The exemption is not automatic and physical damage must meet a minimum degree of 15% to qualify.
Below are the Damage Levels as set by Section 11.35 of the Texas Property Tax Code:
|Level||Damage Assessment||Damage Description||Exemption Percentage|
|I||15% < 30%||Minimal, may continue to be used as intended||15%|
|II||30% < 60%||Nonstructural damage and waterline < 18″ above floor if flooded.||30%|
|III||60% < 100%||Significant structural damage and waterline 18″+ above floor if flooded.||60%|
|IV||100%||Total loss; repair is not feasible.||100%|
The amount of the exemption is determined by multiplying the building or personal property value, as applicable, by the exemption percentage based on the damage assessment level and is then multiplied by a proration factor (the number of days remaining in the tax year after the date the governor declares the disaster is divided by 365).
Sample disaster exemption calculation:
A $200,000 home received $40,000 in physical damage from burst pipes that resulted in nonstructural damage.
- $40,000 / $200,000 Home Value = 20%.
- Damage assessment level 1
- $200,000 Home value times 15% exemption percentage = $30,000
- $30,000 time the proration factor (0.2986) = $8,958 exemption amount for tax year 2021.
- Exemption will expire January 1, 2022
A $200,000 home received $29,000 in physical damage from burst pipes that resulted in nonstructural damage.
- $29,000 / $200,000 Home Value = 14.5%.
- Damage does not meet the minimum threshold.
- No exemption will be applicable to this property.
The completed form and supporting documentation of damage should be mailed 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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