HomeMy WebLinkAboutCCpkt2017-07-11
AGENDA
City Council Work Session
Tuesday, July 11, 2017 @ 6:30 P M
A nna City Hall, Council Chambers
111 N. P owell Parkway, A nna, Texas 75409
T he City C ouncil of the City of Anna will meet in Work S ession at 6:30 P M, on J uly 11,
2017, at the A nna C ity Hall, L ocated at 111 North P owell Parkway (Hwy 5), to consider
the following items.
1.C all to O rder, R oll Call and E stablishment of Quorum
2.P resentation/Brief ing regarding community branding project. (J essica P erkins)
a
3.C L O S E D S E S S I O N (E X C E P T I O NS )
Under Tex. Gov't Code Chapter 551, the City Council may enter i nto closed
session to discuss any items listed or referenced on this agenda under the
fol lowing exceptions:
a.Consult with legal counsel regarding pending or contemplated litigation and/or
on matters in which the duty of the attorney to the governmental body under
the Texas D isciplinary Rules of Professional C onduct of the S tate Bar of
Texas clearly conflicts with Chapter 551 of the Government Code (Tex. Gov’t
Code §551.071).
a
b.Discuss or deliberate the purchase, exchange, lease, or value of real property
(Tex. Gov’t C ode §551.072); acquisition of right-of-way, easements, and land
f or parks and municipal f acilities.
a
c.Discuss or deliberate personnel matters (Tex. Gov’t Code §551.074);
discuss appointments/reappointments to boards and commissions.
a
d.Discuss or deliberate E conomic Development Negotiations: (1) To discuss or
deliberate regarding commercial or f inancial inf ormation that the C ity has
received f rom a business prospect that the C ity seeks to have locate, stay, or
expand in or near the territory of the City of Anna and with which the City is
conducting economic development negotiations; or (2) To deliberate the offer
of a financial or other incentive to a business prospect described by
subdivision (1). (Tex. Gov’t C ode §551.087); discuss proposed residential
development.
a
The Council further reserves the right to enter i nto executive session at any time
throughout any duly noticed meeting under any applicable exception to the
Open Meetings Act.
4.C onsider/Discuss/A ction on any items listed on any agenda—work session, regular
meeting, or closed session—that is duly posted by the City of Anna for any City
C ouncil meeting occurring on the same date as the meeting noticed in this agenda.
5.A djourn.
T his is to certify that I , Carrie L . S mith, City S ecretary, posted this agenda at a place
readily accessible to the public at the A nna City Hall and on the C ity Hall bulletin board at
or before 5:00 p.m. on .
___________________________________
Carrie L . Smith, City S ecretary
1. The Council may vote and/or act upon each of the items listed in this agenda.
2. The C ounc il reserves the right to retire into executive session c oncerning any of the items listed on
this agenda, whenever it is considered nec essary and legally justified under the Open Meeting Act.
3. Persons with a disability who want to attend this meeting who may need assistanc e should c ontact
the City S ec retary at 972 924-3325 two working day s prior to the meeting so that appropriate
arrangements c an be made.
Item No. 2.
C ity C ouncil Agenda
S taf f R eport
Meeting Date: 7/11/2017
AG E ND A IT E M :
P resentation/B rief ing regarding community branding project. (J essica P erkins)
S UM M ARY:
F or the past few years, one of City C ouncil's strategic goals has been to develop and promote a
comprehensive brand identity for the C ity. Approximately 2 years ago the City C ouncil selected
North Star D estination S trategies to create a new brand that would embrace Anna's today and its
future. North Star D estination Strategies has partnered with over 200 communities around the
country on a variety of projects including research, strategic planning, and community brand
development. W ithin C ollin County, North Star has worked with the cities of McKinney, A llen,
Plano, and F risco. Other Texas clients include the cities Dennison, Round Rock, and Missouri
C ity. North S tar has a proven comprehensive approach that includes an experienced research
and design team.
T he basis scope of work performed by North S tar included:
1. R esearch - identify information and current perceptions (collection of data f rom community,
consumers, and our competitors)
2. Planning – review of insights from the research f indings / developing a plan based on
patterns and findings. (Research findings/D NA strategy)
3. C reative Design – taking the findings and turning it into a tangible brand
4. I mplementation – action of integrating the new brand
5. Evaluation – how is the brand performing
Over the last 2 years staf f and a number of volunteers have worked through North S tar's proven
comprehensive approach that included months of research, writing strategies, creative design,
and f inally the deliverables. North Star will review with the Council the key milestones f rom each
stage of the process and present the final results of the creative design process for approval.
I n the near term, implementation of the new brand will include application of the completed design
elements to various mediums including website and social media, letterhead, business cards,
signage, etc.
S TAF F RE C O M M E ND AT IO N:
AGENDA
Regular City Council Meeting
Tuesday, July 11, 2017 @ 7:30 P M
A nna City Hall, Council Chambers
111 N. P owell Parkway, A nna, Texas 75409
T he C ity C ouncil of the City of A nna will meet in Regular S ession at 7:30 P M, on J uly
11, 2017, at the A nna City Hall, L ocated at 111 North P owell P arkway (Hwy 5), to
consider the following items.
Welcome to the City Council Meeting. Please sign the Sign-In-Sheet as a record of
attendance. If you wish to speak on an open-session agenda item, please fill out the
Opinion/Speaker Registration Form and turn it in to the City Secretary before the
meeting starts.
1.C all to O rder, R oll Call and E stablishment of Quorum.
2.I nvocation and Pledge of Allegiance.
3.C itizen Comments.
Citizens are allowed three mi nutes to speak. The Council is unable to respond
to or discuss any issues that are brought up during this section that are not on
the agenda, other than to make statements of specific factual information in
response to a citizen's inquiry or to recite existing policy in response to the
inqui ry.
4.R eceive reports f rom S taff or the City Council about items of community interest.
Items of community interest include: expressions of thanks, congratulations, or
condol ence; information regarding holi day schedules; an honorary or salutary
recogni ti on of a public offi cial, public empl oyee, or other citizen (but not
incl uding a change in status of a person's publ ic office or publ ic employment); a
remi nder about an upcoming event organized or sponsored by the governing
body; information regarding a social, ceremonial, or community event organized
or sponsored by an entity other than the governing body that was attended or is
schedul ed to be attended by a member of the governi ng body or an official or
employee of the muni cipality; and announcements i nvolving an imminent threat
to the public health and safety of people in the munici pality that has arisen after
the posting of the agenda.
5.C onsent I tems.
These items consi st of non-controversial or "housekeeping" items required by
law. Items may be considered indivi dual ly by any Council member making
such request prior to a motion and vote on the Consent Items.
a.A pproval of C ity C ouncil Minutes f or J une 27, 2017.
a
6.C onsider/Discuss/A ction regarding a R esolution accepting the final design of the
C ity of Anna Community Brand I dentity P roject as presented by North Star
D estination Strategies and authorizing the implementation of the new brand identity
throughout the City. (J esscia P erkins)
a
7.C onsider/Discuss/A ction regarding a R esolution amending the P ersonnel P olicy
Manual. (C ity Manager)
a
8.B rief ing/Discussion regarding the F Y 17 and preliminary draft F Y 18 Budgets.
(D ana T hornhill)
a
9.B rief ing/Discussion regarding property tax exemptions and tax f reeze. (City
Manager)
a
10.C L O S E D S E S S I O N (E X E C E P T I O NS )
Under Tex. Gov't Code Chapter 551, the City Council may enter i nto closed
session to discuss any items listed or referenced on this agenda under the
fol lowing exceptions:
a.Consult with legal counsel regarding pending or contemplated litigation and/or
on matters in which the duty of the attorney to the governmental body under
the Texas D isciplinary Rules of Professional C onduct of the S tate Bar of
Texas clearly conflicts with Chapter 551 of the Government Code (Tex. Gov’t
Code §551.071).
a
b.Discuss or deliberate the purchase, exchange, lease, or value of real property
(Tex. Gov’t C ode §551.072); acquisition of right-of-way, easements, and land
f or parks and municipal f acilities.
a
c.Discuss or deliberate personnel matters (Tex. Gov’t Code §551.074);
discuss appointments/reappointments to boards and commissions.
a
d.Discuss or deliberate E conomic Development Negotiations: (1) To discuss or
deliberate regarding commercial or f inancial inf ormation that the C ity has
received f rom a business prospect that the C ity seeks to have locate, stay, or
expand in or near the territory of the City of Anna and with which the City is
conducting economic development negotiations; or (2) To deliberate the offer
of a financial or other incentive to a business prospect described by
subdivision (1). (Tex. Gov’t C ode §551.087); discuss proposed residential
development.
a
The Council further reserves the right to enter into executive session at any time
throughout any duly noticed meeting under any applicable exception to the Open
Meetings Act.
