Tex. Tax Code Section 26.10
Prorating Taxes--loss of Exemption


(a)

If the appraisal roll shows that a property is eligible for taxation for only part of a year because an exemption, other than a residence homestead exemption or an exemption described by Subsection (d), applicable on January 1 of that year terminated during the year, the tax due against the property is calculated by multiplying the tax due for the entire year as determined as provided by Section 26.09 (Calculation of Tax) by a fraction, the denominator of which is 365 and the numerator of which is the number of days the exemption is not applicable.

(b)

If the appraisal roll shows that a residence homestead exemption under Section 11.13 (Residence Homestead)(c) or (d), 11.132 (Donated Residence Homestead of Partially Disabled Veteran), 11.133 (Residence Homestead of Surviving Spouse of Member of Armed Services Killed in Line of Duty), or 11.134 (Residence Homestead of Surviving Spouse of First Responder Killed in Line of Duty) applicable to a property on January 1 of a year terminated during the year and if the owner of the property qualifies a different property for one of those residence homestead exemptions during the same year, the tax due against the former residence homestead is calculated by:

(1)

subtracting:

(A)

the amount of the taxes that otherwise would be imposed on the former residence homestead for the entire year had the owner qualified for the residence homestead exemption for the entire year; from

(B)

the amount of the taxes that otherwise would be imposed on the former residence homestead for the entire year had the owner not qualified for the residence homestead exemption during the year;

(2)

multiplying the remainder determined under Subdivision (1) by a fraction, the denominator of which is 365 and the numerator of which is the number of days that elapsed after the date the exemption terminated; and

(3)

adding the product determined under Subdivision (2) and the amount described by Subdivision (1)(A).

(c)

If the appraisal roll shows that a residence homestead exemption under Section 11.131 applicable to a property on January 1 of a year terminated during the year, the tax due against the residence homestead is calculated by multiplying the amount of the taxes that otherwise would be imposed on the residence homestead for the entire year had the individual not qualified for the exemption under Section 11.131 during the year by a fraction, the denominator of which is 365 and the numerator of which is the number of days that elapsed after the date the exemption terminated.

(d)

Subsection (a) does not apply to an exemption for land received by an organization under Section 11.181 (Charitable Organizations Improving Property for Low-income Housing), 11.182 (Community Housing Development Organizations Improving Property for Low-income and Moderate-income Housing: Property Previously Exempt), or 11.1825 (Organizations Constructing or Rehabilitating Low-income Housing: Property Not Previously Exempt) that terminated during the year because of the sale by the organization of a housing unit located on the land if:

(1)

the housing unit is sold to a family meeting the income-eligibility standards established by Section 373B.006 (Qualifications of Purchasers or Lessees of Housing Units), Local Government Code;

(2)

the organization retains title to the land on which the housing unit is located; and

(3)

before the date on which the housing unit is sold, the organization is designated a community land trust by the governing body of a municipality or county as provided by Section 373B.002 (Creation or Designation), Local Government Code.
Acts 1979, 66th Leg., p. 2282, ch. 841, Sec. 1, eff. Jan. 1, 1982. Amended by Acts 1983, 68th Leg., p. 5002, ch. 896, Sec. 1, eff. Jan. 1, 1984; Acts 1997, 75th Leg., ch. 1039, Sec. 30, eff. Jan. 1, 1998; Acts 1997, 75th Leg., ch. 1059, Sec. 5, eff. Jan. 1, 1998; Acts 1999, 76th Leg., ch. 62, Sec. 16.06, eff. Sept. 1, 1999; Acts 2001, 77th Leg., ch. 1061, Sec. 1, eff. Jan. 1, 2002; Acts 2003, 78th Leg., ch. 411, Sec. 5, eff. Jan. 1, 2004.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 597 (S.B. 201), Sec. 2, eff. January 1, 2012.
Acts 2013, 83rd Leg., R.S., Ch. 122 (H.B. 97), Sec. 5, eff. January 1, 2014.
Acts 2013, 83rd Leg., R.S., Ch. 138 (S.B. 163), Sec. 5, eff. January 1, 2014.
Acts 2015, 84th Leg., R.S., Ch. 1236 (S.B. 1296), Sec. 21.002(28), eff. September 1, 2015.
Acts 2017, 85th Leg., R.S., Ch. 511 (S.B. 15), Sec. 5, eff. January 1, 2018.
Acts 2021, 87th Leg., R.S., Ch. 1020 (S.B. 113), Sec. 3, eff. September 1, 2021.

