Res 1991-052 - Laserfiche WebLink

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TAX INFORMATION Ad Valorem Tax Law The appraisal of property within the City is the responsibility of the Hays County Appraisal District. Excluding agricultural and open-space land, which may be taxed on the basis of productive capacity, the Appraisal District is required under the Property Tax Code to appraise all property within the Appraisal District on the basis of 10096 of its market value and is prohibited from applying any assessment ratios. The value placed upon property within the Appraisal District is subject to review by an Appraisal Review Board, consisting of three members appointed by the Board of Directors of the Appraisal District. The Appraisal District is required to review the value of property within the Appraisal District at least every three years. The City may require annual review at its own expense, and is entitled to challenge the determination of appraised value of property within the City by petition filed with the Appraisal Review Board. Reference is made to the VTCA, Property Tax Code, for identification of property subject to taxation; property exempt or which may be exempted from taxation, if claimed; the appraisal of property for ad valorem taxation purposes; and the procedures and limitations applicable to the levy and collection of ad valorem taxes. Article VIII of the State Constitution ("Article VIII") and State law provide for certain exemptions from property taxes, the valuation of agricultural and open-space lands at productivity value, and the exemption of certain personal property from ad valorem taxation. Under Section l-b, Article VIII, and State law, the governing body of a political subdivision, at its option, may grant: (1) An exemption of not less than $3,000 of the market value of the residence homestead of persons 65 years of age or older and the disabled from all ad valorem taxes thereafter levied by the political subdiv ision; (2) An exemption of up to 2096 of the market value of residence homesteads; minimum exemption $5,000. In the case of residence homestead exemptions granted under Section l-b, Article VIII, ad valorem taxes may continue to be levied against the value of homesteads exempted where ad valorem taxes have previously been pledged for the payment of debt if cessation of the levy would impair the obligation of the contract by which the debt was created. State law and Section 2, Article VIII, mandate an additional property tax exemption for disabled veterans or the surviving spouse or children of a deceased veteran who died while on active duty in the armed forces; the exemption applies to either real or personal property with the amount of assessed valuation exempted ranging from $1,500 to a maximum of $3,000. Article VIII provides that eligible owners of both agricultural land (Section I-d) and open-space land (Section 1-d-I), including open-space land devoted to farm or ranch purposes or open-space land devoted to timber production, may elect to have such property apprqised for property taxation on the basis of its productive capacity. The same land may not be qualified under both Section l-d and 1-d-1. Nonbusiness vehicles, such as automobiles or light trucks, are exempt from ad valorem taxation unless the governing body of a political subdivision elects to tax this property. Boats owned as nonbusiness property are exempt from ad valorem taxation. Article VIII, Section l-j of the Texas Constitution authorizing an ad valorem tax exemption for "freeport property" was approved November 7, 1989. Freeport property is goods detained in Texas for 175 days or less for the purpose of assembly, storage, manufacturing, processing or fabrication. The amendment provides that the exemption wilJ be effective for the 1990-91 fiscal year unless the City takes action to tax such property prior to January 1, 1990 and that the exemption will be effective for all future tax years unless the City takes action prior to April I, 1990 but after January 1, 1990. Decisions to continue to tax may be reversed in the future; decisions to exempt freeport property are not subject to reversal. The City has not taken action to tax freeport property in the 1990-1991 fiscal year and is studying the issue with respect to subsequent years. The City grants an exemption to the market value of the residence homestead of persons 65 years of age or older of $10,000. The City has not granted an additional exemption of the market value of residence homesteads. Ad valorem taxes are not levied by the City against the exempt value of residence homesteads for the payment of debt; and the City does not tax nonbusiness vehicles. - 7-