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

Chapter 11. Taxable Property and Exemptions

Subchapter C. Administration of Exemptions

Sec. 11.41. Partial Ownership of Exempt Property.
Sec. 11.42. Exemption Qualification Date.
Sec. 11.421. Qualification of Religious Organization.
Sec. 11.422. Qualification of a School.
Sec. 11.423. Qualification of Charitable Organization or Youth Association.
Sec. 11.424. Conflict Between Governing Regulation or Nonprofit Organization, Association, or Entity and Contract with United States.
Sec. 11.43. Application for Exemption.
Sec. 11.431. Late Application for Homestead Exemption.
Sec. 11.432. Homestead Exemption for Manufactured Home.
Sec. 11.433. Late Application for Religious Organization Exemption.
Sec. 11.434. Late Application for a School Exemption.
Sec. 11.435. Late Application for a Charitable Organization Exemption.
Sec. 11.436. Application for Exemption of Certain Property Used for Low-Income Housing.
Sec. 11.437. Exemption for Cotton Stored in Warehouse.
Sec. 11.438. Late Application for Veteran's Organization Exemption.
Sec. 11.439. Late Application for Disabled Veterans Exemption.
Sec. 11.4391. Late Application for Freeport Exemption.
Sec. 11.44. Notice of Application Requirements.
Sec. 11.45. Action on Exemption Applications.
Sec. 11.46. Compilation of Partial Exemptions.
Sec. 11.47. Mail Survey of Residence Homesteads.
Sec. 11.48. Confidential Information.

Sec. 11.432. Homestead Exemption for Manufactured Home.

(a) For a manufactured home to qualify for an exemption under Section 11.13 of this code, the application for the exemption must be accompanied by a copy of the statement of ownership and location for the manufactured home issued by the manufactured housing division of the Texas Department of Housing and Community Affairs under Section 1201.207, Occupations Code, showing that the individual applying for the exemption is the owner of the manufactured home or be accompanied by a verified copy of the purchase contract showing that the applicant is the purchaser of the manufactured home.

(b) The land on which a manufactured home is located qualifies for an exemption under Section 11.13 only if:

(1) the manufactured home qualifies for an exemption as provided by Subsection (a); and

(2) the manufactured home is listed together with the land on which it is located under Section 25.08.

(c) In this section, "manufactured home" has the meaning assigned by Section 1201.003, Occupations Code.

Added by 1985 Tex. Laws, p. 6294, ch. 846, Sec. 14; amended by 1989 Tex. Laws, p. 4225, ch. 1039, Sec. 4.02; amended by 1993 Tex. Laws, p. 1286, ch. 274, Sec. 12; amended by HB 3506, 78th Tex. Leg., 2003, effective September 1, 2003; amended by SB 521, 78th Tex. Leg., 2003, effective January 1, 2004.

Cross References:

Residence homestead exemption, see Sec. 11.13.
Manufactured Housing Standards Act, see art. 5221f, V.A.C.S.
Model application form, see Rule Sec. 9.415.

Sec. 11.433. Late Application for Religious Organization Exemption.

(a) The chief appraiser shall accept and approve or deny an application for a religious organization exemption under Section 11.20 after the filing deadline provided by Section 11.43 if the application is filed not later than December 31 of the fifth year after the year in which the taxes for which the exemption is claimed were imposed.

(b) The chief appraiser may not approve a late application for an exemption filed under this section if the taxes imposed on the property for the year for which the exemption is claimed are paid before the application is filed.

(c) If a late application is approved after approval of the appraisal records for the year for which the exemption is granted, the chief appraiser shall notify the collector for each taxing unit in which the property was taxable in the year for which the exemption is granted. The collector shall deduct from the organization's tax bill the amount of tax imposed on the property for that year if the tax has not been paid and any unpaid penalties and accrued interest relating to that tax. The collector may not refund taxes, penalties, or interest paid on the property for which an exemption is granted under this section.

(d) The chief appraiser may grant an exemption for property pursuant to an application filed under this section only if the property otherwise qualified for the exemption under the law in effect on January 1 of the tax year for which the exemption is claimed.

(e) Repealed in 1999.

Added by 1989 Tex. Laws (6th C.S.), p. 46, ch. 8, Sec. 1; amended by 1993 Tex. Laws, p. 4328, ch. 971, Sec. 1; amended by 1997 Tex. Laws, p. 1025, ch. 170, Sec. 1; amended by 1999 Tex. Laws, p. 2835, ch. 449, Secs. 1 and 5; amended by 1999 Tex. Laws, p. 3450, ch. 817, Sec. 4.