Source: Section 26.10 — Prorating Taxes--loss of Exemption, https://statutes.­capitol.­texas.­gov/Docs/TX/htm/TX.­26.­htm#26.­10 (accessed Mar. 23, 2024).

26.01
Submission of Rolls to Taxing Units
26.02
Assessment Ratios Prohibited
26.03
Treatment of Captured Appraised Value and Tax Increment
26.04
Submission of Roll to Governing Body
26.05
Tax Rate
26.06
Notice, Hearing, and Vote on Tax Increase
26.07
Automatic Election to Approve Tax Rate of Taxing Unit Other than School District
26.08
Automatic Election to Approve Tax Rate of School District
26.09
Calculation of Tax
26.10
Prorating Taxes--loss of Exemption
26.11
Prorating Taxes--acquisition by Government
26.012
Definitions
26.12
Units Created During Tax Year
26.013
Unused Increment Rate
26.13
Taxing Unit Consolidation During Tax Year
26.14
Annexation of Property During Tax Year
26.15
Correction of Tax Roll
26.16
Posting of Tax-related Information on County’s Internet Website
26.17
Database of Property-tax-related Information
26.18
Posting of Tax Rate and Budget Information by Taxing Unit on Website
26.041
Tax Rate of Unit Imposing Additional Sales and Use Tax
26.042
Calculation and Adoption of Certain Tax Rates in Disaster Area
26.043
Voter-approval and No-new-revenue Tax Rates in City Imposing Mass Transit Sales and Use Tax
26.044
No-new-revenue Tax Rate to Pay for State Criminal Justice Mandate
26.045
Voter-approval Tax Rate Relief for Pollution Control Requirements
26.051
Evidence of Unrecorded Tax Rate Adoption
26.052
Simplified Tax Rate Notice for Taxing Units with Low Tax Levies
26.061
Notice of Meeting to Vote on Proposed Tax Rate that Does Not Exceed Lower of No-new-revenue or Voter-approval Tax Rate
26.062
Additional Information to Be Included in Tax Rate Notice
26.063
Alternate Provisions for Tax Rate Notice When De Minimis Rate Exceeds Voter-approval Tax Rate
26.065
Supplemental Notice of Hearing on Tax Rate Increase
26.075
Petition Election to Reduce Tax Rate of Taxing Unit Other than School District
26.081
Petition Signatures
26.085
Election to Limit Dedication of School Funds to Junior College
26.111
Prorating Taxes--acquisition by Charitable Organization
26.112
Calculation of Taxes on Residence Homestead of Certain Persons
26.113
Prorating Taxes--acquisition by Nonprofit Organization
26.135
Tax Dates for Certain School Districts
26.175
Property Tax Database Locator Website
26.0441
Tax Rate Adjustment for Indigent Health Care
26.0442
Tax Rate Adjustment for County Indigent Defense Compensation Expenditures
26.0443
Tax Rate Adjustment for Eligible County Hospital Expenditures
26.0444
Tax Rate Adjustment for Defunding Municipality
26.0501
Limitation on Tax Rate of Defunding Municipality
26.1115
Calculation of Taxes on Residence Homestead Generally
26.1127
Calculation of Taxes on Donated Residence Homestead of Disabled Veteran or Surviving Spouse of Disabled Veteran

Accessed:
Mar. 23, 2024

§ 26.10’s source at texas​.gov