11.C onsider/Discuss/A ction on any items listed on any agenda—work session, regular
meeting, or closed session—that is duly posted by the City of Anna for any City
C ouncil meeting occurring on the same date as the meeting noticed in this agenda.
12.A djourn.
T his is to certify that I , Carrie L . S mith, City S ecretary, posted this agenda at a place
readily accessible to the public at the A nna City Hall and on the C ity Hall bulletin board at
or before 5:00 p.m. on
___________________________________
Carrie L . Smith, City S ecretary
1. The Council may vote and/or act upon each of the items listed in this agenda.
2. The C ounc il reserves the right to retire into executive session c oncerning any of the items listed on
this agenda, whenever it is considered nec essary and legally justified under the Open Meeting Act.
3. Persons with a disability who want to attend this meeting who may need assistanc e should c ontact
the City S ec retary at 972 924-3325 two working day s prior to the meeting so that appropriate
arrangements c an be made.
Item No. 5.a.
C ity C ouncil Agenda
S taf f R eport
Meeting Date: 7/11/2017
AG E ND A IT E M :
A pproval of City Council Minutes f or J une 27, 2017.
S UM M ARY:
S TAF F RE C O M M E ND AT IO N:
AT TAC HM E NT S:
D escription Upload D ate Type
Proposed Minutes 7/3/2017 Exhibit
ANNA CITY COUNCIL
MINUTES
WORK SESSION
June 27, 2017
The City Council of the City of Anna met in Work Session on the above date at Anna
City Hall, located at 111 North Powell Parkway (Hwy 5), to consider the following items.
1.Call to Order, Roll Call and Establishment of Quorum
Mayor Crist called the meeting to order at 6:30 p.m.
All Council Members were present.
2.Briefing/Discussion regarding the FY 17 and preliminary draft FY 18
Budgets. (Dana Thornhill)
3.Briefing/Discussion regarding property tax exemptions and tax freeze. (City
Manager)
Item 3 was postponed to a future agenda.
4.CLOSED SESSION (EXCEPTIONS)
Under Tex. Gov't Code Chapter 551, the City Council may enter into closed
session to discuss any items listed or referenced on this agenda under the
following exceptions:
a.Consult with legal counsel regarding pending or contemplated litigation and/or
on matters in which the duty of the attorney to the governmental body under
the Texas Disciplinary Rules of Professional Conduct of the State Bar of
Texas clearly conflicts with Chapter 551 of the Government Code (Tex. Gov’t
Code §551.071).
a
b.Discuss or deliberate the purchase, exchange, lease, or value of real property
(Tex. Gov’t Code §551.072); acquisition of right-of-way, easements, and land
for parks and municipal facilities.
a
c.Discuss or deliberate Economic Development Negotiations: (1) To discuss or
deliberate regarding commercial or financial information that the City has
received from a business prospect that the City seeks to have locate, stay, or
expand in or near the territory of the City of Anna and with which the City is
conducting economic development negotiations; or (2) To deliberate the offer
of a financial or other incentive to a business prospect described by
subdivision (1). (Tex. Gov’t Code §551.087); discuss proposed
development in Anna Town Center.
CC Minutes 06/27/2017 Page 1 of 6
a
d.Discuss or deliberate personnel matters (Tex. Gov’t Code §551.074);
discuss appointments/reappointments to boards and commissions.
a
No closed session held.
The Council further reserves the right to enter into executive session at any time
throughout any duly noticed meeting under any applicable exception to the
Open Meetings Act.
5.Consider/Discuss/Action on any items listed on any agenda—work session, regular
meeting, or closed session—that is duly posted by the City of Anna for any City
Council meeting occurring on the same date as the meeting noticed in this agenda.
MOTION: Council Member Beazley moved to take no action. Council Member
Bryan seconded. Motion carried 7-0.
6.Adjourn.
MOTION: Council Member Bryan moved to adjourn. Council Member Miller
seconded. Motion carried 7-0.
Mayor Crist adjourned the meeting at 7:29 p.m.
Approved on the 11th day of July, 2017.
________________________
Mayor Mike Crist
ATTEST:
__________________________
City Secretary Carrie L. Smith
CC Minutes 06/27/2017 Page 2 of 6
ANNA CITY COUNCIL
MINUTES
REGULAR SESSION
June 27, 2017
1.Call to Order/Roll Call and Establishment of Quorum
Mayor Crist called the meeting to order at 7:30 p.m.
All Council Members were present.
2.Invocation and Pledge of Allegiance.
Mayor Crist led the pledge and invocation.
3.Citizen Comments.
Citizens are allowed three minutes to speak. The Council is unable to respond
to or discuss any issues that are brought up during this section that are not on
the agenda, other than to make statements of specific factual information in
response to a citizen's inquiry or to recite existing policy in response to the
inquiry.
William Morgan, 2029 Helmoken Falls Dr - Has concerns with the dying trees and
the removal of the street lights at the entrance of the Falls.
4.Receive reports from Staff or the City Council about items of community
interest.
Items of community interest include: expressions of thanks, congratulations, or
condolence; information regarding holiday schedules; an honorary or salutary
recognition of a public official, public employee, or other citizen (but not
including a change in status of a person's public office or public employment); a
reminder about an upcoming event organized or sponsored by the governing
body; information regarding a social, ceremonial, or community event organized
or sponsored by an entity other than the governing body that was attended or is
scheduled to be attended by a member of the governing body or an official or
employee of the municipality; and announcements involving an imminent threat
to the public health and safety of people in the municipality that has arisen after
the posting of the agenda.
GACC will be hosting the July 4 Spectacular on July 4 from 8 to 10.
Anna was awarded the North Texas Council of Government Cooperation award.
5.Consent Items.
These items consist of non-controversial or "housekeeping" items required by
law. Items may be considered individually by any Council member making
such request prior to a motion and vote on the Consent Items.
CC Minutes 06/27/2017 Page 3 of 6
a. Approve City Council Meeting Minutes:
May 16, 2017
May 30, 2017
June 13, 2017
b. Review minutes from the May 4, 2017 EDC meeting. (Jessica Perkins)
c. Review minutes from the May 4, 2017 CDC meeting. (Jessica Perkins)
MOTION: Council Member Beazley moved to approve the consent agenda.
Council Member Martinez seconded. Motion carried 7-0.
6. Consider/Discuss/Action regarding a Resolution approving an Agreement
with Municipal Voice. (Jessica Perkins)
a
RESOLUTION 2017-06-332
A RESOLUTION OF THE CITY OF ANNA, TEXAS APPROVING AN
AGENCY-CLIENT AGREEMENT WITH MUNICIPAL VOICE.
MOTION: Mayor Crist moved to approve. Council Member Martinez seconded.
Motion carried 5-2. Council Members Bryan and Miller opposed.
7. Consider/Discuss/Action regarding a Resolution relating to a 457 Deferred
Compensation Plan. (City Manager)
a
RESOLUTION 2017-06 -333
A RESOLUTION OF THE CITY OF ANNA, TEXAS RELATING TO A
457 DEFERRED COMPENSATION PLAN.
MOTION: Council Member Bryan moved to approve. Council Member Pelham
seconded. Motion carried 7-0.
8. Briefing/Discussion regarding the 2016 Consumer Confidence Report.
(Joseph Johnson)
a
Public Works Director reviewed the 2016 CCR with Council.
9. Briefing/Discussion regarding City Charter review and amendment
process. (City Attorney)
a
City Attorney McCoy reviewed the process and procedures of the Charter Review
Commission.