Notes:

Property Tax Code Section 11.433 is a constitutional act of the Texas Legislature. Therefore, a retroactive exemption of a religious organization's property is valid so long as taxes have not been paid on the property. Corpus Christi People's Baptist Church, Inc. v. Nueces County Appraisal District, 904 S.W.2d 621 (Tex. 1995).

The Supreme Court reversed the appellate decision in this case. Article III, Sec. 55, Tex. Const., prevents the Legislature from canceling obligations or liabilities because the effect would be to shrink public revenue. Because delinquent taxes are "liabilities" under Article III, Sec. 55, Sec. 11.433, Tax Code, is unconstitutional because it releases liabilities owed to the county. If the appraisal district were to approve an exemption for real property, the exemption would involve a release of the tax liability and the tax lien, prohibited by the express language in Article III, Sec. 55. Nueces County Appraisal District v. People's Baptist Church, 860 S.W.2d 627 (Tex. App.-Corpus Christi 1993), rev'd 904 S.W.2d 621 (Tex. 1995).

The exempt status of a church could not be raised in a suit for delinquent taxes. The church failed to include the appraisal district as a party to the lawsuit, so that no action could be taken on its counterclaim concerning denial of its late application and qualification for exemption as a religious organization. The Tax Code remedies are exclusive. St. Joseph Orthodox Christian Church v. Spring Branch Independent School District, 110 S.W.3d 477 (Tex. App.-Houston [14th Dist.] 2003, no pet.).

Sec. 11.434. Late Application for a School Exemption.

(a) The chief appraiser shall accept or deny an application for a school exemption under Section 11.21 after the filing deadline provided by Section 11.43 if the application is filed not later than December 31 of the fifth year after the year in which the taxes for which the exemption is claimed were imposed.

(b) The chief appraiser may not approve a late application for an exemption filed under this section if the taxes imposed on the property for the year for which the exemption is claimed are paid before the application is filed.

(c) If a late application is approved after approval of the appraisal records for the year for which the exemption is granted, the chief appraiser shall notify the collector for each taxing unit in which the property was taxable in the year for which the exemption is granted. The collector shall deduct from the school's tax bill the amount of tax imposed on the property for that year if the tax has not been paid and any unpaid penalties and accrued interest relating to that tax. The collector may not refund taxes, penalties, or interest paid on the property for which an exemption is granted under this section.

(d) Repealed in 1999.

Added by 1991 Tex. Laws, p. 2894, ch. 836, Sec. 6.3; amended by 1997 Tex. Laws, p. 5289, ch. 1411, Sec. 7; amended by 1999 Tex. Laws, p. 2835, ch. 449, Secs. 2 and 5.

Sec. 11.435. Late Application for Charitable Organization Exemption.

(a) The chief appraiser shall accept and approve or deny an application for a charitable organization exemption under Section 11.18 after the filing deadline provided by Section 11.43 if the application is filed not later than December 31 of the fifth year after the year in which the taxes for which the exemption is claimed were imposed.

(b) The chief appraiser may not approve a late application for an exemption filed under this section if the taxes imposed on the property for the year for which the exemption is claimed are paid before the application is filed.

(c) If a late application is approved after approval of the appraisal records for the year for which the exemption is granted, the chief appraiser shall notify the collector for each taxing unit in which the property was taxable in the year for which the exemption is granted. The collector shall deduct from the organization's tax bill the amount of tax imposed on the property for that year if the tax has not been paid and any unpaid penalties and accrued interest relating to that tax. The collector may not refund taxes, penalties, or interest paid on the property for which an exemption is granted under this section.

(d) The chief appraiser may grant an exemption for property pursuant to an application filed under this section only if the property otherwise qualified for the exemption under the law in effect on January 1 of the tax year for which the exemption is claimed.

(e) Repealed in 1999.

Added by 1991 Tex. Laws, p. 2895, ch. 836, Sec. 6.4; amended by 1997 Tex. Laws, p. 1025, ch. 170, Sec. 2; amended by 1999 Tex. Laws, p. 2835, ch. 449, Secs. 3 and 5.

Sec. 11.436. Application for Exemption of Certain Property Used for Low-Income Housing.

(a) An organization that acquires property that qualifies for an exemption under Section 11.181(a) or 11.1825 may apply for the exemption for the year of acquisition not later than the 30th day after the date the organization acquires the property, and the deadline provided by Section 11.43(d) does not apply to the application for that year.

