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Title 1. Property Tax Code
Subtitle C. Taxable Property and Exemptions

Chapter 11. Taxable Property and Exemptions

Subchapter B. Exemptions

Sec. 11.11. Public Property.
Sec. 11.111. Public Property Used to Provide Transitional Housing for Indigent Persons.
Sec. 11.12. Federal Exemptions.
Sec. 11.13. Residence Homestead.
Sec. 11.14. Tangible Personal Property Not Producing Income.
Sec. 11.142. Repealed in 2003.
Sec. 11.145. Income Producing Tangible Personal Property Having Value Less than $500.
Sec. 11.146. Mineral Interest Having Value of Less than $500.
Sec. 11.15. Family Supplies.
Sec. 11.16. Farm Products.
Sec. 11.161. Implements of Husbandry.
Sec. 11.17. Cemeteries.
Sec. 11.18. Charitable Organizations.
Sec. 11.1801. Charity Care and Community Benefits Requirements for Charitable Hospital.
Sec. 11.181. Charitable Organizations Improving Property for Low-Income Housing.
Sec. 11.182. Community Housing Development Organizations Improving Property for Low-Income and Moderate-Income Housing: Property Previously Exempt.
Sec. 11.1825. Organizations Constructing or Rehabilitating Low-Income Housing: Property Not Previously Exempt.
Sec. 11.1826. Monitoring of Compliance With Low-Income and Moderate-Income Housing Exemptions.
Sec. 11.183. Association Providing Assistance to Ambulatory Health Care Centers.
Sec. 11.184. Organizations Engaged Primarily in Performing Charitable Functions.
Sec. 11.185. Colonia Model Subdivision Program.
Sec. 11.19. Youth Spiritual, Mental, and Physical Development Associations.
Sec. 11.20. Religious Organizations.
Sec. 11.201. Additional Tax on Sale of Certain Religious Organization Property.
Sec. 11.21. Schools.
Sec. 11.22. Disabled Veterans.
Sec. 11.23. Miscellaneous Exemptions.
Sec. 11.24. Historic Sites.
Sec. 11.25. Marine Cargo Containers Used Exclusively in International Commerce.
Sec. 11.251. Tangible Personal Property Exempt.
Sec. 11.252. Motor Vehicles Leased for Personal Use.
Sec. 11.26. Limitation of School Tax on Homesteads of Elderly or Disabled.
Sec. 11.261. Limitation of County, Municipal, or Junior College District Tax on Homesteads of Disabled and Elderly.
Sec. 11.27. Solar and Wind-Powered Energy Devices.
Sec. 11.271. Offshore Drilling Equipment Not in Use.
Sec. 11.28. Property Exempted from City Taxation by Agreement.
Sec. 11.29. Intracoastal Waterway Dredge Disposal Site.
Sec. 11.30. Nonprofit Water Supply or Wastewater Service Corporation.
Sec. 11.31. Pollution Control Property.
Sec. 11.32. Certain Water Conservation Initiatives.
Sec. 11.33. Raw Cocoa and Green Coffee Held in Harris County.

[Sections 11.34 to 11.40 reserved for expansion]

Sec. 11.13. Residence Homestead.

(a) A family or single adult is entitled to an exemption from taxation for the county purposes authorized in Article VIII, Section 1-a, of the Texas Constitution of $3,000 of the assessed value of his residence homestead.

(b) An adult is entitled to exemption from taxation by a school district of $15,000 of the appraised value of the adult's residence homestead, except that $10,000 of the exemption does not apply to an entity operating under former Chapter 17, 18, 25, 26, 27, or 28, Education Code, as those chapters existed on May 1, 1995, as permitted by Section 11.301, Education Code.

(c) In addition to the exemption provided by Subsection (b) of this section, an adult who is disabled or is 65 or older is entitled to an exemption from taxation by a school district of $10,000 of the appraised value of his residence homestead.

