Tax & Accounting Blog

Property Tax Changes and Exemptions in Texas

Blog, ONESOURCE, ONESOURCE Property Tax June 25, 2013

Texas — Exemption for Offshore Spill Response Containment Systems

Offshore spill response containment systems can qualify for a personal property tax exemption if they meet at least one of the following criteria:

  • Used, constructed, acquired, stored, or installed as part of an offshore spill response containment system.
  • Solely used for the development, improvement, storage, deployment, repair, maintenance, or testing of offshore spill response containment system.
  • If the system is being stored while not in use in a county bordering on the Gulf of Mexico or another body of water adjacent to the Gulf of Mexico.

 Texas — Amendments to Property Serving the Homeless Population

Texas legislature amends the following exemption requirements for property owned by charitable organizations providing services to the homeless:

  • The organization must be more than 12 years old.
  •  The property can be located within a municipality with a population of more than 750,000 and less than 850,000.
  • The exemption applies to real property regardless of whether the real property includes a building.

 Texas — Property — Solar energy property.

Chief appraisers are now required to use the cost method of appraisal to determine the market value of commercial solar energy property  constructed or installed on or after January 1, 2014. There is a state-mandated 20% depreciation floor on the property.

 Texas —Motor Vehicle Inventory Exemption

Motor vehicle dealers are exempt from motor vehicle inventory tax beginning on or after 1/1/2014 if they meet the following criteria:

  • Dealer does not sell taxable motor vehicles.
  • Dealer’s total motor vehicle only inventory for the 12-month tax year period is 25% or less of the total revenue, or
  • Dealer did not sell a motor vehicle outside of another dealer during the prior tax year and estimates current tax year’s total annual inventory sales will be 25% or less of the total revenue.
  • Dealer files a declaration with the appraiser and collector by August 31 of the prior year that they elect to not be treated as a dealer for the current tax year.
  • Dealer files inventory on a current rendition to the appraiser.