(b) If the application is granted, the exemption for that year applies only to the portion of the year in which the property qualifies for the exemption, as provided by Section 26.111. If the application is granted after approval of the appraisal records by the appraisal review board, the chief appraiser shall notify the collector for each taxing unit in which the property is located. The collector shall calculate the amount of tax due on the property in that year as provided by Section 26.111 and shall refund any amount paid in excess of that amount.

(c) To facilitate the financing associated with the acquisition of a property, an organization, before acquiring the property, may request from the chief appraiser of the appraisal district established for the county in which the property is located a preliminary determination of whether the property would qualify for an exemption under Section 11.1825 if acquired by the organization. The request must include the information that would be included in an application for an exemption for the property under Section 11.1825. Not later than the 45th day after the date a request is submitted under this subsection, the chief appraiser shall issue a written preliminary determination for the property included in the request. A preliminary determination does not affect the granting of an exemption under Section 11.1825.

Added by 1993 Tex. Laws, p. 1479, ch. 345, Sec. 3; amended by 1997 Tex. Laws, p. 22361, ch. 715, Sec. 3; amended by 2001 Tex. Laws, p. 1591, ch. 842, Sec. 3; amended by HB 3546, 78th Tex. Leg., 2003, effective January 1, 2004.

Cross References:

Charitable organization exemption for low-income housing property, see Sec. 11.181.
Charitable organization exemption for community housing development property, see Sec. 11.182.
Model application form, see Rule Sec. 9.415.
Prorating taxes, see Sec. 26.111.

Sec. 11.437. Exemption for Cotton Stored in Warehouse.

(a) A person who operates a warehouse used primarily for the storage of cotton for transportation outside of this state may apply for an exemption under Section 11.251 for cotton stored in the warehouse on behalf of all the owners of the cotton. An exemption granted under this section applies to all cotton stored in the warehouse that is eligible to be exempt under Section 11.251. Cotton that is stored in a warehouse covered by an exemption granted under this section and that is transported outside of this state is presumed to have been transported outside of this state within the time permitted by Article VIII, Section 1-j, of the Texas Constitution for cotton to qualify for an exemption under that section.

(b) An exemption granted under this section, once allowed, need not be claimed in subsequent years, and except as provided by Section 11.43(e), the exemption applies to cotton stored in the warehouse until the warehouse changes ownership or the cotton's qualification for the exemption changes. The chief appraiser may, however, require a person who operates a warehouse for which an exemption for cotton has been granted in a prior year to file a new application to confirm the cotton's current qualification for the exemption by delivering a written notice that a new application is required, accompanied by an appropriate application form, to the person.

Added by 1993 Tex. Laws, p. 3054, ch. 779, Sec. 3.

Cross References:

Annual application exception, see Sec. 11.43(b).
Constitutional authorization, see art. VIII, Sec. 1-j, Tex. Const.
Exemption application, see Rule Sec. 9.415.
Filing rendition, see Secs. 22.01 and 22.04.
Freeport exemption, see Sec. 11.251.

Sec. 11.438. Late Application for Veteran's Organization Exemption.

(a) The chief appraiser shall accept and approve or deny an application for a veteran's organization exemption under Section 11.23(a) after the filing deadline provided by Section 11.43 if the application is filed not later than December 31 of the fifth year after the year in which the taxes for which the exemption is claimed were imposed.

(b) If the taxes and related penalties and interest imposed on the property for the year for which the exemption is claimed are paid before an application is filed under this section, the chief appraiser may approve the late application for an exemption only on a showing that the taxes, penalties, and interest were paid under protest.

(c) If a late application is approved after approval of the appraisal records for a year for which the exemption is granted, the chief appraiser shall notify the collector for each taxing unit in which the property was taxable in that year. The collector shall deduct from the organization's tax bill the amount of tax imposed on the property for that year and any penalties and interest relating to that tax if the tax and related penalties and interest have not been paid. If the tax and related penalties and interest on the property for a tax year for which an exemption is granted under this section were paid under protest, the organization may apply for a refund of the tax, penalties, and interest paid as provided by Section 31.11. Section 31.11(c) does not apply to a refund under this section.

(d) Repealed in 1999.

Added by 1997 Tex. Laws, p. 5028, ch. 1328, Sec. 1; amended by 1999 Tex. Laws, p. 2835, ch. 449, Secs. 4 and 5.

Sec. 11.439. Late Application for Disabled Veterans Exemption.

(a) The chief appraiser shall accept and approve or deny an application for an exemption under Section 11.22 after the filing deadline provided by Section 11.43 if the application is filed not later than the first anniversary of the earlier of:

(1) the date the taxes on the property were paid; or

(2) the date the taxes became delinquent.