(d) In addition to the exemptions provided by Subsections (b) and (c) of this section, an individual who is disabled or is 65 or older is entitled to an exemption from taxation by a taxing unit of a portion (the amount of which is fixed as provided by Subsection (e) of this section) of the appraised value of his residence homestead if the exemption is adopted either:

(1) by the governing body of the taxing unit; or

(2) by a favorable vote of a majority of the qualified voters of the taxing unit at an election called by the governing body of the taxing unit, and the governing body shall call the election on the petition of at least 20 percent of the number of qualified voters who voted in the preceding election of the taxing unit.

(e) The amount of an exemption adopted as provided by Subsection (d) of this section is $3,000 of the appraised value of the residence homestead unless a larger amount is specified by:

(1) the governing body authorizing the exemption if the exemption is authorized as provided by Subdivision (1) of Subsection (d) of this section; or

(2) the petition for the election if the exemption is authorized as provided by Subdivision (2) of Subsection (d) of this section.

(f) Once authorized, an exemption adopted as provided by Subsection (d) of this section may be repealed or decreased or increased in amount by the governing body of the taxing unit or by the procedure authorized by Subdivision (2) of Subsection (d) of this section. In the case of a decrease, the amount of the exemption may not be reduced to less than $3,000 of the market value.

(g) If the residence homestead exemption provided by Subsection (d) of this section is adopted by a county that levies a tax for the county purposes authorized by Article VIII, Section 1-a, of the Texas Constitution, the residence homestead exemptions provided by Subsections (a) and (d) of this section may not be aggregated for the county tax purposes. An individual who is eligible for both exemptions is entitled to take only the exemption authorized as provided by Subsection (d) of this section for purposes of that county tax.

(h) Joint, community, or successive owners may not each receive the same exemption provided by or pursuant to this section for the same residence homestead in the same year. An eligible disabled person who is 65 or older may not receive both a disabled and an elderly residence homestead exemption but may choose either. A person may not receive an exemption under this section for more than one residence homestead in the same year.

(i) The assessor and collector for a taxing unit may disregard the exemptions authorized by Subsection (b), (c), (d), or (n) of this section and assess and collect a tax pledged for payment of debt without deducting the amount of the exemption if:

(1) prior to adoption of the exemption, the unit pledged the taxes for the payment of a debt; and

(2) granting the exemption would impair the obligation of the contract creating the debt.

(j) For purposes of this section:

(1) "Residence homestead" means a structure (including a mobile home) or a separately secured and occupied portion of a structure (together with the land, not to exceed 20 acres, and improvements used in the residential occupancy of the structure, if the structure and the land and improvements have identical ownership) that:

(A) is owned by one or more individuals, either directly or through a beneficial interest in a qualifying trust;

(B) is designed or adapted for human residence;

(C) is used as a residence; and

(D) is occupied as his principal residence by an owner or, for property owned through a beneficial interest in a qualifying trust, by a trustor of the trust who qualifies for the exemption.

(2) "Trustor" means a person who transfers an interest in residential property to a qualifying trust, whether by deed or by will, or the person's spouse.

(3) "Qualifying trust" means a trust:

(A) in which the agreement or will creating the trust provides that the trustor of the trust has the right to use and occupy as the trustor's principal residence residential property rent free and without charge except for taxes and other costs and expenses specified in the instrument:

(i) for life;

(ii) for the lesser of life or a term of years; or

(iii) until the date the trust is revoked or terminated by an instrument that describes the property with sufficient certainty to identify it and is recorded in the real property records of the county in which the property is located; and

(B) that acquires the property in an instrument of title that:

(i) describes the property with sufficient certainty to identify it and the interest acquired;

(ii) is recorded in the real property records of the county in which the property is located; and

(iii) is executed by the trustor or the personal representative of the trustor.

(k) A qualified residential structure does not lose its character as a residence homestead if a portion of the structure is rented to another or is used primarily for other purposes that are incompatible with the owner's residential use of the structure. However, the amount of any residence homestead exemption does not apply to the value of that portion of the structure that is used primarily for purposes that are incompatible with the owner's residential use.

(l) A qualified residential structure does not lose its character as a residence homestead when the owner who qualifies for the exemption temporarily stops occupying it as a principal residence if that owner does not establish a different principal residence and the absence is:

(1) for a period of less than two years and the owner intends to return and occupy the structure as the owner's principal residence; or

(2) caused by the owner's:

(A) military service outside of the United States as a member of the armed forces of the United States or of this state; or

(B) residency in a facility that provides services related to health, infirmity, or aging.

