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Homestead Deferral on Appreciating Values

Homeowners Have Payment Options for Property Taxes on Appreciating Home Values  

Texas homeowners may postpone paying the current property taxes due on the appreciating value of their homes by taking advantage of a payment option called “Deferred Collection of Taxes on Appreciating residence homestead (Tax Code 33.064).

Texas Comptroller of Public Accounts Form 50-274 allows tax relief by allowing homeowners to pay the property taxes on 105 percent of the preceding year’s appraised value of their homestead, plus the taxes on any new improvements to the homestead. The remaining taxes are postponed - but not cancelled - with interest accruing at 8 percent per year.

Once the homeowner files the tax deferral affidavit with the appraisal district, no taxing unit can start or continue a lawsuit for the deferred taxes as long as that person owns and lives in the home and the taxes on the 105 percent are paid. When the homeowner no longer owns or lives in the home, the deferred taxes and interest become due. If the taxes are not paid, taxing units can than sue to collect the deferred taxes and interest. Additional penalties are possible.

For complete details about deferring taxes on the appreciating value of your home. contact the Angelina County Appraisal District at 936-634-8456. The Property Tax Assistance Division of the Comptroller’s office can also answer your question at 1-800-252-9121 or visit the Comptroller’s website at http://www.window.state.tx.us/taxinfo/proptax/