10. CLOSED SESSION (EXECEPTIONS)
Under Tex. Gov't Code Chapter 551, the City Council may enter into closed
session to discuss any items listed or referenced on this agenda under the
CC Minutes 06/27/2017 Page 4 of 6
following exceptions:
a.Consult with legal counsel regarding pending or contemplated litigation and/or
on matters in which the duty of the attorney to the governmental body under
the Texas Disciplinary Rules of Professional Conduct of the State Bar of
Texas clearly conflicts with Chapter 551 of the Government Code (Tex. Gov’t
Code §551.071).
a
b.Discuss or deliberate the purchase, exchange, lease, or value of real property
(Tex. Gov’t Code §551.072); acquisition of right-of-way, easements, and land
for parks and municipal facilities.
a
c.Discuss or deliberate Economic Development Negotiations: (1) To discuss or
deliberate regarding commercial or financial information that the City has
received from a business prospect that the City seeks to have locate, stay, or
expand in or near the territory of the City of Anna and with which the City is
conducting economic development negotiations; or (2) To deliberate the offer
of a financial or other incentive to a business prospect described by
subdivision (1). (Tex. Gov’t Code §551.087); discuss proposed
development in Anna Town Center.
a
d.Discuss or deliberate personnel matters (Tex. Gov’t Code §551.074);
discuss appointments/reappointments to boards and commissions.
a
MOTION: Council Member Bryan moved to enter closed session. Mayor Crist
seconded. Motion carried 7-0.
Mayor Crist recessed the open meeting at 8:30 p.m.
Mayor Crist reconvened the open meeting at 9:16 p.m.
11.Consider/Discuss/Action on any items listed on the posted agenda or any
closed session occurring during this meeting, as necessary
MOTION: Mayor Crist moved to take no action. Council Member Bryan
seconded. Motion carried 7-0.
12.Adjourn.
MOTION: Council Member Bryan moved to adjourn the meeting. Council
Member Beazley seconded. Motion carried 7-0.
Mayor Crist adjourned the meeting at 9:18 p.m.
CC Minutes 06/27/2017 Page 5 of 6
Approved on the 11th day of July, 2017.
________________________
Mayor Mike Crist
ATTEST:
__________________________
City Secretary Carrie L. Smith
CC Minutes 06/27/2017 Page 6 of 6
Item No. 6.
C ity C ouncil Agenda
S taf f R eport
Meeting Date: 7/11/2017
AG E ND A IT E M :
Consider/Discuss/A ction regarding a Resolution accepting the final design of the City of A nna
Community Brand I dentity Project as presented by North S tar Destination S trategies and
authorizing the implementation of the new brand identity throughout the City. (J esscia Perkins)
S UM M ARY:
F or the past few years, one of City C ouncil's strategic goals has been to develop and promote a
comprehensive brand identity for the C ity. Approximately 2 years ago the City C ouncil selected
North Star D estination S trategies to create a new brand that would embrace Anna's today and its
future. North Star D estination Strategies has partnered with over 200 communities around the
country on a variety of projects including research, strategic planning, and community brand
development. W ithin C ollin County, North Star has worked with the cities of McKinney, A llen,
Plano, and F risco. Other Texas clients include the cities Dennison, Round Rock, and Missouri
C ity. North S tar has a proven comprehensive approach that includes an experienced research
and design team.
T he basis scope of work performed by North S tar included:
1. R esearch - identify information and current perceptions (collection of data f rom community,
consumers, and our competitors)
2. Planning – review of insights from the research f indings / developing a plan based on
patterns and findings. (Research findings/D NA strategy)
3. C reative Design – taking the findings and turning it into a tangible brand
4. I mplementation – action of integrating the new brand
5. Evaluation – how is the brand performing
Over the last 2 years staf f and a number of volunteers have worked through North S tar's proven
comprehensive approach that included months of research, writing strategies, creative design,
and f inally the deliverables. North Star will review with the Council the key milestones f rom each
stage of the process and present the final results of the creative design process for approval.
I n the near term, implementation of the new brand will include application of the completed design
elements to various mediums including website and social media, letterhead, business cards,
signage, etc.
S TAF F RE C O M M E ND AT IO N:
Staf f recommends approval of the attached R esolution.
AT TAC HM E NT S:
D escription Upload D ate Type
Brand Resolution 7/6/2017 R esolution
CITY COUNCIL OF ANNA, TEXAS RESOLUTION NO.___ PAGE 1 OF 1
CITY OF ANNA, TEXAS
RESOLUTION NO. _________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANNA APPROVING AND
AUTHORIZING THE FINAL DESIGN OF THE COMMUNITY BRAND IDENTITY
PROJECT AS PRESENTED BY NORTH STAR DESTINATION STRATEGIES AND
AUTHORIZING THE IMPLEMENTATION OF THE NEW BRAND THROUGHOUT THE
CITY
WHEREAS, the City Council of the City of Anna, Texas (the “City Council”) recognizes
the need to further the Anna Brand with branding redesign for the purpose of community
development in and near the City of Anna, Texas (the “City”); and
WHEREAS, the City Council desires to approve this resolution authorizing the final design
of the Community Brand Identify as presented by North Star Designation Strategies; and
WHEREAS, the City Council desires to implement the new brand throughout the City and
in other areas for the identification and promotion of the City.
NOW THEREFORE, BE IT RESOLVED BY THE CITY OF ANNA CITY COUNCIL:
Recitals Incorporated.
The recitals set forth above are incorporated herein for all purposes as if set forth in full.
Acceptance of Project and Implementation
The City Council hereby authorizes and approves the final design of the Community
Brand Identity Project, attached hereto as Exhibit 1, and further authorizes the
implementation of the new brand throughout the City and in other areas for the
identification and promotion of the City.
PASSED by the City Council of the City of Anna, Texas, on this 11th day of July, 2017.
ATTEST: APPROVED:
_____________________________ ____________________________
Carrie L. Smith, City Secretary Mike Crist, Mayor
Item No. 7.
C ity C ouncil Agenda
S taf f R eport
Meeting Date: 7/11/2017
AG E ND A IT E M :
Consider/Discuss/A ction regarding a Resolution amending the Personnel P olicy Manual. (City
Manager)
S UM M ARY:
Staf f is recommending changes to the C ity's personnel policy manual regarding overtime
calculations and vacation leave accrual.
Overtime
T he C ity of A nna P ersonnel P olicy Manual includes provisions that define when overtime
compensation is paid to eligible employees. Overtime is typically paid to F L S A non-exempt
employees when the number of hours worked by an employee in a reporting period exceeds the
maximum number established in f ederal law. Under the current policy vacation time and holiday
time are not included in the calculation f or computing "hours worked" in a reporting period. W hen
vacation or holiday leave occurs during a reporting period, it is less likely that an employee will
receive overtime for call-out af ter normal work hours because the total numbers of "hours worked"
may not exceed the maximum during that reporting period.
F or employees subject to after hours call-out assignments, this can create inequities in the
compensation. E mployees called-out during a reporting period with a holiday or vacation leave
are less likely to receive overtime pay f or the additional hours; whereas employees called out
during a reporting period without a holiday and where no vacation time is taken are more likely to
receive overtime pay for the extra hours. Volunteer assignments (such as providing security,
traf f ic control, or support f or special events) are easier to f ill when employees are more likely to
receive overtime compensation.
T he proposed amendment to Section 105.04(f ) of the personnel policy would count holiday leave
and vacation leave as hours worked for purposes of overtime calculations.
Vacation Accrual
Many of the new employees hired by the C ity of A nna have prior experience in other cities and are
accustomed to accruing vacation leave at a higher rate than what a new employee accrues under
our current policy. P er our existing policy, new employees accrue 2-weeks of vacation leave per
year with an additional day for each year of service until their sixth year when they would accrue a
maximum of 3-weeks per year.
I n order to provide a compensation program that will improve our ability to attract and retain trained
and qualified employees, we are recommending that S ection 106.2(b) be amended to authorize
3-weeks of vacation leave for all employees with less than 10-years of service with the City. Most
cities we surveyed authorize up to 4-weeks of vacation leave f or employees with over 10 or 15
years of service. T he proposed amendment would grant employees with 10 or more years of
service 4-weeks of vacation leave per year.
T he amendment in paragraph (n) recognizes that in negotiating an offer of employment, the C ity
Manager may need to authorize paid leave to a prospective new employee.