(m) In this section:

(1) "Disabled" means under a disability for purposes of payment of disability insurance benefits under Federal Old-Age, Survivors, and Disability Insurance.

(2) "School district" means a political subdivision organized to provide general elementary and secondary public education. "School district" does not include a junior college district or a political subdivision organized to provide special education services.

(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.

(o) For purposes of this section, a residence homestead also may consist of an interest in real property created through ownership of stock in a corporation incorporated under the Cooperative Association Act (Article 1396-50.01, Vernon's Texas Civil Statutes) to provide dwelling places to its stockholders if:

(1) the interests of the stockholders of the corporation are appraised separately as provided by Section 23.19 of this code in the tax year to which the exemption applies;

(2) ownership of the stock entitles the owner to occupy a dwelling place owned by the corporation;

(3) the dwelling place is a structure or a separately secured and occupied portion of a structure; and

(4) the dwelling place is occupied as his principal residence by a stockholder who qualifies for the exemption.

(p) Exemption under this section for a homestead described by Subsection (o) of this section extends only to the dwelling place occupied as a residence homestead and to a portion of the total common area used in the residential occupancy that is equal to the percentage of the total amount of the stock issued by the corporation that is owned by the homestead claimant. The size of a residence homestead under Subsection (o) of this section, including any relevant portion of common area, may not exceed 20 acres.

(q) The surviving spouse of an individual who qualifies for an exemption under Subsection (d) for the residence homestead of a person 65 or older is entitled to an exemption for the same property from the same taxing unit in an amount equal to that of the exemption for which the deceased spouse qualified if:

(1) the deceased spouse died in a year in which the deceased spouse qualified for the exemption;

(2) the surviving spouse was 55 or older when the deceased spouse died; and

(3) the property was the residence homestead of the surviving spouse when the deceased spouse died and remains the residence homestead of the surviving spouse.

(r) An individual who receives an exemption under Subsection (d) is not entitled to an exemption under Subsection (q).

(s) Expired January 1, 1999.

Amended by 1981 Tex. Laws (1st C.S.), p. 127, ch. 13, Sec. 31; amended by 1983 Tex. Laws, p. 4822, ch. 851, Sec. 6; amended by 1985 Tex. Laws, p. 2452, ch. 301, Sec. 1; amended by 1987 Tex. Laws, ch. 547, Sec. 1; amended by 1991 Tex. Laws, p. 413, ch. 20, Secs. 18 and 19, and p. 1481, ch. 391, Sec. 14; amended by 1993 Tex. Laws, p. 1526, ch. 347, Sec. 4.08 and by p. 3364, ch. 854, Sec. 1; amended by 1995 Tex. Laws, p. 844, ch. 76, Sec. 15.01, and p. 3460, ch. 610, Sec. 1; amended by 1997 Tex. Laws, p. 1062, ch. 194, Sec. 1; p. 2067, ch. 592, Sec. 2.01; p. 3899, ch. 1039, Sec. 6; p. 4030, ch. 1059, Sec. 2; and p. 4094, ch. 1071, Sec. 28; amended by 1999 Tex. Laws, p. 4187, ch. 1199, Sec. 1; amended by 1999 Tex. Laws, p. 5097, ch. 1481, Sec. 1; amended by HB 1223, 78th Tex. Leg., 2003, effective June 18, 2003.

Cross References:

Annual application not required, see Sec. 11.43(c).
Late application for homestead exemption, see Sec. 11.431.
Partial ownership, see Sec. 11.41.
School tax ceiling on homesteads of elderly, see Sec. 11.26.
Abatement of delinquent tax suits on homesteads of elderly, see Sec. 33.06.
Installment payments for certain homesteads, see Secs. 31.031 and 31.032.
Deferral of tax increase for a value increase exceeding 105 percent, see Sec. 33.065.
Exemption application form, see Rule Sec. 9.415.
Prorating taxes for elderly exemption granted after January 1, see Sec. 26.112.
Qualification date for homestead exemptions, see Sec. 11.42.
Separate appraisal of cooperative housing, see Sec. 23.19.
Termination of elderly homestead exemption, see Sec. 26.10.
Constitutional authorization, see art. VIII, Sec. 1-b, Tex. Const.
Consolidated school districts, see Sec. 41.008, Education Code.

