COUNTY, STATE LEGISLATORS CHAMPION YZAGUIRRES' STATE TAX-CODE AMENDMENT TO ASSURE HOMESTEAD EXEMPTION

The Cameron County Commissioners Court on October 8 approved a resolution in support of  legislative changes to the Texas Tax Code  recommended by Cameron County Tax-Assessor-Collector Tony Yzaguirre so taxpayers can take advantage of the homestead exemptions during the process of purchasing their new home. Brandon Campos, representing Senator Morgan La Mantia, and Georgette Betancourt, representing State Representative Erin Gamez’s, were on hand to voice their bosses' support.

By Juan Montoya

The passage by voters of Texas Senate Bill 2 November 2023 raised the homestead exemption on statewide properties from $40,000 to $100,000 and provided enormous tax relief to homeowners claiming the exemption.

But as the Cameron County Tax Assessor-Collector's Office discovered, there were many home owners who – unaware of the either the old or new new tax relief through the exemption – had not even applied for the exemption when they purchased their homes to begin with.

As a result of not applying for it at their local county appraisal district, they found out that many local homeowners were not receiving the the tax relief embodied in Senate Bill 2.

"Some of them were never told that they had to apply for the exemption at the appraisal district when they closed out on their home," said Cameron County Tax Assessor-Collector Tony Yzaguirre. "We found that out when we held meetings across the county to help them file for the relief from the tax burden."

"In the past 10 months alone since the passage of Senate Bill 2, our office has issued over $15 million in refunds in Cameron County," he said. "Yet, our data reveals that more than 8,000 homeowners in Cameron County had not filed for homestead exemptions, even though their properties are coded as residential, and they are associated with a mortgage account.

Yzaguirre will leave office January 1, 2025, but the Cameron County Commissioners Court on October 8, approved his recommendation that they ask District 27 Texas Senator Morgan LaMantia and Texas House of Representative Erin Gamez to push for changes in the Texas State Code in the legislative session starting January 2025.

Specifically, Yzaguirre's initiative recommends that Section 11.135 of the Texas Tax Code, Subchapter 8 – continuation of residence homestead exemption while replacement structure is constructed; sale of property – be amended to require title companies to submit homestead exemptions to the local appraisal district at the time of closing of the sale.

Senior homeowners, disabled homeowners, disabled veterans, and military or first responder spouses can claim additional exemptions.

Yzaguirre told commissioners and wrote to LaMantia and Gamez that the root of the issue can b resolved in the home-buying process. Currently, he said, buyers navigate multiple stages – working with a Realtor, securing financing through a lending institution, and closing through a title company. By the time they reach the closing stage, they are overwhelmed with paperwork, and there is no formalized requirement to file for a homestead exemption. As a result, many new homeowners are left unaware of the exemption and face unnecessarily high property taxes.   

LaMantia and Gamez – in the midst of campaigning for re-election – sent a representative to the Cameron County Commissioners Court's  October 8 meeting and expressed their support for the resolution and pledged to push the legislation through the Texas Legislature during the upcoming 2025 legislative session this January.

"In some cases the new home exemption will save some homeowners of as much as $1,200 from their tax bill," Yzaguirre said. "By making the homestead exemption application a part of the buying process, it will provide tax relief not only to local homeowners, but to tax payers across the state. Throughout my years as the elected Tax-Assessor-Collector for Cameron County I've dedicated my office of helping residents lower their tax liability and maximize their benefits under the law."