RENDITION OF REAL PROPERTY INVENTORY

 This rendition covers the property you owned on January 1 of this year. You must file this rendition with the Llano Central Appraisal District after January 1 and not later than April 15 of this year. On written request, the chief appraiser must extend the deadline to May 15. You may receive an additional 15-day extension if you request it in writing and show good cause for the extension.

Use the rendition form to report residential real property that was part of your inventory on January 1, 2010. You must file a separate rendition form for each subdivision or group of contiguous properties that you own. Don’t list a property unless it meets these tests: (1) it is a residential property; (2) it hasn’t ever been occupied as a residence; (3) it hasn’t been leased, rented, or otherwise used to produce income since the beginning of the year; and (4) you have held it for sale since the beginning of the year. You must indicate the description of each property, including the appraisal district account number if the district has assigned separate numbers for each property, the individual property legal description, improvement area, percent complete on January 1, and the ASKING PRICE for the property.

TEXAS BUSINESSES HAVE APRIL 15 DEADLINE FOR

FILING PROPERTY TAX RENDITIONS OR FACE PENALTY

(AUSTIN)—Texas Comptroller Susan Combs today reminded Texas businesses to render their property with county appraisal districts by April 15.  To render is to list the taxable inventory, furniture and fixtures, machinery and equipment and other property that a business owned or managed as of January 1, 2010.  Appraisal districts may use the information to set property values.

"Rendition helps county appraisal districts appraise business property fairly and accurately," Combs said.  "If some businesses are not paying their fair share of property tax, that places a greater tax burden on other hardworking business owners and homeowners."

Rendering allows property owners to record their opinion of their property’s value and ensures that the appraisal district sends them a notice before changing a value on their property.  Owners do not have to render exempt property, such as church property or farmer’s equipment used for farming.

If more than one appraisal district appraises a property, the property owner should render in each appraisal district office.

Property owners who need more time to file their renditions may file a written request with the chief appraiser on or before April 15 to receive an automatic extension to May 15.  The chief appraiser may also grant an additional 15 days after the May 15 deadline if necessary.

The Comptroller’s office also reminded owners whose property was damaged by a storm, flood or fire last year may file a special decreased value report that could lower their final tax bills.  Property owners have until April 15 to file the decreased value report, which indicates their property’s condition on January 1, 2010.

Rendition forms and decreased value report forms are available from the appraisal district or the Comptroller’s office.  The rendition forms ask for the property owner’s name and address, general description of property by type or category and the property’s location.  For property with an aggregate total of more than $20,000, the property owner also must provide a general estimate of quantity of inventory and the owner’s good faith estimate of the property’s market value.  The owner may provide the historical cost when new and the year the property was acquired rather than the good faith estimate.

For more information about rendering property, deadline extensions, penalties and rendition forms, taxpayers may contact their county appraisal district office, e-mail the Comptroller’s property tax assistance division at ptad.cpa@cpa.tx.state.us or call the property tax hotline at 1-800-252-9121.  In Austin, call (512) 305-9999.  The Comptroller’s forms are available on the Web at www.window.state.tx.us/taxinfo/taxforms/02-forms.html.

NON-PROFITS, SOME BUSINESSES FILE

FOR TAX EXEMPTIONS BY MAY 1

"Non-profit organizations may qualify for a total exemption from property taxes by applying for the exemption no later than May 1, 2010," said the chief appraiser of the Llano Central Appraisal District.

The May 1 deadline also applies to businesses that are receiving tax abatements with taxing units; to firms that ship inventory out of Texas and may be eligible for the "freeport" exemption on certain goods in transit; and to businesses that acquired pollution control property.

Property tax exemptions are available to non-profit charitable, youth development, religious organizations, non-profit private schools, cemeteries, veterans’ organizations, historical and archeological sites and other organizations.  Requirements vary for different types of organizations as set out in the Texas Constitution and the Property Tax Code.  Cemeteries, charitable organizations, youth development associations, religious organizations and other non-profit organizations may receive a property tax exemption immediately upon buying or acquiring a property during the year and meeting the exemption qualifications.

The chief appraiser noted that cemeteries, charitable organizations, youth development organizations, religious organizations and non-profit private schools, once granted tax exemptions, do not have to reapply for the exemption each year unless the chief appraiser asks them to file again.  However, they also must reapply if their exempt property changes ownership, if their qualifications for exemption change or if they acquire new property.  The law requires annual application for all other types of exempt organizations.

