Texas Homeowners May Qualify for Property Tax Relief After Disaster Damage

Texas homeowners whose properties are damaged by a qualifying disaster may be eligible for temporary property-tax relief.

Under Texas Tax Code Section 11.35, qualified property that is at least 15% damaged by a disaster in an area included in a governor-declared disaster declaration can receive a temporary exemption from a portion of its appraised value.

The program can provide financial relief to homeowners and other qualifying property owners while they work to repair properties damaged by flooding, severe storms, wildfires and other declared disasters.

What This Means for Texas Homeowners

A property does not necessarily need to be a total loss to qualify.

The Texas Comptroller uses four damage-assessment levels:

The exemption is based on the property’s appraised value and the amount of time remaining in the tax year after the disaster declaration.

Who May Qualify?

The temporary disaster exemption applies to qualifying property located in an area that has been declared a disaster by the governor.

Qualified property can include:

• Improvements to real property
• Certain manufactured homes
• Tangible personal property used for income production

The property must have sustained at least 15% damage as determined by the chief appraiser.

This means homeowners should not assume that simply living in a county affected by a storm automatically qualifies them for a tax exemption. The property must meet the statutory requirements and the damage must be evaluated.

How the Damage Is Determined

The county chief appraiser determines whether the property qualifies and assigns a damage-assessment rating.

The chief appraiser may use information from sources such as:

• County emergency-management authorities
• FEMA
• Other appropriate government or reliable sources
• Documentation concerning the property’s physical damage

The appraisal district then determines the applicable damage level and exemption.

Important Application Deadline

One of the most important details for homeowners is the filing deadline.

Under the current Texas Comptroller guidance, property owners must apply for the temporary disaster exemption no later than 105 days after the governor declares the area a disaster area.

This is different from the 180-day deadline stated in the original article.

Homeowners should therefore check the date of the applicable disaster declaration rather than waiting until repairs are completed.

What Documentation May Help?

Homeowners should keep documentation showing the extent of the damage.

Useful information may include:

• Photographs and videos
• Insurance claims or adjuster reports
• Contractor estimates
• Repair invoices
• FEMA documentation
• Fire or emergency-management reports
• Other evidence showing the property’s condition after the disaster

The chief appraiser has discretion regarding the information used to determine the property’s damage level.

Example: Flood-Damaged Home

Consider a homeowner whose property suffered significant flooding during a governor-declared disaster.

If the chief appraiser determines that the property suffered 30% to less than 60% damage, the property could receive a Level II temporary exemption equal to 30% of the applicable appraised value, subject to the statutory calculation for the portion of the tax year remaining after the disaster declaration.

The relief therefore does not necessarily mean the homeowner’s entire annual property-tax bill disappears.

Instead, the exemption reduces the taxable value according to the applicable damage rating and statutory calculation.

Wildfire and Other Disaster Damage

The program can also apply to qualifying properties damaged by wildfires and other disasters when the property is located within a governor-declared disaster area.

The Texas Comptroller has previously published disaster declarations involving wildfires, flooding, severe storms and other events where Section 11.35 relief could apply.

Homeowners should verify that their county is included in the applicable disaster declaration before applying.

Another Type of Relief: Homes Destroyed by Fire

Texas also has a separate provision for certain residence-homestead improvements that are completely destroyed by fire.

Under Tax Code Section 11.351, an eligible residence-homestead improvement may receive an exemption for the tax year in which the fire occurred if the statutory requirements are satisfied.

The application deadline for this separate fire-damage exemption is 180 days after the date of the fire.

This is likely one reason the original article may have confused the 180-day deadline with the 105-day deadline for the broader disaster-damage exemption.

What Homeowners Should Do

If your property has been damaged by a qualifying disaster:

1. Check the governor’s disaster declaration.
Confirm that your property is located within the declared disaster area.

2. Document the damage.
Take photographs and retain insurance, contractor and emergency-management documentation.

3. Contact your county appraisal district.
Ask whether the property qualifies for the temporary disaster exemption.

4. Watch the deadline.
The general disaster-damage exemption application must be submitted within 105 days after the governor’s disaster declaration.

5. Ask about other available relief.
Depending on the circumstances, homeowners may have additional options involving tax payment arrangements or other disaster assistance.

What This Means for Homeowners and Community Associations

For HOA and community-management professionals, understanding disaster-related property-tax relief can also be useful when communicating with homeowners after major storms, floods or wildfires.

Community associations can help residents locate official resources and understand where to obtain information, while avoiding giving individual tax or legal advice.

Homeowners should work directly with their county appraisal district or qualified tax professional when determining whether their individual property qualifies.

Final Takeaway

Texas already provides a statutory mechanism for property-tax relief following qualifying disasters.

Under Tax Code Section 11.35, property that is at least 15% damaged and located in a governor-declared disaster area may qualify for a temporary exemption based on the severity of the damage. The exemption can range from 15% to 100% depending on the damage assessment.

The most important thing for affected homeowners is to document the damage and pay attention to the application deadline.

For the general disaster exemption, the current Texas Comptroller guidance specifies a 105-day application deadline, so homeowners should not wait until the repair process is finished before checking their eligibility.