Notes:

The Tax Injunction Act bars injunctive or declaratory relief for state tax matters in federal court unless the state fails to have a speedy and efficient remedy for a taxpayer's claim. Texas courts have such a remedy, and taxpayers could not seek injunctive remedy for taxes assessed on their homesteads for improperly granted exemptions to previous owners of the homes. Hamilton v. Dallas Central Appraisal District, No. 3:98-CV-2553-L (N. D. Tex. 1999).

Article VIII, Section 1-e, Texas Constitution, requires that the prohibition against a state ad valorem tax could be violated even if only a few school districts were affected or if state requirements denied meaningful discretion in setting tax rates. The State must prove that schools were not required to tax at maximum rates to meet the constitutional mandate of a general diffusion of knowledge. The partial homestead exemptions provided in law did not preclude the schools' claims that the State forced them to set maximum tax rates in violation of the constitutional prohibition of a state ad valorem tax. The schools were entitled to present a case that local option homestead exemptions did not afford meaningful discretion in setting rates. West Orange-Cove Consolidated Independent School District v. Alanis, 107 S.W.3d 558 (Tex. 2003).

The chief appraiser has the responsibility to correct appraisal rolls for erroneously granted homestead exemptions. A tax lien is created based on back appraisal, even though the party who benefited from the erroneously granted exemption had sold the property. The liens would be extinguished, however, if tax certificates were issued at the time of the property transfer. Dallas Central Appraisal District v. Wang, 82 S.W.3d 697 (Tex. App.-Dallas 2002, pet. filed).

Taxpayer purchased a residence in 1992 but did not record the deed or apply for a homestead exemption. Appraisal district continued to appraise property as a homestead under the prior owner's homestead application. Appraisal district discovered the transfer and terminated the prior owner's exemption in 1997. Taxpayer submitted a homestead application in 1998. Appraisal district denied the homestead exemption in 1993 through 1996. Appraisal district properly denied the homestead exemption for 1993 through 1996. Purchasers of residences must reapply for a homestead exemption. The homestead exemption for a prior owner terminates upon conveyance of the property. Appraisal district may remove erroneous exemptions if discovered within five years. A taxpayer may file a homestead exemption application up to one year late. An appraisal district can only be held to the requirements of Section 25.19(g) if put on notice of a transfer of property. Dallas Central Appraisal District and Dallas County Appraisal Review Board v. Brown, 19 S.W.3d 878 (Tex. App.-Dallas [5th Dist.] 2000, no pet.).

A property owner had two years to redeem foreclosed property if property was the owner's homestead. The owner could meet the homestead requirements under Section 11.13 by occupying the property as a principal residence or having the property owned through a beneficial interest in a qualifying trust by a trustor who qualified for the exemption. The legislative intent is to allow an owner who occupies a homestead an additional period of time to redeem that homestead. The mere failure to actually file an exemption application would deprive the owner of the right to redeem his homestead. Nichols v. Lincoln Trust Company, 8 S.W.3d 346 (Tex. App.-Amarillo 1999, no pet.).

A spouse with a legal life estate is an owner of the property for property tax purposes and entitled to claim a homestead exemption. The Tax Code requires the property to be listed in the name of the life tenant. Copeland v. Tarrant Appraisal District, 906 S.W.2d 148 (Tex. App.-Fort Worth 1995, writ denied).

Where a residence homestead was the separate property of the under-65 husband, the over-65 wife could not qualify for the over-65 exemption, even though the property was her homestead for other constitutional purposes. Under the statute, the qualified person must be an owner of the residence. Ripley v. Stephens, 686 S.W.2d 757 (Tex. App.-Austin 1985, writ ref'd n.r.e.).