Property owners who own mineral property or business personal property worth less than $500 are exempt from property taxes on those properties.  No application is required for exempting these small accounts valued at less than $500.  A property owner’s mineral property accounts are added together to determine if the total value in each taxing unit is less than $500 and exempt.  If the total value in any taxing unit exceeds $500, then the property is taxable.  The same process is used for adding together a property owner’s business personal property accounts by taxing unit to determine if the properties are worth less than $500 and exempt from property taxes.

"If a non-profit organization or a business with tax abatements, freeport goods or pollution control property has any questions about tax exemptions, it should contact the appraisal district office before May 1," the chief appraiser added.  Additional information is available from the Llano Central Appraisal District office at 103 East Sandstone, Llano, Texas, Phone 325-247-3065, Email llanocad@verizon.net.

PRODUCTIVITY APPRAISAL REDUCES PROPERTY TAXES ON FARMS AND RANCHES

Farmers and ranchers may be eligible for property tax relief on their land.  They may apply for a special, lower appraisal of their land, based on what the land will produce rather than what it would sell for in the open market, said the chief appraiser of the Llano Central Appraisal District.

"The Texas Constitution provides for two types of agricultural productivity appraisal," the chief appraiser said.  Article 8, Sec. 1-d-1, addresses what is known as agricultural appraisal.  Article 8, sec. 1-d, also addresses agricultural appraisal but has different qualification requirements.  Because the qualifications of the owner are more stringent, property owners rarely apply for agricultural appraisal under Section 1-d.

Landowners must file for special appraisal at the appraisal district office by May 1.  Those who must file this year include owners of land qualified for 1-d appraisal, landowners whose property did not previously receive 1-d-1 appraisal and new owners of qualified land.  The appraisal district must accept late-filed 1-d-1 appraisal applications until the day before the appraisal review board approves the 2010 appraisal records, but late applications will draw a penalty. 

"The requirements for applying and qualifying both the land and the owner are different for the two types of appraisal," the chief appraiser said.

Most property owners apply for 1-d-1 appraisal.  To qualify, the owner must use the land for agriculture or growing timber.  This form of appraisal does not restrict ownership to individuals and does not require agriculture to be the owner’s primary business.

This special appraisal requires that the land’s use in a qualifying agricultural or timber purpose meets the degree of intensity generally accepted in the area.  Owners must show that they devoted the land’s use principally to a qualifying use for at least five of the preceding seven years.

The law also provides that a property owner may use the land for wildlife management to receive the special appraisal, if the land had been qualified for agriculture in the preceding year.  Land under wildlife management must meet acreage size requirements and special use qualifications.

Under 1-d appraisal, the owner must file an application each year.  The owner must be an individual-not a corporation, partnership, agency or organization.  The land must have had an agricultural use for at least three years.  The owner’s primary job and source of income must be agriculture.

"Landowners should know," the chief appraiser said, "that the law provides specific penalties for taking qualified land out of agricultural or timber production."

The rollback tax is the difference between the taxes paid under productivity appraisal and the taxes that would have been paid if the land had been put on the tax roll at market value, the chief appraiser explained.  And, rollback taxes include interest charges.

Under 1-d-1, an owner triggers a rollback by changing the land’s use to a non-agricultural use.  The rollback taxes are based on the five tax years preceding the year of the change.

Under the 1-d appraisal, if the owner sells the land or changes its use, the rollback extends back for the three tax years before the year in which the change or sale occurs.

Owners must apply for productivity appraisal with each appraisal district in which they have land.  Failure to do so could result in paying taxes on the land’s full market value. 

Additional information and application forms are available from the county appraisal district office.  The staff will help landowners determine if their property qualifies for special appraisal. 

For more information, landowners may contact the Llano Central Appraisal District at 103 East Sandstone, Llano, Texas Phone: 325-247-3065 Email:  llanocad@verizon.net.

PROPERTY TAX INFORMATION AVAILABLE FROM APPRAISAL OFFICE

The chief appraiser for the Llano Central Appraisal District, offers property owners a 2009 pamphlet called Texas Property Taxes:  Taxpayers’ Rights, Remedies & Responsibilities to help them save on their property taxes.

Published by the Texas Comptroller Susan Comb's office, the Remedies pamphlet explains how the property tax system in Texas works and tells property owners about possible tax savings.

