Montgomery Central Appraisal District Reminds Property Owners of Disaster Exemption
Due to the Tropical Storm/ Hurricane Nicholas, Governor Abbott declared Montgomery County a disaster area on September 13, 2021.
The Montgomery Central Appraisal District (MCAD) is reminding property owners that they may qualify for a temporary disaster exemption if they experienced physical damage to their property resulting from Tropical Storm/ Hurricane Nicholas. The exemption is not automatic and physical damage must meet a specific degree to qualify.
During the 86th Texas Legislative Session, the Texas Property Tax Code was amended to potentially allow property owners a temporary disaster exemption. Section 11.35 of the Tax Code allows a qualified property that is at least 15 percent damaged by a disaster to receive a temporary exemption of a portion of the appraised value of the property. Qualified property includes:
- tangible personal property used for income production if the owner filed a rendition;
- residential buildings (homes), commercial buildings (businesses), industrial buildings (manufacturing), multi-family buildings (apartments), and other real property buildings; and
- certain manufactured
The exemption is not automatic and damage must meet a minimum degree of 15% to qualify, for example: On qualified property valued at $200,000 the damages would have to be estimated at $30,000 or more. ($200,000 x 15% = $30,000)
The appraisal district determines if the property qualifies for the temporary exemption and assigns a damage assessment rating or exemption percentage of Level I (at least 15% damaged), II (at least 30% damaged), III (at least 60% damaged), or IV (100% damaged – total loss) based upon available information. The district may rely on information from a county emergency management authority, the Federal Emergency Management Agency (FEMA), or other appropriate sources like insurance adjusters or repair estimates when making this determination. The exemption will be prorated based on the date of the declared disaster.
If a taxing unit had not adopted a 2021 tax rate before September 13, 2021, the property owner must apply for the temporary exemption no later than 105 days after the governor declares a disaster area. The temporary exemption application must be filed no later than December 27, 2021.
If a taxing unit adopted a 2021 tax rate prior to September 13, 2021, the Governing Body of the taxing unit must adopt the exemption within 60 days of the date of the disaster. If a taxing unit adopts the exemption, property owners will have 45 days from the action of the governing body’s action to apply for the exemption.
As a result of the previous two scenarios, if a property qualifies for the exemption, it is possible that the exemption may not be applied to all taxing units.
The temporary exemption, if granted, expires on January 1 of the first tax year in which the property is reappraised.
For more information and to obtain a temporary disaster application form visit the Tropical Storm/ Hurricane Nicholas section of MCAD’s website (WWW.MCAD-TX.ORG). The completed form and supporting documentation of damage should be mailed to:
Attention: Disaster Exemption (Nicholas)
P.O. Box 2233
Conroe, TX 77305.
For further information, contact MCAD at 936-756-3354.
Conroe, TX 77305
8:00 a.m. - 5:00 p.m.
Pursuant to Sec. 11.1825(r) of the Texas Property Tax Code, The Montgomery County Appraisal District gives public notice of the capitalization rate to be used for the 2021 Tax Year to value properties receiving exemptions under this section. Rent restricted properties vary widely. These variations can have an effect on the valuation of the property. A basic capitalization rate of 10.0% will be used to value these properties; although adjustments may be made on the individual property characteristics and the information provided to the chief appraiser as required under Sections 11.182(d) and (g) of the Property Tax Code.
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