S TAF F RE C O M M E ND AT IO N:
Staf f recommends adoption of the attached Resolution approving changes to the P ersonnel
Policy Manual.
AT TAC HM E NT S:
D escription Upload D ate Type
Personnel P olicy Manual Resolution 7/6/2017 R esolution
PAGE 1 OF 2
CITY OF ANNA, TEXAS
RESOLUTION NO.
A RESOLUTION APPROVING AMENDMENTS TO THE CITY OF ANNA PERSONNEL
POLICY MANUAL
WHEREAS, on March 11, 2014, the City Council of the City of Anna, Texas (“City
Council”) approved a Personnel Policy Manual that includes personnel guidelines for use
in certain operations of the City’s departments/personnel and in matters related to human
resources; and,
WHEREAS, said Personnel Policy Manual was amended on September 22, 2015 and on
January 26, 2016; and,
WHEREAS, the City Manager has recommended approval of certain amendments to the
Personnel Policy Manual, attached hereto as Exhibit 1; and,
WHEREAS, the City Council finds that its approval of the amendments to the Personnel
Policy Manual is not intended to and does not: (1) create any type of contract of
employment between the City and any employee; or (2) have the force or effect of law or
ordinance;
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
ANNA, TEXAS THAT:
Section 1. Recitals Incorporated
The recitals set forth above are incorporated herein for all purposes as if set forth in full.
Section 2. Personnel Policy Manual Amendments Approved
The City Council of the City of Anna, Texas hereby approves the amendments to the City
of Anna Personnel Policy Manual, attached hereto as Exhibit 1, for use by the City
Manager and City departments in relation to certain organizational operations and matters
related to personnel and human resources.
PASSED by the City Council of the City of Anna, Texas, on this 11th day of July, 2017.
ATTEST: APPROVED:
_____________________________ ____________________________
Carrie L. Smith, City Secretary Mike Crist, Mayor
PAGE 2 OF 2
Exhibit 1
105.04 Overtime and Compensatory Time
(f) Holiday leave and vacation leave will be counted as hours worked for purposes of
overtime calculations. All other paid leave, including but not limited to sick leave,
vacation leave, holiday leave, jury duty, administrative leave, bereavement leave,
workers’ compensation injury leave, disability leave, military leave, unpaid leave and
compensatory time off will not be counted as hours worked for purposes of overtime
calculations.
106.02 Vacation
(b) Regular full-time employees begin to accrue vacation leave on the first day of
employment as shown in the following table:
(n) The City Manager may authorize paid leave as part of an offer of employment to a
prospective employee.
Years Hours per
pay period
Approx.
Weeks per
Year
Hours per
pay period
Approx.
Weeks per
Year
Hours per
pay period
Approx.
Weeks per
Year
1st 4.31 2 3.23 2 3.08 2
2nd 4.74 2.2 3.55 2.2 3.38 2.2
3rd 5.17 2.4 3.88 2.4 3.69 2.4
4th 5.6 2.6 4.2 2.6 4 2.6
5th 6.03 2.8 4.53 2.8 4.31 2.8
1-9 6 or more 6.462 3 4.847 3 4.616 3
10 or more 9.230 4 6.920 4 6.160 4
Hours per
year
Approx.
Weeks per
year
Hours per
year
Approx.
Weeks per
year
Hours per
year
Approx.
Weeks per
year
Maximum
Annual Vacation
Accrual
336 6 252 6 240 6
Vacation Leave Accrual
Full-time Fire
Department 24 hour Shift
Employees (Avg. 56
hours per week)
Full-time Police
Department 12 hour Shift
Employees (Avg. 42
hours per week)
All other Full-time (Avg.
40 hours per week)
Item No. 8.
C ity C ouncil Agenda
S taf f R eport
Meeting Date: 7/11/2017
AG E ND A IT E M :
B riefing/Discussion regarding the F Y 17 and preliminary draf t F Y 18 B udgets. (Dana Thornhill)
S UM M ARY:
Staf f will review the f ollowing draf t budgets with the C ity C ouncil:
Public Works Administration
Water
Sewer
Utility B illing
Solid Waste
T hese departments comprise the Utility F und operations for the City of A nna and are primarily
funded through the user fees assessed for utility service from the C ity of A nna.
I n conjunction with our rate consultant, staf f has developed preliminary revenue projections based
upon consumption data.
S TAF F RE C O M M E ND AT IO N:
T hese are preliminary draft budget proposals. A ny f eedback or comments are welcome.
Item No. 9.
C ity C ouncil Agenda
S taf f R eport
Meeting Date: 7/11/2017
AG E ND A IT E M :
B riefing/Discussion regarding property tax exemptions and tax freeze. (City Manager)
S UM M ARY:
Property tax in Texas is a locally assessed and locally administered tax. T here is no state property
tax. P roperty tax brings in the most money of all taxes available to local government to pay for
schools, roads, police and fire services, emergency response services, parks and other services
provided by local government.
Texas offers a variety of partial or total (absolute) exemptions from appraised property values
used to determine local property taxes. A partial exemption removes a percentage or a fixed dollar
amount of a property's value from taxation. A total (absolute) exemption excludes the entire
property from taxation. Taxing units are mandated by the state to offer certain (mandatory)
exemptions and have the option to decide locally on whether to of f er others (local option). Most
property tax exemptions are mandated by the state and are available to any eligible property
owner (see attached Texas P roperty Tax E xemptions).
Homestead E xemptions
Several R esidence Homestead exemptions are available to Texas property owners (see attached
Appendix C ). W hile most homestead exemptions are mandatory, a f ew are available by local
option only. L ocal option homestead exemptions include the general residence homestead
exemption for cities, and the Age 65 or older or disabled homestead exemption.
T he City of Anna currently of f ers a $30,000 homestead exemption for A ge 65 or older property
owners. T he City does not offer a disabled person exemption or a general homestead
exemption. $30,000 is the median and near the average for Collin County cities that of f er the A ge
65 or older homestead exemption (see attached comparative chart).
F or the 2017 tax year, there are 444 properties in the City of A nna that qualify f or the $30,000
over-65 homestead exemption. T hese exemptions will reduce the City's total taxable value by
$12,344,063 which, at the current tax rate, equates to $77,644.
F or the 2016 tax year, approximatly 64% of the single f amily properties in A nna I S D qualif ied for
the general homestead exemption. F or the the 2017 tax year there are 4180 single family
properties in Anna - 64% would be 2,675. Using these assumptions, the minimum homested
exemption of $5,000 would result in loss of taxable value of at least $13,375,000 which equates
to a revenue loss of $84,128. T he homeowner's annual savings would equal $31.45.
Exemptions f rom property tax require applications in most circumstances. A pplications for
property tax exemptions are f iled with appraisal districts. Appraisal district chief appraisers are
responsible f or determining whether property qualif ies f or an exemption.
Tax Freeze
A 2003 amendment to the Texas Constitution, H.J .R . 16, and an enacting bill, H.B . 136, provide
that a city may f reeze the homestead taxes of persons over the age of 65. F or example, if a
person over 65 currently pays $800 in city property taxes, that person will never pay more than that
dollar amount during the person’s lifetime, or during the lif etime of certain surviving spouses if the
freeze is enacted. The f reeze is at the option of the city council, except that an election is required
if a petition is received by five percent of the registered voters in the city (see attached Tax
F reeze Q&A )
Of the 27 cities in C ollin C ounty, only 11 of f er a tax f reeze f or property owners A ge 65 or older or
to the disabled (see attached comparative chart). T he legislation is clear that a tax freeze is
permanent once enacted and cannot be repealed. A tax freeze would also be cumulative of the
over 65 homestead exemption.
Tax Deferr al
Unlike persons under 65, property owners 65 and older cannot lose their homesteads f or non-
payment of property taxes (Texas Tax Code § 33.06). This is known as a “deferral.” T he tax
freeze is also cumulative of the def erral. To obtain a def erral, an individual must file with the chief
appraiser for the appraisal district in which the property is located an af f idavit stating the facts
required to be established by state law. T he chief appraiser shall notify each taxing unit
participating in the district of the f iling. A f ter an af f idavit is f iled, a taxing unit may not f ile suit to
collect delinquent taxes on the property and the property may not be sold at a sale to foreclose
the tax lien until the 181st day after the date the individual no longer owns and occupies the
property as a residence homestead.