A residence homeowner's rental of a part of the residence to another person disqualifies that part of the home from homestead exemptions. This rental provision does not apply when the homeowner rents the entire residence to another and is absent from the residence homestead. Rental of the entire property would be merely one aspect; among others to consider in determining exempt status are whether the owner's absence is temporary, whether the owner has established a different principal residence, and whether the owner intends to return and occupy the property as the principal residence. Rental of the entire property, by itself, does not change the residence-homestead status for homestead exemptions under Tax Code Section 11.13. Several definitions for terms used in Tax Code Section 11.13 are: "principal residence" is the owner's primary or chief residence that the owner actually occupies on a regular basis; "temporary" refers to a limited or short absence of the owner from the residence homestead. What constitutes a 'temporary' period of absence from the residence homestead necessarily depends on the particular circumstances: the length of the home owner's absence and whether the home owner has established another principal residence and whether the owner intends to return and occupy the residence as his or her principal residence. The length of the period probably is less important than the establishment of a different principal residence and the owner's intent to return and occupy the residence as a principal residence. Op. Tex. Att'y Gen. No. JC-415 (2001).

A blind person under the age of 55 who is engaged in substantial gainful activity is not under a disability for purposes of payment of disability insurance benefits under the Federal Old-Age, Survivors, and Disability Insurance, and is therefore not entitled to a homestead exemption under Property Tax Code Section 11.13(c) and (d). Tex. Att'y Gen. LO-95-060 (1995).

All homestead exemptions are to be adopted by the actions of a taxing unit's governing body, not through an election ballot voted on by the taxpayers. Op. Tex. Att'y. Gen. No. DM-312 (1994).

A taxing unit does not have to offer the optional homestead exemption set forth in art. 8, Sec. 1-b, Tex. Const., to both the elderly and the disabled, but may choose either one or both. Op. Tex. Att'y Gen. No. JM-829 (1987).

Neither the residence owned by a corporation, nor the corporate stock owned by persons who live in cooperative housing is entitled to the residence homestead tax exemption or to the protection afforded homesteads exempt from forced sale for debt. Op. Tex. Att'y Gen. No. JM-612 (1986). (Note: Sec. 11.13(o) has been added to permit owners of cooperative housing to receive a residential homestead exemption beginning January 1, 1988.)

A chief appraiser cannot arbitrarily limit the amount of land granted a homestead exemption to less than the maximum 20 acres specified in Subsection (j). The amount of land must be determined on a case-by-case basis according to its actual use. Op. Tex. Att'y Gen. No. JM-40 (1983).

The exemption application deadline in Sec. 11.43 does not apply to local option over-65 exemptions granted under art. VIII, Sec. 1-b of the Texas Constitution. Op. Tex. Att'y Gen. No. MW-146 (1980). However, in a later opinion in the same year, the attorney general said a taxpayer could wait so long that granting his exemption would be administratively impracticable. Op. Tex. Att'y Gen. No. MW-259 (1980). (Note: These opinions preceded the addition of Sec. 11.431 to the Property Tax Code.)

Sec. 11.14. Tangible Personal Property Not Producing Income.

(a) A person is entitled to an exemption from taxation of all tangible personal property, other than manufactured homes, that the person owns and that is not held or used for production of income. This subsection does not exempt from taxation a structure that a person owns which is substantially affixed to real estate and is used or occupied as a residential dwelling.

(b) In this section, "manufactured home" has the meaning assigned by Section 11.432 of this code.

(c) The governing body of a taxing unit, by resolution or order, depending upon the method prescribed by law for official action by that governing body, may provide for taxation of tangible personal property exempted under Subsection (a). If a taxing unit provides for taxation of tangible personal property as provided by this subsection, the exemption prescribed by Subsection (a) does not apply to that unit.

(d) The central appraisal district for the county shall determine the cost of appraising tangible personal property required by a taxing unit under the provisions of Subsection (c) and shall assess those costs to the taxing unit or taxing units which provide for the taxation of tangible personal property.

