Hays County Caps Property Tax Rates For Seniors, Disabled Taxpayers

By, Terra Rivers, Managing Editor

 

During Tuesday’s Hays County Commissioners weekly meeting the court passed a resolution to cap property tax rates for disabled taxpayers and seniors who are 65 years or older.

 

By capping property tax rates, individuals living on fixed incomes, like disabled or retired individuals, would no longer worry about their homes becoming unaffordable.

 

Once passed, no changes could be made to the proposition.

 

“It’s important we do our best to create an environment of certainty and stability,” Commissioner Will Conley, said. “In 2006 and 2007, we doubled the exemptions in this county for seniors. We created the same equivalent exemption for disabled in Hays County that did not exist before.”

 

Article eight, section 1-b, of the Texas Constitution gives “the governing body of any county, city, town, school district and other political subdivision of the state” the ability to exempt or cap the tax rate of disabled taxpayers or individuals 65 years and older, unmarried or married, in their district. 

 

Judge Bert Cobb stated he agreed with the cap, but recused himself stating that since he would have an age advantage.

 

Originally, Precinct 4 Commissioner, Ray Whisenant agreed with the resolution, but also agreed with Judge Cobb, to recuse himself. Later in the discussion, Whisenant decided he would rescind his recusal, and voted for the resolution.

 

Commissioner Mark Jones, Precinct 2, was the only “no” vote and had concerns about the possible tax freeze could not be reversed.

 

“I know a lot of seniors that say it is easier for them to pay their taxes than when they were starting out with young families,” Jones said.

 

As the discussion went around to each of the commissioners, Commissioner Conley said it was a moral and philosophical issue for him; when the majority of individuals reach 65, it becomes a moral factor.

 

Commissioners believe residents of Hays County could prepare for them with a level of certainty with this selected group on fixed incomes.

 

Commissioner Debbie Gonzales Ingalsbe said that the rate freeze will only cover the county portion of a homeowner’s tax bill. It will not cover any other items included in property tax bills, and those that qualify for the tax rate cap will still be liable for all property taxes from other entities.

 

Now that the item has been adopted, this commissioner’s court, nor any court in the future can overturn the decision or reverse it.

 

Currently Hays County has 11,000 of the Homestead Exemptions, with 1,000 being disabled and 10,000 seniors.

**For those taxpayers that already have the Homestead and Over 65 or Homestead and Disabled Person exemptions, there is no other application they have to fill out.**

Tax Assessor-Collector, Luanne Caraway, said the data would be calculated by the individuals who qualify for the county’s current Homestead Exemption, but most eligible individuals do not apply for it. She believes the number of applications would increase if the county does adopt additional exemptions.

**A person who qualifies as both age 65 or older and disabled does not qualify for both, but must choose which exemption to claim.**

Several years ago, Texas mandated and voted in create a state statute that school taxes are “capped.”

 

Find Texas School Tax Explained-Texas Comptroller Below

 

All Texas schools taxes are capped by state statute. It was mandated by the state and those tax caps have been in place for many years. 

 

“The thing about it is this is something we can do, as a court, to give a little bit of relief to people who deserve it and who have earned it,” Judge Bert Cobb said. “They’ve paid their taxes; they’ve done been part of our community, and I hate to lose people who have contributed so much to the life of Hays County.”

 

[gview file=”https://smcorridornews.com/wp-content/uploads/2016/09/Texas-School-Tax-Explained-TX-Comptroller.pdf”]

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Clarifications…

-The article states that the “rate” will be frozen, which is not the case.  It is the amount of tax being charged for the County Government only that will be capped, beginning with what the owner paid in 2016 (this does not include municipalities, school districts, special districts, etc., unless that entity has also instituted a “cap.” 

For taxpayers with both the Homestead and Over 65 exemptions or Homestead and Disabled Person exemptions, whatever amount they paid to the County for 2016 will be ‘capped’ going forward.  The only exception to this is added value. 

If for example they add a porch or an outbuilding, this value will be calculated on top of the capped amount. 

– Disabled Veterans fall under a different part of the code and that was not part of what was adopted.

This applies to disabled taxpayers that meet the definition of disabled for the purpose of receiving disability insurance benefits under the Federal Old-Age, Survivors and Disability Insurance Act.

A person who qualifies as both age 65 or older and disabled does not qualify for both, but must choose which exemption to claim. 

– For those taxpayers that already have the Homestead and Over 65 or Homestead and Disabled Person exemptions, there is no other application they have to fill out. 

They will automatically receive the benefit of the cap.  New Homestead/Over 65 or Homestead/Disabled Persons applying for these exemptions would do so as usual through the Hays Central Appraisal District.