S TAF F RE C O M M E ND AT IO N:
Any changes to the current homestead exemptions or the adoption of a tax f reeze would shift a
portion of the total tax burden to other property owners and could af f ect the city’s tax rate.
T he over-65 tax f reeze is estimated to reduce the total taxable value of properties in A nna I S D for
F Y 18 by about 10%. I f the C ity were to adopt an over-65 tax f reeze, it is reasonable to assume
that the annual taxable value loss over time could rise to 10% since the C ity and I S D boundaries
cover similar geography. Using the current tax rate and the estimated value for F Y 18, a 10% loss
of taxable value would equate to a loss of $421,000 in the General Fund and a loss of $102,000
in the Debt S ervice F und. I t would take a tax increase of at least $0.063 (6.3 cent) to make up for
the revenue loss, bearing in mind that a tax increase would not generate any revenue from
properties under a tax f reeze.
T he City has f ive (5) full-time public safety positions that are currently f unded through grant
revenue. T he grants f or four of those positions (two police officers and two fire f ighters) will
expire at the end of the 2017-2018 fiscal year. T he grant f or the remaining P olice department
position (a child abuse investigator) will expire at the end of the 2018-2019 f iscal year. Retaining
these five positions will add $276,346 to the General F und expenses in the 2018-2019 f iscal
year, and an additional $79,871 expense to the General F und in the 2019-2020 f iscal year
.
Assuming no additional exemptions and no over-65 tax f reeze, and assuming that the current
estimated taxable value of $832 M increases by 10% in F Y 19; the total taxable value in F Y 19
would be approximately $915M. At the current tax rate, this would increase revenue in the
General Fund by $421,000. I f we only pay an additional $276,346 to fund the grant positions, the
remaining property tax revenue in F Y 19 would be about $144,000. T his amount, coupled with
any increase in sales tax and other revenue will need to cover any new positions in the General
F und, salary adjustments, and any additional increase to the maintenance and operations budget
in F Y 19.
AT TAC HM E NT S:
D escription Upload D ate Type
Texas Property Tax Exemptions 6/21/2017 Backup Material
Appendix C, R esidence Homestead E xemptions 6/21/2017 Backup Material
C omparative C hart (Collin C ounty Cities)6/21/2017 Backup Material
Tax Freeze Q&A 6/21/2017 Backup Material
Texas Property
Tax Exemptions
Complete and Partial Property
Tax Code Exemptions Available to
Property Owners Who Qualify
January 2016
Glenn Hegar
Texas Comptroller of Public Accounts
Tax Code Section 5.05(a) authorizes the Comptroller’s office to prepare and issue publications relating to the appraisal of
property and the administration of taxes as a public service. By publishing this manual, the Comptroller’s office is mak-
ing available an information resource of a general nature regarding the appraisal of property and the administration of
taxes. This publication does not address and is not intended to address all aspects of property appraisal, tax administra-
tion or property tax law. The information contained in this publication neither constitutes nor serves as a substitute for
legal advice. Pursuant to Tax Code Section 5.041(f), the Comptroller’s office may not advise a property owner, a property
owner’s agent or the appraisal district on a protest matter. Questions regarding property appraisal, tax administration, the
meaning or interpretation of statutes, legal requirements and other similar matters should, as appropriate or necessary,
be directed to an attorney or other appropriate counsel.
Texas Property Tax
Property Tax Exemptions
Table of Contents
Property Tax Exemptions 1
Exemption Applications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
Owner’s Qualifications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
Property’s Qualifications and Use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
Chief Appraiser Determinations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
Types of exemptions 3
Residence Homestead (Tax Code Section 11.13) . . . . . . . . . . . . . . . . . . . . . . . . . . . .3
Veterans’ Exemptions (Tax Code Sections 11.131, 11.132, 11.133, 11.22 and 11.23(A)) . . . . . . . .5
Charitable Organizations Generally (Tax Code Section 11.18) . . . . . . . . . . . . . . . . . . . . .6
Community Land Trusts (Tax Code Section 11.1827) . . . . . . . . . . . . . . . . . . . . . . . . . .6
Primarily Charitable Organizations (Tax Code Section 11.184) . . . . . . . . . . . . . . . . . . . . .6
Religious Organizations (Tax Code Section 11.20) . . . . . . . . . . . . . . . . . . . . . . . . . . .6
Private Schools (Tax Code Section 11.21) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7
Public Property (Tax Code Section 11.11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7
Appendix A – Tax Code Exemption General Application Provisions 9
Appendix B – Other Property Tax Code Exemption Summaries 11
Appendix C – Residence Homestead Exemptions 17
Texas Property Tax
Property Tax Exemptions
Property tax in Texas is a locally assessed and locally admin-
istered tax. There is no state property tax. Property tax brings
in the most money of all taxes available to local government.
Property taxes pay for schools, roads, police and firemen,
emergency response services, libraries, parks, and other ser-
vices provided by local government. State law provides for
a variety of exemptions from property tax for property and
property owners that qualify for the exemption.
Texas offers a variety of partial or total (absolute) exemp-
tions from property appraised values used to determine local
property taxes. A partial exemption removes a percentage or
a fixed dollar amount of a property’s value from taxation. A
total (absolute) exemption excludes the entire property from
taxation. Taxing units are mandated by the state to offer cer-
tain (mandatory) exemptions and have the option to decide
locally on whether or not to offer others .
Exemption Applications
The law requires the property owner to apply for an exemp-
tion in most circumstances .1 If a property owner fails to file
a required application on time, the owner usually forfeits the
right to the exemption unless late application provisions exist
in law .2
The general deadline for filing an exemption application is
before May 1.3 Charitable organizations improving property
for low-income housing and community housing develop-
ment associations must file the application for exemption
within 30 days of acquiring the property.4
Some exemptions require the property owner to file an ap-
plication one time and others require the property owner to
file an application annually. Most one-time exemptions al-
low the chief appraiser to request a new application to verify
that a property or property owner remains eligible for the
exemption . Appendix A is a chart outlining which Tax Code
exemptions:
• require no application;
• require an annual application; or
• require a one-time application, unless requested by the
chief appraiser .
Appraisal district chief appraisers are responsible for deter-
mining whether or not property qualifies for an exemption.5
Property owners may appeal the chief appraiser’s exemp-
tion determinations, including the denial of an exemption.6
Taxing units, on the other hand, may appeal the granting of
an exemption to a property owner .7 An individual property
owner may not, however, challenge the grant of an exemption
to another property owner. Only a taxing unit may challenge
the exemption of property from the appraisal records .8 Prop-
erty is taxable unless the owner shows that it meets all legal
requirements for a total exemption.9
Exemption applications ask for most or all of the information
needed to decide an exemption issue. Most exemption cases
will depend on one or more of the following three issues: (1)
the owner’s eligibility; (2) the property’s qualifications; or (3)
the property’s use .
Property Tax Exemptions — 1
1 Tex. Tax Code § 11.43(a)
2 Tex. Tax Code §§ 11.43(d), 11.431, 11.433, 11.435, 11.438, 11.439 and
11.4391
3 Tex. Tax Code § 11.43(d)
4 Tex. Tax Code § 11.436
5 Tex. Tax Code § 11.45
6 Tex. Tax Code § 41.41
7 Tex. Tax Code § 41.03
8 Tex. Tax Code § 41.03
9 Tex. Tax Code § 11.01(a)
2 — Property Tax Exemptions
Owner’s Qualifications
Ownership requirements vary by exemption. Exemptions,
such as those for individuals or families (homestead or dis-
abled veterans’ exemptions), may require evidence of age,
physical condition or disability, military service, family rela-
tionship or other factors .
