TAXING MATTERS
CHERYL E . JOHNSON , PCC Galveston County Tax Assessor Collector
& Voter Registrar
DAMAGE TO BUSINESS OR RESIDENCE FROM WINTER STORM URI ?
On February 12 , 2021 , Governor Abbott issued a disaster declaration in response to an imminent threat of severe winter weather . The prolonged freezing temperatures that followed , combined with lack of electrical power , resulted in an estimated 50 deaths and $ 125B in property damage across the State .
Texas appraisal districts determine the market value of property as of the January 1st condition . Therefore , for those suffering damage , a temporary disaster exemption must be applied for no later than 105 days from the date of the declaration or , in the case of the recent winter storm , no later than May 28th . The exemption applies to all real property types and business personal property ( rendition must be filed in 2021 ). Damage must be at least 15 % of the market value of the improvement value and may be as high as 100 % if the damage caused a total loss meaning repair is not feasible ( see levels below ).
The chief appraiser will determine whether the property qualifies for the exemption and will assign a damage assessment rating based on the information provided by the owner . Supporting information includes any documentation provided by a county emergency management authority , FEMA or any other source considered appropriate such as an insurance adjuster or other written repair estimate .
disaster . The proration factor for Uri is 0.88 ( 322 days ÷ 365 days ).
For example , a $ 100,000 improvement with $ 20,000 in damage from burst pipes would result in the following :
$ 20,000 ÷ $ 100,000 |
= |
20 % ( Damage Assessment Level I ) |
$ 100,000 x 15 % |
= |
$ 15,000 |
$ 15,000 x 0.88 |
= |
$ 13,200 exemption ( reducing the 2021 taxable value ) |
This exemption would be in addition to any other exemptions existing on the property and would expire January 1 , 2022 ( or the first year in which the property is reappraised ). After application is received and reviewed , the appraisal district must send written notice of the approval , modification , or denial to the property owner . Applications may be found at either of the links shown below ( or galcotax . com or galvestoncad . org ): http :// www . galvestoncountytx . gov / to / Documents / Temporary % 20Exemption % 20Property % 20 Damage % 2050-312 . pdf http :// www . galvestoncad . org / data /_ uploaded / file / Forms / Temporary % 20Exemption % 20Property % 20 Damage % 2050-312 % 20 . pdf
This exemption is the result of House Bill 492 ( 86th Legislative Session ) and Texas Constitutional
LEVEL |
EXEMPTION % |
DAMAGE ASSESSMENT |
DAMAGE DESCRIPTION |
I |
15 % |
15 % but < 30 % |
Minimal ; may be used as intended |
II |
30 % |
30 % but < 60 % |
Nonstructural ; water < 18 ” above floor if flooded |
III |
60 % |
60 % but < 100 % |
Significant structural damage ; water 18 ” above floor |
IV |
100 % |
100 % |
Total loss ; repair is not feasible |
The dollar amount of the exemption is determined by multiplying the building ( or business personal property ) value by the exemption percentage as shown above then prorating for the number of days remaining in the tax year after the date the Governor declares the
Amendment Proposition Three that was overwhelmingly approved by voters November 5 , 2019 . Thank your State Representative and Senator . Efforts to pass disaster legislation began right after Hurricane Ike in 2009 .
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