(e) A political subdivision choosing to tax property otherwise made exempt by this section, pursuant to Article VIII, Section 1(e), of the Texas Constitution, may not do so until the governing body of the political subdivision has held a public hearing on the matter, after having given notice of the hearing at the times and in the manner required by this subsection, and has found that the action will be in the public interest of all the residents of that political subdivision. At the hearing, all interested persons are entitled to speak and present evidence for or against taxing the property. Not later than the 30th day prior to the date of a hearing held under this subsection, notice of the hearing must be:

(1) published in a newspaper having general circulation in the political subdivision and in a section of the newspaper other than the advertisement section;

(2) not less than one-half of one page in size; and

(3) republished on not less than three separate days during the period beginning with the 10th day prior to the hearing and ending with the actual date of the hearing.

Amended by 1987 Tex. Laws, ch. 1, Sec. 1; amended by 1989 Tex. Laws, p. 391, ch. 76, Sec. 1; amended by 1991 Tex. Laws, p. 1482, ch. 391, Sec. 15; amended by 1993 Tex. Laws, p. 1527, ch. 347, Sec. 4.09; amended by 2001 Tex. Laws, p. 921, ch. 521, Sec. 1; amended by SB 510, 78th Tex. Leg., 2003, effective September 1, 2003.

Cross References:

No application required, see Sec. 11.43(a).
Constitutional authorization, see art. VIII, Sec. 1, Tex. Const.
Definition of person, see Sec. 311.005, Government Code.
Notice of hearing, see Rule Sec. 9.3057.
Travel trailers, see Sec. 11.142.

Notes:

A boat used for recreational purposes is personal property but is not equivalent to "personal effects" for exemption from taxation, and the statutory construction does not require limitation to boats used as means of transportation. Twiford v. Nueces County Appraisal District, 725 S.W.2d 325 (Tex. App.-Corpus Christi 1987, writ ref'd n.r.e.). (Note: The 1987 amendment to Sec. 11.14 defines a boat as a "personal effect" in order to receive a property tax exemption.)

Under Tax Code Section 1.04(3), subsection (A), a travel trailer that has been permanently affixed to land is an improvement and is taxable as real property. Under subsection (B), a travel trailer is also an improvement and taxable as real property if the owner of the trailer owns the land on which it is located. It is not relevant under subsection (B) whether or not the travel trailer has been affixed to land. Subsection (B) is intended to expand rather than restrict the universe of structures taxable as improvements. Whether a travel trailer may be taxed as personal property will depend not only on whether the governmental body has complied with the procedural requirements of Section 11.14, but also whether the constitution permits its exemption from taxation. Op. Tex. Att'y Gen. No. JC-282 (2000). (Amendment by HB 1869, 77th Tex. Leg, 2001, eff. January 1, 2002, changed Tax Code Section 32.014 tax lien for manufactured housing.)

Travel trailers that have been affixed to rented land are personal property, but are not exempt as personal property not used to produce income. Imposing property taxes on these travel trailers that have paid sales taxes and motor vehicle registration does not constitute double taxation. Determining if a particular piece of personal property has become an improvement depends on the intent of the owner as evidenced by the mode and sufficiency of annexation. The appraisal district must determine if the attachment is permanent, subject to the property owner's right to protest to the appraisal review board. Long-term placement of travel trailers on lots of land owned by another person results in separate taxable interests, but not two separate interests in real property. A trailer attached to a leased lot, while an improvement to real property, generally will remain the property of the person leasing the lot from the trailer park. Such a trailer is taxable to the lessee of the lot, but as personal property rather than real property. Op. Tex. Att'y Gen. No. JC-150 (1999). (Amendment by HB 1869, 77th Tex. Leg, 2001, eff. January 1, 2002, changed Tax Code Section 32.014 tax lien for manufactured housing.)

A court likely would conclude that it is not unconstitutional to require a lessor to pay property taxes on a motor vehicle that the lessor leases to a person who uses the vehicle primarily for personal purposes and not for the production of income. Tex. Att'y Gen. LO-96-030 (1996).

The local-option exemption for personal boats applied to boats in a taxing unit as of January 1, 1987, if that unit had not approved its 1987 tax roll before May 26, 1987; the legislature could not forgive prior years' taxes since a tax liability has accrued, or is fixed, when a taxing unit has performed the Chapter 26 requirements. Op. Tex. Att'y Gen. JM-893 (1988).

Sec. 11.142. Repealed in 2003.