The date for determining most exemption qualifications is
Jan. 1, but there are some exceptions. Certain exemptions are
determined immediately upon a change in life of the prop-
erty owner or by the chief appraiser on a property’s acquisi-
tion date .10
January 1
The date for determining owner qualifications for general
homestead exemptions is Jan. 1. Property receiving exemp-
tions for freeport, abatement, pollution control, historic or
archeological site, solar- and wind-powered energy devices,
offshore drilling rigs, water conservation initiatives and dis-
abled veterans must qualify on Jan. 1.11
Immediate
Homeowners who reach age 65 or who become disabled dur-
ing a tax year, will qualify immediately for those exemptions,
as if the homeowner qualified on Jan. 1 of the tax year. In ad-
dition, a surviving spouse age 55 or older may qualify for the
deceased spouse’s exemption, if the spouse dies in the year
that he or she reaches age 65. Disabled veterans or their sur-
viving spouses with homes donated by charitable organiza-
tions and surviving spouses of U.S. armed services members
killed in action also qualify immediately for those exemp-
tions, as if they qualified on Jan. 1 of the tax year.12
Organizations qualifying for immediate exemption include
cemeteries, charitable organizations, religious organizations,
private schools, low-income housing organizations, youth
development associations, nonprofit water supply and waste-
water service corporations, veteran’s organizations and other
nonprofit organizations.
Acquisition Date
When the state, a political subdivision of the state and other
qualifying organizations acquire property used for public
purposes, the chief appraiser determines the property’s ex-
emption qualifications as of the acquisition date.13
Property’s Qualifications and Use
Many exemptions apply only to specific classes of property.
The property owner must list all property subject to the ex-
emption and demonstrate that each property meets exemp-
tion requirements.
How and when the property owner uses the property is often
critical in determining exemption cases. An important factor
is whether a property’s use is exclusive, primary or incidental.
Chief Appraiser Determinations
The chief appraiser is responsible for (1) granting an exemp-
tion application; (2) disapproving an exemption application
and asking for more information; (3) modifying an exemp-
tion application; or (4) denying an exemption application. A
property owner is entitled to a written notice of a modifica-
tion or the denial of an exemption application and may pro-
test such before an appraisal review board (ARB), if a protest
to the ARB is timely filed.14
A chief appraiser may deny an application for any number of
reasons. Denial of an exemption application can be because,
but not limited to, any of the following reasons:
• Property owner is not entitled to the exemption;
• The property does not qualify for an exemption;
• Documentation filed with an exemption application does
not support the exemption;
• Exemption is not filed timely;
• In the case of age 65 or older and disabled, only one ex-
emption may be claimed;
• Documentation filed with a request for homestead exemp-
tion does not match the property address; or
• In the case of a residence, an exemption has already been
granted on another property.
10 Tex. Tax Code § 11.43(d)
11 Tex. Tax Code § 11.42
12 Tex. Tax Code § 11.42
13 Tex. Tax Code §§ 11.42 and 11.436
14 Tex. Tax Code § 11.45
Property Tax Exemptions — 3
Texas Property Tax
Types of Exemptions
Tax Code exemption requirements are extensive. Property
owners should read applicable statutes carefully. The Comp-
troller’s hardcopy publication annotated Property Tax Code
contains the text of the law and notes on significant court cases.
The following is a short summary of selected exemption pro-
visions. Appendix B lists other exemptions authorized by the
Tax Code .
Residence Homestead
(Tax Code Section 11.13)
Most residential exemption court cases concern the owner’s
qualifications for the exemption; whether the exemption cov-
ers specific improvements or amounts of land; or whether the
property is the principal residence of the owner . Appendix C
lists mandatory and local option residence homestead exemp-
tions, their amounts and the applicable taxing units.
General Residence Homestead
Texas law requires school districts to offer a $25,000 exemp-
tion on residence homesteads .15 Any taxing unit, including a
city, county, school district or special district, has the option
of deciding locally to offer a separate residence homestead
exemption of up to 20 percent of a property’s appraised value,
but not less than $5,000.16 Counties are also required to of-
fer a $3,000 exemption if the county collects farm-to-market
roads or flood control taxes.17
There are no specific qualifications for the general homestead
exemption other than the owner has an ownership interest in
the property and uses the property as the owner’s principal
residence .18 However, an applicant is required to state that the
applicant does not claim an exemption on another residence
homestead in or outside of Texas . The application must in-
clude a copy of the applicant’s driver’s license or state iden-
tification card. This requirement does not apply to a resident
of a facility that provides services related to health, infirmity,
or aging; or to applicants who are certified for participation
in the Attorney General’s Address Confidentiality Program.19
A chief appraiser is prohibited by law from allowing a home-
stead exemption unless the address on the identification pro-
vided corresponds to the address of the property for which
the exemption is claimed. A chief appraiser may waive this
requirement for an active duty U.S. armed services member or
the spouse of an active duty service member if the application
includes a copy of the military identification card and a copy
of a utility bill for the residence homestead. A chief appraiser
also may waive the requirement if the applicant holds specific
driver’s license issued for judges and the spouses of judges or
peace officers and includes with the application a copy of the
application for that license provided to the Texas Department
of Transportatio n .20
Normally the exemption applies to those portions of the
house actually used as a residence, as opposed to business
or other use .21 The homestead includes up to 20 acres of land
and any improvements used for residential purposes.22
The home must be the principal residence of the applicant.
A qualified homeowner does not lose his or her homestead
exemption if the homeowner does not establish a different
principal residence, intends to return and occupy the resi-
dence and is temporarily absent for a period of less than two
years. The law provides that homeowners in military service
inside or outside the United States or in a facility providing
services related to health, infirmity or aging may be away
from the home longer than two years and still keep the home -
stead exemption . The two-year limit does not apply to these
homeowners .23
15 Tex. Tax Code § 11.13(b)
16 Tex. Tax Code § 11.13(n)
17 Tex. Tax Code § 11.13(a)
18 Tex. Tax Code § 11.13(j)(1)
19 Tex. Tax Code § 11.43(j)
20 Tex. Tax Code § 11.43(n) and (p)
21 Tex. Tax Code § 11.13(k)
22 Tex. Tax Code § 11.13(j)(1)
23 Tex. Tax Code § 11.13(l)
4 — Property Tax Exemptions
Age 65 or Older or Disabled
Texas law requires school districts to offer an additional
$10,000 residence homestead exemption to persons age 65 or
older or disabled.24 Any taxing unit, including a city, county,
school district or special district, has the option of deciding
locally to offer a separate residence homestead exemption for
persons age 65 or older in an amount not less than $3,000.25
To qualify for the mandatory and local option exemption for
persons age 65 or older, the owner must be age 65 or older
and live in the house.26 If the age 65 or older homeowner
dies, the surviving spouse may continue to receive the local
option exemption if the surviving spouse is age 55 or older at
the time of death and lives in and owns the home and applies
for the exemption .27
A disabled person must meet the definition of disabled for the
purpose of payment of disability insurance benefits under the
Federal Old-Age, Survivors and Disability Insurance Act.28 A
homeowner does not have to meet the definition of disabled
or age 65 or older on Jan. 1 of the tax year, but may qualify
as disabled or age 65 or older at any time during the tax year.
The exemption applies to the entire tax year as if the person
was disabled or age 65 on Jan. 1.29 If these applicants are not
specifically identified on a deed or other recorded instrument,
they must provide an affidavit or other compelling evidence
of ownership .30
The trustor of a qualifying trust may qualify for the residence
homestead exemption. A residence owned by an individual
through an interest in a qualifying beneficial trust and oc-
cupied by such individual as a trustor or beneficiary of the
trust may qualify. An owner’s surviving spouse who has a
life estate in a residence may also qualify the property for a
residence homestead exemption .31
The Tax Code places a ceiling on school taxes for residence
homesteads owned by persons who are age 65 and older or
disabled. The tax ceiling continues for age 55 or older surviv-
ing spouses of age 65 or older owners who die while qualified
for the tax ceiling. These homeowners may also transfer the
percent of tax paid, based on their ceiling, when they pur-
chase another home and use it as their principal residence .32
A county, city or junior college district can offer a tax limita-
tion on homesteads of taxpayers who are disabled or age 65
or older .33 The taxing unit’s governing body may adopt the
limitation or citizens in the taxing unit by petition and elec-
tion may adopt the limitation .34 Once adopted, the Tax Code
provides for the tax ceiling for disabled and age 65 or older
homeowners and their right to transfer to another homestead
in that taxing unit the same benefit of that tax ceiling. It also
provides for surviving spouses age 55 or older to retain the
tax ceiling.35
Manufactured and Cooperative Housing
Manufactured homes may qualify for homestead exemptions.