The chief appraiser noted that the pamphlet addressed property taxes collected by all types of taxing units- counties, cities, school districts and special districts (such as municipal utility, junior college, and hospital districts).

"Homeowners may file for various property tax exemptions offered by taxing units on residence homesteads," the chief appraiser said.  In Texas, a homestead is generally the house and yard used as the owner’s principal residence.  The pamphlet explains each exemption and how to apply for it.

For example, all homeowners who owned and lived in their homes on January 1 may file for a $15,000 general exemption from their home’s value for school taxes.  In addition, certain disabled homeowners and those aged 65 and older may qualify for an additional $10,000 school exemption from the value of their homes.

"A tax freeze, or ceiling, for school taxes is a benefit for homeowners once they become 65 years old or disabled," the chief appraiser said.  "State law provides that these homeowners may apply during the year, rather than waiting until the next January 1."

"An elderly or disabled homeowner’s taxes that pay for public schools cannot increase above the total school tax amount on that home in the first year that the homeowner receives the age 65 and older homeowner exemption," the chief appraiser continued.

The chief appraiser reminded these homeowners that the taxes may increase if the homeowner improves or adds to the house, such as adding a room or patio.

The law provides that this school tax benefit extends to the surviving spouse of an age 65 and older homeowner if the spouse is at least 55 years old at the time of the qualified spouse’s death and lives in the home as the principal residence.

The chief appraiser pointed out that homeowners age 65 and older or disabled do not have to reapply for the exemption this year if they received the exemption last year.  Homeowners turning 65 during the year or becoming disabled may file for the school exemption up to one year from the date they turned 65 or became disabled, owned the home, and lived in it as their principal residence.  Only those who did not have the exemption and tax ceiling in 2009 must apply in 2010.

The chief appraiser added that any taxing unit may offer a local-option exemption that allows a percentage reduction in each residence homestead’s appraised value.  In 2010, a taxing unit may exempt up to 20 percent of each qualified home’s appraised value.

Comptroller Comb’s Remedies pamphlet also describes other exemptions available, such as those for disabled veterans and other disabled persons.

Productivity appraisal is another type of tax relief available to agricultural land or timberland owners.  It is available in two forms, referred to by its Texas Constitution subsection of Article 8: "1-d" or agricultural-use appraisal and "1-d-1" or open-space land appraisal.

Landowners who wish their land to receive 1-d appraisal must apply each year.  The landowner must file a signed, sworn application with the chief appraiser by May 1.  However, owners of land receiving 1-d-1 appraisal do not need to reapply, unless the chief appraiser requests in writing that they do so.

Because the qualifications are less strict, many landowners choose to apply for 1-d-1.  However, if the land’s use changes to a non-agricultural one, the period for recapturing lost taxes is five years for 1-d-1.  For 1-d, the recapture time is three years for change of ownership or use.

"Appraisal district staff can offer more information about special land appraisal and exemptions," the chief appraiser said.

He said the Remedies pamphlet also contains information about protesting to the appraisal review board (ARB).  The ARB is a local citizen board that hears taxpayer protests to ensure that property values are fair and uniform.  There is no fee to protest to the ARB.

Another section deals with how voters can petition for an election to reduce the amount of a tax increase adopted by any taxing unit.

"I urge all property owners in the Llano Central Appraisal District to read Comptroller Comb’s pamphlet and learn about the property tax system and all possible property tax relief," the chief appraiser said.  "Remember, taxpayers must file exemption applications with the appraisal office by May 1 and any type of protest by May 31 this year."

The pamphlet is available on line at www.llanocad.com or the Llano Central Appraisal District office located at 103 E. Sandstone in Llano or phone (325) 247-3065.

HOMESTEAD EXEMPTIONS REDUCE PROPERTY TAX BILLS

Homeowners can reduce their property tax bills in 2010 by taking advantage of homestead exemptions.  Application forms are available at the Llano Central Appraisal District.

The chief appraiser informs homeowners that Texas law allows them to file a one-time application for homestead exemptions.  These exemptions reduce the appraised value of the home.  "You do not have to pay a fee to file for a homestead exemption," said the chief appraiser.

Property owners who have not received the general homestead exemption on their homes in which they were living on January 1, 2010, and those who became totally disabled or turn 65, must apply this year to receive their exemptions for 2010.