Added by 2001 Tex. Laws, p. 921, ch. 521, Sec. 2; repealed by SB 510, 78th Tex. Leg., 2003, effective September 1, 2003.

Cross References:

Constitutional authorization, see art. VIII, Sec. 1(d) & (j), Tex. Const.

Sec. 11.145. Income-Producing Tangible Personal Property Having Value of Less Than $500.

(a) A person is entitled to an exemption from taxation of the tangible personal property the person owns that is held or used for the production of income if that property has a taxable value of less than $500.

(b) The exemption provided by Subsection (a) applies to each separate taxing unit in which a person holds or uses tangible personal property for the production of income, and for the purposes of Subsection (a), all property in each taxing unit is aggregated to determine taxable value.

Added by 1995 Tex. Laws, p. 2664, ch. 296, Sec. 1.

Cross References:

Constitutional authorization, see art. VIII, Sec. 1 (d) and (g), Tex. Const.
Income-producing personal property with value above $500, see Sec. 21.02.
No exemption application required, Sec. 11.43(a).
Not on absolute exemption list, see Rule Sec. 9.3011.
Rendering of property, see Sec. 22.01 and Rule Sec. 9.3031.

Sec. 11.146. Mineral Interest Having Value of Less Than $500.

(a) A person is entitled to an exemption from taxation of a mineral interest the person owns if the interest has a taxable value of less than $500.

(b) The exemption provided by Subsection (a) applies to each separate taxing unit in which a person owns a mineral interest and, for the purposes of Subsection (a), all mineral interests in each taxing unit are aggregated to determine value.

Added by 1995 Tex. Laws, p. 2664, ch. 296, Sec. 1.

Cross References:

Constitutional authorization, see art. VIII, Sec. 1 (d and (h), Tex. Const.
No exemption application required, Sec. 11.43(a).
Not on absolute exemption list, see Rule Sec. 9.3011.

Sec. 11.15. Family Supplies.

A family is entitled to an exemption from taxation of its family supplies for home or farm use.

Cross References:

No application required, see Sec. 11.43(a).
Constitutional authorization, see art. VIII, Secs. 1 & 19, Tex. Const.

Sec. 11.16. Farm Products.

(a) A producer is entitled to an exemption from taxation of the farm products that he produces and owns. A nursery product, as defined by Section 71.041, Agriculture Code, is a farm product for purposes of this section if it is in a growing state.

(b) Farm products in the hands of the producer are exempt.

(c) For purposes of this exemption, the following definitions apply:

(1) "Farm products" include livestock, poultry, and timber.

(2) "In the hands of the producer," for livestock and poultry, means under the ownership of the person who is financially providing for the physical requirements of such livestock and poultry on January 1 of the tax year and, for timber, means standing timber or timber that has been harvested and, on January 1 of the tax year, is located on the real property on which it was produced and is under the ownership of the person who owned the timber when it was standing.

Amended by 1981 Tex. Laws, p. 457, ch. 192, Sec. 1; amended by 1981 Tex. Laws, p. 1487, ch. 388, Sec. 3; amended by 1999 Tex. Laws, p. 3191, ch. 631, Sec. 2.

Cross References:

No application required, see Sec. 11.43(a).
Constitutional authorization, see art. VIII, Sec. 19, Tex. Const.

Notes:

Marijuana is not a farm product and, therefore, not exempt under art. VIII, Sec. 19, Tex. Const., or under Sec. 11.16, Tax Code. Even assuming marijuana were a farm product, it would not be exempt in a case where the defendant was accused of the possession and delivery of marijuana, as a controlled substance, and the possession of it as a taxable substance, because the defendant was a marijuana dealer, not a marijuana farmer. Marijuana was not contemplated by the framers to be a tax-exempt farm product. Lopez v. State, 837 S.W.2d 863 (Tex. App.-Houston [1st Dist.] 1992).

Grain delivered to a cooperative marketing association incorporated under the Cooperative Marketing Act (Sec. 52.001, Agriculture Code) by producer members is still a farm product in the hands of the producer for the purposes of this exemption, even though held for sale by the marketing association. Plainview Independent School District v. Edmonson Wheat Growers, Inc., 681 S.W.2d 299 (Tex. App.-Amarillo 1984, writ ref'd n.r.e.).