For a manufactured home to qualify as a residential home-
stead, the owner must follow detailed provisions concerning
a statement of ownership and location .36
A property owner may also receive a homestead exemption
for cooperative (co-op) housing.37 Upon receiving a request
from the co-op, the chief appraiser must separately appraise
and list each individual stockholder’s interest. Each stock-
holder whose interest is separately appraised may protest and
appeal the appraisal like any other property owner.38
Uninhabitable or Unstable
If a qualified residential structure for which the owner re-
ceives an exemption is rendered uninhabitable or unusable
by a casualty or by wind or water damage, the owner may
continue to receive the exemption. The exemption for the
structure and the land and improvements used in the residen-
tial occupancy of the structure while the owner constructs a
replacement qualified residential structure on the land con-
tinues if the owner does not establish a different principal
residence for which the owner receives an exemption during
that period and intends to return and occupy the structure as
the owner’s principal residence .39
24 Tex. Tax Code § 11.13(c)
25 Tex. Tax Code § 11.13(d)
26 Tex. Tax Code § 11.13(c) and (d)
27 Tex. Tax Code § 11.13(q)
28 Tex. Tax Code § 11.13(m)(1)
29 Tex. Tax Code § 11.42(c)
30 Tex. Tax Code § 11.43(o)
31 Tex. Tax Code § 11.13(j)(1)(D) and (j)(2)
32 Tex. Tax Code § 11.26(a), (g) and (i)
33 Tex. Tax Code § 11.261(a)
34 Tex. Const. art. VIII, § 1-b(h)
35 Tex. Tax Code § 11.261(g) and (i)
36 Tex. Tax Code § 11.432
37 Tex. Tax Code § 11.13(o)
38 Tex. Tax Code § 23.19(b)
39 Tex. Tax Code § 11.135
Property Tax Exemptions — 5
To continue to receive the exemption, the owner must begin
active construction of the replacement qualified residential
structure or other physical preparation of the site on which
the structure is to be located not later than one year after the
owner ceases to occupy the former qualified residential struc -
ture as the owner’s principal residence . The owner may not
receive the exemption for that property under these circum-
stances for more than two years . The site of a replacement
qualified residential structure is considered under physical
preparation if the owner has engaged in architectural or engi-
neering work, soil testing, land clearing activities or site im-
provement work necessary for the construction of the struc-
ture or has conducted an environmental or land use study
relating to the construction of the structure.40
Veterans’ Exemptions (Tax Code
Sections 11.131, 11.132, 11.133,
11.22 and 11.23(a))
Partial Exemption
Texas law provides partial exemptions for any property
owned by disabled veterans and surviving spouses and chil-
dren of deceased disabled veterans.41 It also provides a par-
tial exemption for residence homesteads donated to disabled
veterans by charitable organizations that extends to surviving
spouses who have not remarried. The amount of exemption
is determined according to percentage of service-connected
disability.42
Total Exemption
A surviving spouse of a member of the U.S. armed services
killed in action is allowed a total property tax exemption on
his or her residence homestead if the surviving spouse has not
remarried since the death of the armed services member.43
A disabled veteran who receives 100 percent disability com-
pensation due to a service-connected disability and a rating
of 100 percent disabled or individual unemployability from
the United States Department of Veterans Affairs is entitled
to an exemption from taxation of the total appraised value of
the veteran’s residence homestead.44 If these veterans qualify
for the exemption after Jan. 1 of a tax year, they receive an
exemption for the applicable portion of that year immediately
upon qualifying for the exemption. Likewise, if the property
no longer qualifies in a year, the exemption is removed for
that portion of the year .45
The 100 percent disabled veteran exemption extends to a sur-
viving spouse who was married to a disabled veteran who
qualified or would have qualified for this exemption if it had
been in effect at the time of the veteran’s death. To be entitled
to this exemption, the surviving spouse must not have remar-
ried; the property was the residence homestead of the surviv-
ing spouse when the veteran died; and the property remains
the residence homestead of the surviving spouse.46
If the surviving spouse is eligible for the exemption and then
qualifies a different property as a residence homestead, the
surviving spouse is entitled to the same dollar amount of the
former exemption that was last received at the former home-
stead. The surviving spouse cannot remarry to receive the
subsequent exemption. The chief appraiser of the county in
which the former residence was located must provide to the
surviving spouse a written certificate so that the amount of
the exemption on the subsequent qualified homestead can be
determined .47
The chief appraiser is also required, under Tax Code Section
11.431 to accept and approve or deny an application for the
surviving spouse after the deadline for filing has passed, if the
application for the exemption is filed not later than one year
after the delinquency date for the taxes on the homestead.48
Veterans Organizations
Property owned by a veterans organization is exempt. Quali-
fied veterans’ organizations are defined as non-profit organi-
zations composed primarily of members or former members
of the armed forces of the United States or its allies and that
are chartered or incorporated by the U.S. Congress.49
40 Tex. Tax Code § 11.135
41 Tex. Tax Code § 11.22
42 Tex. Tax Code § 11.132
43 Tex. Tax Code § 11.133
44 Tex. Tax Code § 11.131
45 Tex. Tax Code § 11.131
46 Tex. Tax Code § 11.131
47 Tex. Tax Code §§ 11.42, 26.10(c) and 26.1125
48 Tex. Tax Code § 11.431
49 Tex. Tax Code § 11.23(a)
6 — Property Tax Exemptions
Charitable Organizations Generally
(Tax Code Section 11.18)
Property owned by qualified charitable organizations is ex-
empt. An organization must meet requirements regarding
how it is organized, what it does and how it uses its property.
The organization is limited to charitable activities that are
listed in Tax Code Section 11.18.50
Exemptions for charitable organizations require the proper-
ty owner to have a charter or bylaws dedicating property to
particular purposes and providing for disposition of property
upon dissolution .51 The bylaws must pledge the group’s prop-
erties to charitable purposes. The organization may not allow
anyone to realize private gain from the organization’s activi-
ties .52 In some cases, particularly involving medical care fa-
cilities, children’s homes and nursing homes, questions may
involve whether the institution serves people who cannot pay
for services as well as those who can.
The exemption applies to property (buildings and land on
which the buildings are located and personal property) owned
by the charitable organization. The property must be used
exclusively by the organization or other equally qualified or-
ganizations. If part of the property is leased to or used by a
nonqualified person or business, the other use must be limited
to activities that benefit the people the organization serves.53
Community Land Trusts (Tax Code
Section 11.1827)
Real and personal property owned by a community land
trust for the purpose of providing affordable housing for low-
income and moderate-income residents, promoting resident
ownership of housing, keeping housing affordable for future
residents, and capturing the value of public investment for
long-term community benefit is exempt.54 The exemption must
be adopted by the governing body of the taxing unit before
July 1.55 Once the exemption is allowed, it does not have to be
claimed in subsequent years unless the ownership changes or
the person’s qualifications for the exemption changes.56
To receive the exemption, the trust must meet certain require -
ments of a charitable organization; own the land for the pur-
pose of leasing it and selling or leasing housing units located
on the land; and engage exclusively in the sale or lease of
housing as provided for in the Local Government Code Sec-
tion 373B.002. The trust must also conduct an annual audit
by an independent auditor and report the results of the au-
dit to the local governing body and the chief appraiser. The
property cannot be exempted after the third year on which
the trust acquired the property unless the trust is offering to
sell or lease the property or is leasing the property according
to Local Government Code Chapter 373B.57
Primarily Charitable Organizations
(Tax Code Section 11.184)
Real and personal property owned by organizations engaged
primarily in performing charitable functions is exempt. Be-
fore applying for an exemption with the appraisal district, an
organization must obtain from the Comptroller’s office a de-
termination letter stating the organization is engaged primar-
ily in performing charitable functions. The chief appraiser
must accept a Comptroller’s office determination letter as
conclusive evidence that the organization engages primarily
in performing charitable functions and is eligible for exemp-
tion. The chief appraiser determines if the organization uses
its property for its charitable purposes. An organization is
required to obtain a new Comptroller’s office determination
letter every fifth year after the exemption is granted. To im-
plement the determination process, the Comptroller’s office
has adopted rules and prescribed a form for applying for a
determination letter .58
The exemption also applies to partially complete improve-
ments or for physical preparation . The exemption for incom-
plete improvements lasts for three years.59
Religious Organizations (Tax Code
Section 11.20)
Places of religious worship and clergy residences owned by
qualified religious groups are exempt. Religious organiza-
tions must be organized and operated primarily for religious
worship or the spiritual welfare of individuals. The religious 50 Tex. Tax Code § 11.18
51 Tex. Tax Code § 11.18(f)
52 Tex. Tax Code § 11.8(e)
53 Tex. Tax Code § 11.18
54 Tex. Tax Code § 11.1827 and Tex. Loc. Gov’t Code § 373B.004
55 Tex. Tax Code § 11.1827
56 Tex. Tax Code § 11.43(c)
57 Tex. Tax Code § 11.1827
58 Tex. Tax Code § 11.184
59 Tex. Tax Code § 11.184
Property Tax Exemptions — 7
organization must meet requirements similar to those im-
posed on charitable and youth organizations.