(b) If a late application is approved after approval of the appraisal records for the year for which the exemption is granted, the chief appraiser shall notify the collector for each taxing unit in which the property was taxable in that year. The collector shall correct the taxing unit's tax roll to reflect the amount of tax imposed on the property after applying the exemption and shall deduct from the person's tax bill the amount of tax imposed on the exempted portion of the property for that year. If the tax and any related penalties and interest have been paid, the collector shall pay to the person a refund of the tax imposed on the exempted portion of the property and the corresponding portion of any related penalties and interest paid. The collector shall pay the refund not later than the 60th day after the date the chief appraiser notifies the collector of the approval of the exemption. No additional interest is due on the amount refunded.

Added by 2001 Tex. Laws, p. 385, ch. 213, Sec. 2.

Sec. 11.4391. Late Application for Freeport Exemption.

(a) The chief appraiser shall accept and approve or deny an application for an exemption for freeport goods under Section 11.251 after the deadline for filing it has passed if it is filed before the date the appraisal review board approves the appraisal records.

(b) If the application is approved, the property owner is liable to each taxing unit for a penalty in an amount equal to 10 percent of the difference between the amount of tax imposed by the taxing unit on the inventory or property, a portion of which consists of freeport goods, and the amount that would otherwise have been imposed.

(c) The chief appraiser shall make an entry on the appraisal records for the inventory or property indicating the property owner's liability for the penalty and shall deliver a written notice of imposition of the penalty, explaining the reason for its imposition, to the property owner.

(d) The tax assessor for a taxing unit that taxes the inventory or property shall add the amount of the penalty to the property owner's tax bill, and the tax collector for the unit shall collect the penalty at the time and in the manner the collector collects the tax. The amount of the penalty constitutes a lien against the inventory or property against which the penalty is imposed, as if it were a tax, and accrues penalty and interest in the same manner as a delinquent tax.

Added by 2001 Tex. Laws, p. 264, ch. 125, Sec. 3; amended by HB 3506, 78th Tex. Leg., 2003, effective September 1, 2003.

Notes:

The taxpayer failed to exhaust its administrative remedies by not raising the issue of an application filing extension before the review board and evidence was not presented to establish entitlement to relief under Section 11.439 (now Section 11.4391) because no date of appraisal roll approval was offered. As a result, the Court did not address the retroactive application of the law. The application filed after the April 30 deadline in effect in 1999 barred the granting of the freeport exemption for that year. The taxpayer failed to file timely a freeport exemption application and did not request a filing extension for good cause as required in 1999. At trial, the taxpayer claimed that the appraisal district failed to treat the transmittal letter with the application as a request for extension. The taxpayer further contended that the amendment to the application requirements by Section 11.439 (effective in 2000 and renumbered in 2003 to Section 11.4391), permitting acceptance of late applications if filed before approval of appraisal records by the appraisal review board, should apply. Quorum International v. Tarrant Appraisal District, 114 S.W.3d 568 (Tex. App.-Fort Worth 2003, pet. denied).

Sec. 11.44. Notice of Application Requirements.

(a) Before February 1 of each year, the chief appraiser shall deliver an appropriate exemption application form to each person who in the preceding year was allowed an exemption that must be applied for annually. He shall include a brief explanation of the requirements of Section 11.43 of this code.

(b) Each year the chief appraiser for each appraisal district shall publicize, in a manner reasonably designed to notify all residents of the district, the requirements of Section 11.43 of this code and the availability of application forms.

(c) The comptroller shall prescribe by rule the content of the explanation required by Subsection (a) of this section, and shall require that each exemption application form be printed and prepared:

(1) as a separate form from any other form; or

(2) on the front of the form if the form also provides for other information.

Amended by 1981 Tex. Laws (1st C.S.), p. 132, ch. 13, Sec. 43; amended by 1991 Tex. Laws (2nd C.S.), p. 29, ch. 6, Sec. 13.

Cross References:

Notice of application requirements, see Rule Sec. 9.3034.

Sec. 11.45. Action on Exemption Applications.

(a) The chief appraiser shall determine separately each applicant's right to an exemption. After considering the application and all relevant information, the chief appraiser shall, as the law and facts warrant:

(1) approve the application and allow the exemption;

(2) modify the exemption applied for and allow the exemption as modified;

(3) disapprove the application and request additional information from the applicant in support of the claim; or

(4) deny the application.

