Montgomerycountyexemptionanalysis

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Report Prepared for Montgomery County Commissioners Court February 14, 2017

Tammy McRae, Tax Assessor-Collector


◦ Appraise Property & Grant Exemptions ◦ Certify Values & Exemptions to Taxing Units

◦ Adopt Optional Exemptions ◦ Adopt Tax Rates

◦ Assessment –  

Calculate Tax Rates Apply Adopted Tax Rate to Certified Taxable Value

Prepare & Send Tax Statements

◦ Collection –

 Collect Taxes


Residence Homestead of 100% or Totally Disabled Veteran – 100% exemption for qualifying individuals ◦ Texas Property Tax Code, Sec. 11.131

Disabled Veterans – Tiered exemption on any property based on disability rating from Veteran’s Administration ◦ Texas Property Tax Code, Sec. 11.22 Disability Rating of: Exemption up to:

at least:

but less than:

$5,000

10%

30%

$7,500

30%

50%

$10,000

50%

70%

$12,000

70% and over


Texas Property Tax Code, Sec. 11.13(n) In addition to any other exemptions provided by this section, an individual is entitled to an exemption from taxation by a taxing unit of a percentage of the appraised value of his residence

homestead if the exemption is adopted by the governing body of the taxing unit before July 1 in the manner provided by law for official action by the body. If the percentage set by the

taxing unit produces an exemption in a tax year of less than $5,000 when applied to a particular residence homestead, the individual is entitled to an exemption of $5,000 of the

appraised value. The percentage adopted by the taxing unit may not exceed 20 percent.


– up to 20% or $5,000 (whichever is greater)

◦ Texas Property Tax Code, Sec. 11.13(n)

– Minimum $3,000, No limit

◦ Texas Property Tax Code, Sec. 11.13(d)(e)  Surviving Spouse – Minimum $3,000

Texas Property Tax Code, Sec. 11.13(q)

– Minimum $3,000, No limit

◦ Texas Property Tax Code, Sec. 11.13(d)(e)  Surviving Spouse – Minimum $3,000

Texas Property Tax Code, Sec. 11.13(q)




Source: Texas Association of Counties Data: Texas State Comptroller - Based on Tax Year 2015 (2016 Data not available)


To receive an exemption, a person must file an exemption application form with the chief appraiser. â—Ś

Texas Property Tax Code, Sec. 11.43


Montgomery County Tax Assessor-Collector collects for 79 taxing jurisdictions

24 jurisdictions offer a homestead exemption ◦ All ISD’s offer statutory homestead exemption



= 13,435 Value Reduction $62.70 Tax Reduction = 26,869 Value Reduction $125.40 Tax Reduction = 53,737 Value Reduction $250.80 Tax Reduction Estimates based on 2016 Montgomery County tax rate & average home value of $268,685


Exemption %

Value Loss FY 2017

Revenue Loss (.4667/$100)

$(1,533,103,085)

$(7,154,992.10)

$(2,988,451,410)

$(13,947,102.73)

$(5,944,653,902)

$(27,743,699.76)

Figures reflect 65 and over exemption currently offered


= $256.70 Tax Reduction = $291.70 Tax Reduction = $466.70 Tax Reduction Estimates based on 2016 Montgomery County tax rate & average home value of $268,685


2016 Current Value Loss with the $35,000 Exemption

Exemption Adjusted Value Amount

Value Loss FY 2017

Revenue Loss (.4667/$100)

$1,214,329,888

$55,000

$1,813,396,924

$(599,067,036)

$(2,795,845.86)

$1,214,329,888

$62,500

$2,040,071,819

$(825,741,931)

$(3,853,737.59)

$1,214,329,888

$100,000

$3,105,483,623

$(1,891,153,735)

$(8,826,014.48)


2017 Preliminary values for Montgomery County reflect an increase of $2,751,652,521 to date. The increase is a result of reappraisals and new improvements. The County can expect to generate $12,841,962 in additional revenue using the current tax rate of $0.4667/$100 should the increase in value remain through the July 25th certification date.


Exemptions are required to be adopted by July 1; however, in order to be included in preliminary

values, the Appraisal District must have information by April 1. â—Ś

Texas Property Tax Code, Sec. 11.13(n)



A copy of this presentation will be available on the Montgomery County home page &

the Tax Office website. www.mctx.org www.mctx.org/tax


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