For the general homestead exemptions, homeowners must own and live in their homes on January 1, 2010.  Homeowners 65 years of age and older and those who become disabled don’t need to own their homes on January 1 to qualify for the age 65 and older or disabled homestead exemptions.  State law provides that they may apply as soon as they turn 65 or become disabled, own the home and live in the home as their principal residence.

State law also allows that if the age 65 and older spouse dies before applying for the age 65 and older exemption, the surviving spouse age 55 or older may apply for the age 65 and older exemption for the deceased spouse.  The same filing deadlines apply.

If a homestead is located in a taxing unit that overlaps into two or more counties the homeowner must apply at each county appraisal district.

A homeowner’s principal residence and land are considered the homestead.  It can include up to 20 acres of land and improvements.  Improvements include the house, a swimming pool, greenhouse or any other structures, as long as the owner uses them for residential purposes.

The chief appraiser said that a property must meet four tests set by law to qualify for the residence homestead exemption.  The person or persons claiming the exemption must own the property on January 1 (homeowners 65 and older or disabled need not own the property on January 1 for the age 65 and older or disabled homestead exemptions only); the property must be designed or adapted for human residence; the owner must use the property as a residence; and the property must be the principal residence of an owner who qualifies for the exemption.

A mobile home, even on leased land, can qualify for the exemption if it meets the four tests.

"A property owner can still qualify for the homestead exemption if part of the residence is rented out or used for other purposes, such as a home business, " the chief appraiser said.  The home will not lose its exemption if the owner moves away temporarily for a period of less than two years, so long as he or she intends to return and doesn’t claim another homestead exemption elsewhere."  A property owner may continue to maintain the residence homestead exemption if the owner is absent from the property for more than two years due to military service outside of the country or residency in a facility probing health, infirmity, or aging service.

Texas law provides several types of exemptions for homeowners.  For school tax purposes, all homeowners may receive a $15,000 general homestead exemption and homeowners 65 and older or disabled receive an additional $10,000 exemption.

The school tax exemption for those homeowners 65 and older or disabled provides a special property tax "ceiling" for school taxes.  While the market value of an elderly or disabled person’s home may fluctuate with the market, the school taxes cannot increase above the tax amount in the first year that person qualified for that homestead for the age 65 and older or disabled exemption.

The tax ceiling can increase, however, if the owner adds an improvement, other than normal maintenance or repair.  When the owner adds a new improvement, such as a room or garage, the new improvement is taxed at its current market value and the current tax rates.  The new taxes are added to the previous tax ceiling to create a new ceiling.

Homeowners 65 and older or disabled may transfer the same percentage of tax savings to a new home.  The homeowner transfers the percentage of school tax paid on the former home, based on the last year the homeowner qualified that home for the tax ceiling, to the new home.  The new tax ceiling is calculated to give the homeowner the same percentage of tax paid as on the former home.  The homeowner may not claim two different homes in the same year.

For example, if the homeowner had a school tax ceiling of $100, but would pay $400 in 2009 school taxes without the tax ceiling, the percentage of tax paid is 25 percent.  If the 2009 school taxes on the new home are $1000, the new tax ceiling would be $250, or 25 percent of $1,000.  The homeowner my request a certificate from the appraisal district where the former home was located that gives information about the tax ceiling. The homeowner gives this information to the appraisal district where the new home is located.

If the elderly homeowner dies, the surviving spouse may apply to keep the school tax ceiling if the surviving spouse was at least 55 years of age when the qualified spouse died.  The surviving spouse also may transfer the tax savings with the school tax ceiling to another homestead, as discussed above.

The county, city or junior college district may decide to set a tax ceiling provision for homeowners 65 and older or disabled.  Each taxing unit’s governing body may decide to grant the tax ceiling provision or the local citizens in a taxing unit may petition for an election to vote on granting the tax ceiling provision in that taxing unit.

Homeowners should notify the chief appraiser when they no longer qualify for the general, age 65 and older or disabled homestead exemptions.  A 50-percent penalty is added to delinquent home taxes if homeowners fail to notify the appraisal district and receive homestead exemptions to which they are not entitled.

Any taxing unit’s governing body may grant an additional optional exemption on the homesteads of disabled or elderly residents, or both.  This optional exemption may be no less than $3,000 from the home’s appraised value and has no limit on the maximum amount.

