Gaut Appraisal Blog

Landowners in the Amarillo, TX, Potter County and other target areas throughout the state are eligible for a variety of tax incentives. These incentives, often given in the form of an exemption, offer those willing to relocate to Texas multiple opportunities to save. Generally, incentive programs require that a property be assessed, and then a specific portion of the property's value is deducted from the assessed value for tax purposes. Tax incentive can be applied to property tax for up to 10 years, depending on the type of exemption a homeowner qualifies for. They are designed to motivate business and homeowners to purchase properties in certain areas, as a mean to encourage economic growth.

Homestead Tax Incentive

Image credited to biggerpockets.com

Homestead tax incentives offer a discounted tax rate for those who choose to make their newly purchased property in Texas their primary residence. Homestead exemptions can be claimed to reduce the total appraised valuation up to 20 percent for tax purposes. Exactly how great the exemption percentage is depends on which Amarillo school district you live in. To qualify for the homestead exemption the property can total more than 20 acres, and must include a single family residence.

Social Security Related Tax Incentives

Those who are over the age of 65 and drawing social security, or who qualify for and receive social security disability payments, can qualify for a specialty tax incentive beginning the year they start drawing social security and continuing for as long as they are eligible for the standard homestead exemption. This exemption offers a $10,000 reduction in the appraised value of the property.

Renewable Energy Tax Incentive

The Texas Tax Code rewards those who upgrade their home to make it more energy efficient. Those who install solar power, wind power, biomass systems, anaerobic digestion systems, or make other energy friendly device installations are eligible to deduct the cost of the upgrade from the properties appraised valuation, in order to offset the cost of improvement.

Wildlife Management Tax Incentives

Those in the Amarillo area, who own more than 20 acres and cannot qualify for the homestead exemption, may instead be interested in claiming a wildlife exemption. Those who are willing to actively manage a section of their property in keeping with the local conservation agency's breeding goal and conservation effort are eligible for a tax break. Property must be appraised by May 1st of any given year (do it now!), and all application forms completed (that's why), annually to qualify. 

John B. Dudley, SRA is an SRA-designated commercial and residential appraiser, with 35 years experience. serving the Texas pandhandle, including Amarillo TX Canyon TX Hereford TX Pampa TX Dumas TX Panhandle TX Borger TX Claude TX Dalhart TX Friona TX.
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