Homestead Exemption Texas

[Daniel A Lee Kim]

Hello everyone,

I'm relocating to Texas on order (active duty) and am about to purchase a SFH which I intend to live in. Can I file Homestead Exemption for this property given I get Texas driver's license? What would happen when I get order to relocate again? Will I have to remove that exemption if I'm renting that property out?

Any advise would be appreciated!

[Jim Cummings]

@Daniel A Lee Kim.  YES - I would think the Exemption will be eventually removed as sooner or later, someone at Tax Authority will make the connection your Address for Tax Purposes is NOT the same address as the Homestead Property.

According to the rules for filing for Homestead Exemption - you must OWN & LIVE in the Property on January 1 of the year you file for Homestead Exemption.  For Example, you bought the Home and took possession on December 31, 2017 - you meet the basic requirement for filing for a Homestead Exemption in 2018. If however, your Closing was delayed until January 2, 2018, you do NOT meet the requirement to file for Homestead Exemption as you did not OWN & LIVE in the property as of January 1, 2018. 

There is NO Proration of the Exemption. You either live there on January 1 and are eligible for the Exemption, or you don't live there on January 1 and are NOT eligible. I think the reason for January 1, is that date is used by the Taxing Authorities as the date for determination of Taxable Value.  

Once you receive a Homestead Exemption, you DO NOT have to refile for the Exemption in subsequent years. It's considered Permanent until you no longer live in the property.