Taxing units may also offer a local option exemption based on a percentage of a home’s appraised value.  In 2010, any taxing unit can exempt up to 20 percent of the value of each qualified homestead.  No matter what percentage of value the taxing unit adopts, the dollar amount of exemption for any home must equal at least $5,000.

For more information, homeowners may contact the Llano Central Appraisal District at 103 East Sandstone, Llano, Texas Phone: 325-247-3065 Email:  llanocad@verizon.net.

ELDERLY OR DISABLED HOMEOWNERS MAY DEFER PROPERTY TAXES

Texans aged 65 or older or who are disabled may postpone paying delinquent and current property taxes on their homes.  They may take advantage of a tax option called "tax deferral" by signing an affidavit at the Llano Central Appraisal District office.

"If the affidavit is on file, an older homeowner or one who is disabled cannot lose a homestead because of delinquent property taxes," the chief appraiser said.

This special form of tax relief also halts a lawsuit filed to collect delinquent property taxes on an older or disabled Texan’s home, according to the chief appraiser of the Llano Central Appraisal District.  "To stop a delinquent tax suit," the chief appraiser said, "the age 65 and over or disabled homeowner files the deferral affidavit with the court in which the suit is pending."

Once a homeowner files a tax deferral affidavit with the appraisal district, no taxing unit can start or continue a lawsuit for delinquent taxes as long as that person owns and lives in that home.

The law also allows an age 65 and older or disabled homeowner to halt a pending sale to foreclose on the homestead’s tax lien.  And, the law extends the tax deferral to the surviving spouse of an individual who deferred the taxes on the homestead if the surviving spouse was 55 years of age when the deceased spouse died.

The chief appraiser stressed that the tax deferral only postpones paying taxes on the home; it does not cancel them.  During the deferral time, taxes and interest of 8 percent per year continue to add up.  He said, "When the qualified homeowner or qualified surviving spouse no longer owns and lives in the home, the taxes become due.  If the taxes are not paid, taxing units can then sue to collect all the deferred taxes and interest."

There is no penalty on the taxes during the deferral time.  However, filing the deferral affidavit will not forgive penalties that were already due.  Also, if the taxes remain delinquent after the deferral ends, a taxing unit may charge an added penalty if the account goes to a delinquent tax attorney beginning on the 181st day after the deferral ends.

Tax deferral forms are available at the appraisal district office.  "The homeowners should fill out the form and have the signature witnessed by a notary public," the chief appraiser said.  For more information, taxpayers may contact the Llano Central Appraisal District, 103 East Sandstone, Llano, Texas, 78643 or phone (325) 247-3065.  Email: llanocad@verizon.net.

PROPERTY TAX EXEMPTIONS REDUCE DISABLED VETERANS’ TAXES

"Veterans with a service-connected disability may reduce their property taxes in 2010 by filling out a simple exemption form at the Llano Central Appraisal District office," the chief appraiser said.

A veteran’s percentage of service-connected disability determines the size of the exemption.  The exemption ranges from a $5,000 to a $12,000 deduction from the veteran’s property value.  The chief appraiser explained who is eligible for the application:

• a disabled veteran;
• a surviving spouse of a deceased disabled veteran, as long as the spouse remains unmarried;
• a surviving minor child of  a deceased disabled veteran, if the veteran’s spouse does not survive the veteran and if the child is both under 18 and unmarried;
• a surviving spouse of a person killed while on active duty, whether the spouse has remarried or not at application time; and
• a surviving minor child of a person killed while on active duty, if the child is both under 18 and unmarried.

"Any eligible person who has not received this exemption should apply by May 1," the chief appraiser said.  "But, if you received the exemption in 2009, you do not have to reapply in 2010."  Late applications are allowed if filed within one year of paying the taxes on the property or when the taxes went delinquent, whichever date is earlier. 

An applicant may claim the exemption on only one piece of property, such as a home or any other property the applicant owned on January 1.  The applicant must be a Texas resident to qualify.

The appraisal district may require proof of the disability, such as documentation from the Veterans Administration or the branch of the armed service in which the veteran served.  Applicants may need proof of marriage, age or spouse’s or parent’s death.

Obtain an application form and more information about specific qualifications from the Llano Central Appraisal District office at 103 East Sandstone, Llano, Texas 78643 or phone (325) 247-3065.   Email: llanocad@verizon.net.