Property Tax Issues in Disaster Areas
Reappraisal of Property in Disaster Areas
Texas Governor Rick Perry has declared a state of disaster in all Texas counties. In disaster areas local governments can request the appraisal district that serves it to reappraise all property damaged in the disaster at its market value immediately after the disaster. Governor Perry’s disaster proclamation was reissued on Sept. 1 (http://governor.state.tx.us/news/proclamation/16543/).
When requested by local taxing entities the appraisal district is required, under Property Tax Code Section 23.02, to complete the reappraisal as soon as practicable. The appraisal district must include on the appraisal record the date of the disaster; the appraised value of the property after the disaster; if the reappraisal was not authorized by all taxing units in which the property is located, an indication of the taxing units to which the reappraisal applies.
While the appraisal district must perform the reappraisal if requested, the local taxing authority requesting the reappraisal must pay all the costs involved. If more than one taxing unit requests the reappraisal, all taxing units requesting the reappraisal will share in the costs based on the proportion of taxes imposed in the affected locality in the preceding year.
In addition, the taxing unit in which the damaged reappraised property is located must prorate taxes on the property for that year. The local taxing entity will assess taxes prior to the date the disaster occurred based on the market value as of Jan. 1, 2011. Beginning on the date of the disaster and for the remainder of the year, the taxing authority will apply its tax rate to the reappraised market value of the property.
Comptroller Susan Combs has directed her Property Tax Assistance Division to assist local taxing entities and county appraisal districts in affected areas with any questions regarding this reappraisal process. Local officials desiring information on reappraising property in their jurisdiction should call (800) 252-9121, press 2, then press 1 for more information.
Installment Payments on Some Property Damaged in a Disaster Area
Homeowners and some small businesses whose property is damaged in a disaster and are located in a designated disaster area also may pay their taxes in four installments. The property owner must pay at least one-fourth of the taxes before the Feb. 1 delinquency date. The remaining payments are due before April 1, June 1 and Aug. 1, without any penalty or interest. If they miss an installment payment, they will face a 6 percent penalty and also pay interest at 1 percent for each month of delinquency. The property owner must give written notice with the first payment that they are paying taxes in installments. Installment payments apply to all taxing units on the tax bill.