Property owners' taxes are based on the most current year's market value minus applicable exemptions. The appraised value of a residence homestead for a tax year is limited to the lesser of either its market value or the sum of the market value of any new improvements and 110% of the appraised value of the preceding year. The 10% increase is cumulative, that is 10% times the number of years since the property was last appraised. Therefore, if a homestead appraised value increases by 15% in two yers, all of the increase can be added if the homestead was not appraised in the previous year.
A 10% limitation takes effect for a residence homestead on January 1 of the tax year following the first tax year the owner qualifies the property for the residence homestead exemption. The 10% limitaiton ends on January 1 of the first tax year that neither the owner nor the owner's spouse or surviving spouse qualifies for the homestead exemptions. |
