2012 Appraisal value thread

[JohnHenrySDM]

Originally Posted by G Grasshopper

When we bought our house, in April of 2011, it already was homesteaded by the prior owners. We we told that it would stay homesteaded with us, but we would have to request a transfer in the fall. We did that. I don't believe the taxes went up, and my impression is that the house always kept its homesteaded status.

Interesting. This is the first I've heard of a 'transfer' of Homestead status. Are you certain that's what happened or, maybe, you just applied for it for yourselves?

I cannot find any clear answers to this on the City's pages and I've heard opposite stories from multiple parties. Thanks!

[TexasHorseLady]

The way it works is, if the house you are purchasing has its homestead status for the current year, it keeps it until the end of the year and the taxes for the year you purchased it are based on that (and at closing, the taxes for the year are prorated between seller and buyer). After January 1 of the following year you, if you are living in the home, can and should apply for its homestead status as your home. The application can usually be found on the website of whichever country (not city) you reside in, though you may also be sent copies by your agent and, sometimes, the title company, as a courtesy. Do NOT pay anyone to file for you - it's free, it's a ridiculously easy one-page form, and anyone who offers to do it for you for $45 (the usual fee mentioned) or whatever is trying to scam you.

You are required to be residing in the home on January 1 of the tax year, thus the reason you can't file before January 1 of the year following the closing date.

It's not a transfer, really, but simply that for the duration of the year of the sale the status has already been established (on January 1 of that year) for tax purposes by the seller.

The homestead exemption simply means that this is your primary residence. It offers not just tax benefits but protections that Texas provides for homesteads.

If the home does not already have its homestead exemption because the seller didn't live in it on January 1 of the sales year, you will not be able to get it until after January 1 of the next year.

[JohnHenrySDM]

Thank you for the great information THL. It's very helpful, and valuable.

One question remaining for me is the following. Let's say for example Owner A has a home and has the Homestead exemption. The market value of A's home increased 15% a year, every year, for the past five years. But because of the Homestead exemption the yearly increase in appraised taxable value was capped at 10%. After five years there is a very large discrepancy between appraised value and market value. Now Owner A sells home to Owner B. Does the county use that change of hands to correct that discrepancy and bring the appraisal up to market level?