(b) If the chief appraiser requests additional information from an applicant, the applicant must furnish it within 30 days after the date of the request or the application is denied. However, for good cause shown the chief appraiser may extend the deadline for furnishing the information by written order for a single period not to exceed 15 days.

(c) The chief appraiser shall determine the validity of each application for exemption filed with him before he submits the appraisal records for review and determination of protests as provided by Chapter 41 of this code.

(d) If the chief appraiser modifies or denies an exemption, he shall deliver a written notice of the modification or denial to the applicant within five days after the date he makes the determination. He shall include with the notice a brief explanation of the procedures for protesting his action.

Amended by 1981 Tex. Laws (1st C.S.), p. 133, ch. 13, Sec. 44.

Cross References:

Delivery of notice, see Sec. 1.07.
Denial notice by certified mail, see Sec. 1.07.
Late protest for failure to deliver required notice, see Sec. 41.411.
Notices must be delivered before submission of appraisal records, see Sec. 25.22.
Supplemental appraisal records, see Sec. 25.23(d).

Notes:

The freeport provision is not self executing, and the legislature is authorized to prescribe forfeiture provisions. The filing requirements of Section 11.251, while different from other exemption provisions, are not unreasonable or arbitrary. The request for additional information provided in Section 11.45 does apply to the freeport exemption. The 30-day deadline in Section 11.251 is not unconstitutional. Motorola, Inc. v. Tarrant County Appraisal District, 980 S.W.2d 899 (Tex. App.-Fort Worth 1998).

The chief appraiser's action in holding an application for charitable exemption in abeyance pending the outcome of a court suit did not constitute a denial of the application. Applicant was not required to pursue its remedies before raising its defense of exemption from taxes. Moody House, Inc. v. Galveston County, 687 S.W.2d 433 (Tex. App.-Houston 1985, writ ref'd n.r.e.).

Sec. 11.46. Compilation of Partial Exemptions.

Each year the chief appraiser shall compile and make available to the public a list showing for each taxing unit in the district the number of each kind of partial exemption allowed in that tax year and the total assessed value of each taxing unit that is exempted by each kind of partial exemption.

Amended by 1981 Tex. Laws (1st C.S.), p. 133, ch. 13, Sec. 45.

Cross References:

Form of partial exemption list, see Rule Sec. 9.3010.

Sec. 11.47. Mail Survey of Residence Homesteads.

(a) Between December 1 and December 31 of any year, the appraisal office may mail a card to each person who was allowed, in that year, one or more residence homestead exemptions that are not required to be claimed annually. The appraisal office shall include on the card the description of the property and the kind and amount of residence homestead exemptions allowed for the property according to the appraisal office records.

(b) The appraisal office shall include on each card mailed as authorized by this section a direction to the postal authorities not to forward it to any other address and to return it to the appraisal office if the addressee is no longer at the address to which the card was mailed.

(c) The appraisal office shall investigate each residence homestead exemption allowed a person whose card is returned undelivered.

Added by 1981 Tex. Laws (1st C.S.), p. 133, ch. 13, Sec. 46.

Sec. 11.48. Confidential Information.

(a) A driver's license number, personal identification certificate number, or social security account number provided in an application for an exemption filed with a chief appraiser is confidential and not open to public inspection. The information may not be disclosed to anyone other than an employee of the appraisal office who appraises property, except as authorized by Subsection (b).

(b) Information made confidential by this section may be disclosed:

(1) in a judicial or administrative proceeding pursuant to a lawful subpoena;

(2) to the person who filed the application or to the person's representative authorized in writing to receive the information;

(3) to the comptroller and the comptroller's employees authorized by the comptroller in writing to receive the information or to an assessor or a chief appraiser if requested in writing;

(4) in a judicial or administrative proceeding relating to property taxation to which the person who filed the application is a party; or

(5) if and to the extent the information is required to be included in a public document or record that the appraisal office is required by law to prepare or maintain.

(c) A person who legally has access to an application for an exemption or who legally obtains the information from the application made confidential by this section commits an offense if the person knowingly:

(1) permits inspection of the confidential information by a person not authorized by Subsection (b) to inspect the information; or

(2) discloses the confidential information to a person not authorized by Subsection (b) to receive the information.

(d) An offense under Subsection (c) is a Class B misdemeanor.

Added by HB 500, 78th Tex. Leg., 2003, effective September 1, 2003.

Cross References:

Exemption application, see Rule Sec. 9.415.
Confidential information for renditions and reports, see Sec. 22.27.
Public Information Act, see ch. 552, Government Code.