The exemption of nursery products under this section is constitutional. The term "nursery product" as used within the Property Tax Code is an "agricultural product" as that term is used in the Agricultural Code. Nursery stock in its first growth stage is "in the hands of the producer" within the meaning of art. VIII, Sec. 19, Tex. Const. Op. Tex. Att'y Gen. No. MW-583 (1982).

Seed in the possession of a cooperative marketing association was still a farm product in the hands of the producer. Op. Tex. Att'y Gen. No. M-632 (1970).

Sec. 11.161. Implements of Husbandry.

Implements of husbandry that are used in the production of farm or ranch products or of timber are exempt from ad valorem taxation.

Added by 1981 Tex. Laws (1st C.S.), p. 127, ch. 13, Sec. 32; amended by 1983 Tex. Laws, p. 4823, ch. 851, Sec. 7; amended by 1999 Tex. Laws, p. 3191, ch. 631, Sec. 3.

Cross References:

No application required, see Sec. 11.43(a).
Constitutional authorization, see art. VIII, Sec. 19a, Tex. Const.
Nursery stock protection unit, see Sec. 71.041(5), Agriculture Code.

Notes:

HB 334, 73rd Legislature, 1993, effective January 1, 1994, defines a "nursery stock weather protection unit" as "a plant cover consisting of a series of removable, portable metal hoops, covered by nonreusable plastic sheeting, shade cloth, or other similar removable material, used exclusively for protecting nursery products from weather elements. A nursery stock weather protection unit is an implement of husbandry for all purposes, including Article VIII, Section 19a, of the Texas Constitution."

An item must be either equipment or machinery to qualify as an implement of husbandry under the Constitution and Tax Code. A structure or fixture on the land could not qualify. "Winter protection structures" are structures that could affect the value of the land to which they are affixed, so they could not qualify as implements of husbandry. Hawkins v. Van Zandt County Appraisal District, 834 S.W.2d 619 (Tex. App.-Eastland 1992, writ denied). (Note: In 1993, the Legislature amended Sec. 71.041, Agriculture Code, to define "nursery stock protection units" as implements of husbandry for all purposes, including the Constitution and Sec. 11.161, Tax Code.)

The phrase "implements of husbandry" in Sec. 11.161 includes those items of machines or equipment whose primary design and primary use or purpose is that of an implement used by a farmer or rancher in conducting his farming or ranching operations. Op. Tex. Att'y Gen. No. JM-718 (1987).

Personal property used in fish farming is exempt under art. VIII, Sec. 19a, Tex. Const. However, equipment must be used for cultivation which implies a degree of human labor to produce the fish products, rather than the mere harvesting. Op. Tex. Att'y Gen. No. JM-87 (1983).

The term "implement of husbandry" does not include structures or fixtures. But any item that has a primary design and is primarily used for farming and ranching operations may be exempted as an implement of husbandry. Op. Tex. Att'y Gen. No. MW-451 (1982).

Sec. 11.17. Cemeteries.

A person is entitled to an exemption from taxation of the property he owns and uses exclusively for human burial and does not hold for profit.

Cross References:

Constitutional authorization, see art. VIII, Sec. 2, Tex. Const.
Annual application not required, see Sec. 11.43(c).
Exemption application form, see Rule Sec. 9.415.

Notes:

Publicly-dedicated cemetery property is exempt from taxation, even though a corporation owns the property. Once an owner publicly dedicated land for burial purposes only, the land's use was fixed since the land cannot be sold or otherwise disposed of for any purpose other than burials. The owner of the dedicated property may sell the land for more than the land originally cost the owner. Notwithstanding these sales transactions, the property is not dedicated or held for profit. Laurel Land Memorial Park, Inc., et al. v. Dallas Central Appraisal District, 911 S.W.2d 783 (Tex. App.-Dallas 1995, rehearing denied).

Execution of an oil and gas lease on cemetery lands made the mineral estate taxable, even though the revenue was used for the upkeep of the cemetery. Op. Tex. Att'y Gen. No. 0-4755 (1942).