tangible business personal property used for income production if the owner filed a 2021 rendition;
  • An improvement to real property, which would include residential buildings (homes), commercial buildings (businesses), industrial buildings (manufacturing), multi-family buildings (apartments), and other real property buildings; and
  • certain manufactured homes used as a dwelling.

The appraisal district determines if the property qualifies for the temporary exemption and assigns a damage assessment rating of Level I, II, III or IV based upon available information. The district may rely on information from a county emergency management authority, the Federal Emergency Management Agency (FEMA) or other appropriate sources like insurance adjusters or repair estimates when making this determination.

Level Damage Assessment Damage Description Exemption Percentage
I 15% < 30% Minimal, may continue to be used as intended 15%
II 30% < 60% Nonstructural damage and waterline <18″ above floor if flooded. 30%
III 60% < 100% Significant structural damage and waterline 18″+ above floor if flooded 60%
IV 100% Total loss; repair is not feasible 100%

The amount of the exemption is determined by multiplying the building (note: this is the improvement value only, land is not qualified property and land value is not included in the calculations) or personal property value, as applicable, by the exemption percentage based on the damage assessment level and is then multiplied by a proration factor (the number of days remaining in the tax year after the date the governor declares the disaster is divided by 365). The proration factor for this disaster is 0.88 (322/365 = 0.88).

The appraisal district must send written notice of the approval, modification, or denial of the application to the applicant. The temporary disaster area exemption expires on Jan. 1 of the first tax year in which the property is reappraised.

The deadline for filing the 2021 Temporary Exemption Property Damaged by Disaster application is May 28, 2021. Click here for a copy of the application, form 50-312. You can mail your application to the HAYS CENTRAL APPRAISAL DISTRICT or send via email to [email protected].