Generally, if an organization qualifies under this section, it
may exempt property of the following types: actual places
of religious worship, personal property used at the place of
worship, residences for clergy and personal property used at
the residences. A religious organization may use its assets in
performing its functions or the functions of another religious
organization.60
Public property owned by the state or a taxing unit and leased
to a religious organization may receive the religious organi-
zation exemption if the property is used as a place of regular
religious worship and meets other requirements of the Tax
Code. The religious organization applies and takes other ac-
tion relating to the exemption as if the organization owned
the property .61
A property owned by a religious organization and leased for
use as a school may be exempt as a school. A religious or-
ganization’s land held for expanding or constructing a place
of worship may be exempt, so long as the land produces no
revenue during the holding period. The land exemption has a
limit of six years for contiguous property and three years for
non-contiguous property.62
The exemption also applies to partially complete improve-
ments or for physical preparation . The exemption for incom-
plete improvements lasts for three years.63
Exemptions for religious organizations require the property
owner to have a charter or bylaws dedicating property to par-
ticular purposes and providing for disposition of property
upon dissolution .64
Private Schools (Tax Code Section
11.21)
The school exemption applies to property used for school
purposes. As with charitable and religious organizations, the
school must use its assets in performing its function or the
function of another educational organization.65 A property
owned by a religious organization and leased for use as a
school may be exempt as a school.66
The exemption also applies to partially complete improve-
ments or for physical preparation . The exemption for incom-
plete improvements lasts for three years.67
Exemptions for private schools also require the property
owner to have a charter or bylaws dedicating property to
particular purposes and providing for disposition of property
upon dissolution .68
Public Property (Tax Code Section
11.11)
To qualify for the public property exemption, the state of
Texas or a political subdivision of the state must own the
property. The property must be used for public purposes
such as the health, comfort and welfare of the public. State-
owned property is taxable if it is rented to a private busi-
ness that uses it for something inconsistent with the agency’s
duties. The property may not be used to provide housing to
the public other than students or agency employees. However,
if an educational institution uses the property primarily for
instructional purposes and secondarily for residences, the
property is exempt. Additionally, property held for the benefit
of a state junior college, college or university is exempt under
the same conditions .69
Property of a higher education development foundation or an
alumni association located on land owned by the state for
the support, maintenance or benefit of a state institution of
higher education is exempt provided that the foundation or
organization meets the requirement. The organization must
be organized exclusively to operate programs or perform
activities for the benefit of institutions of higher education.
Finally, the property must be used exclusively for those pro-
grams or activities.70
An improvement is considered owned by the state and prop-
erty used for public purposes if it is located on land owned
by the Texas Department of Criminal Justice, leased and used
by the department and subject to a lease-purchase agreement
60 Tex. Tax Code § 11.20
61 Tex. Tax Code § 11.20
62 Tex. Tax Code § 11.20
63 Tex. Tax Code § 11.20
64 Tex. Tax Code § 11.20(c)
65 Tex. Tax Code § 11.21
66 Tex. Tax Code § 11.21
67 Tex. Tax Code § 11.21
68 Tex. Tax Code § 11.21
69 Tex. Tax Code § 11.11
70 Tex. Tax Code § 11.11
8 — Property Tax Exemptions
providing that legal title to the improvement will pass to the
department at the end of the lease term .71
Tangible personal property leased to the state or a political
subdivision is exempt if the property is subject to a lease-
purchase agreement providing that the state or political sub-
division takes legal title to the property at the end of the lease
term. The exemption ends 30 days after the lease terminates
if the state or political subdivision does not take title to the
personal property .72
Real and personal property owned by a nonprofit corporation
engaged primarily in providing chilled water and steam to
certain health-related facilities is exempt . The corporation’s
property would be considered as if it were owned by the state
and used for health and education purposes . Certain facilities
related to transportation leased to a private entity to provide
transportation or for utility purposes are also exempt .73
71 Tex. Tax Code § 11.11
72 Tex. Tax Code § 11.11
73 Tex. Tax Code § 11.11
Property Tax Exemptions — 9
Appendix A
Tax Code Exemption General Application Provisions
No Application Required
Tax Code Section Exemption
11.11 Public Property
11.12 Federal Exemptions
11.14 Tangible Personal Property Not Producing Income
11.145 Income-Producing Tangible Personal Property Having Value Less Than $500
11.146 Mineral Interest Having Value of Less than $500
11.15 Family Supplies
11.16 Farm Products
11.161 Implements of Husbandry
11.25 Marine Cargo Containers Used Exclusively in International Commerce
Annual Application Required
Tax Code Section Exemption
11.111 Public Property Used to Provide Transitional Housing for Indigent Persons
11.1801 Charity Care and Community Benefits Requirements for Charitable Hospital
11.181 Charitable Organizations Improving Property for Low-Income Housing
11.1825 Organizations Constructing for Rehabilitating Low-Income Housing: Property Not Previously
Exempt (Note: See provisions of 11.1826)
11.184 Organizations Engaged Primarily in Performing Charitable Functions (Note: Reapplication
required every fifth tax year instead of annually.)
11.185 Colonia Model Subdivision Program
11.23(b)-(g), (i), (k) or (l)Miscellaneous Exemptions: Federation of Women’s Clubs; Nature Conservancy of Texas;
Congress of Parents and Teachers; Private Enterprise Demonstration Associations; Bison, Buffalo
and Cattalo; Theater Schools; Community Service Clubs; Scientific Research Corporations; and
Incomplete Improvements
11.24 Historic Sites
11.251 Tangible Personal Property Exempt
11.252 Motor Vehicles Leased for Personal Use
11.253 Tangible Personal Property in Transit
11.28 Property Exempted from City Taxation by Agreement
11.311 Landfill-Generated Gas Conversion Facilities
11.32 Certain Water Conservation Initiatives
10 — Property Tax Exemptions
One-Time Application Required, Unless Requested by Chief Appraiser
Tax Code Section Exemption
11.13 Residence Homestead
11.131 Residence Homestead of 100 Percent or Totally Disabled Veteran
11.132 Donated Residence Homestead of Partially Disabled Veteran
11.133 Residence Homestead of Surviving Spouse of Member of Armed Forces Killed in Action
11.17 Cemeteries
11.18 Charitable Organizations
11.182 Community Housing Development Organizations Improving Property for Low-Income and
Moderate-Income Housing: Property Previously Exempt (Note: See provisions of 11.182(e)(3),
11.182(g) and 11.1826)
11.1827 Community Land Trust
11.183 Association Providing Assistance to Ambulatory Health Care Centers
11.19 Youth Spiritual, Mental and Physical Development Associations
11.20 Religious Organizations
11.21 Schools
11.22 Disabled Veterans
11.23(a), (h), (j), (j-1) or (m)Miscellaneous Exemptions: Veterans Organizations; County Fair Associations; Medical Center
Development; Medical Center Development in Populous Counties; and National Hispanic
Institute
11.231 Nonprofit community Business Organization Providing Economic Development Services to
Local Community
11.254 Motor Vehicle Used for Production of Income and for Personal Activities
11.27 Solar and Wind-Powered Energy Devices
11.271 Offshore Drilling Equipment Not in Use
11.30 Nonprofit Water Supply or Wastewater Service Corporation
11.31 Pollution Control Property
11.315 Energy Storage System in Nonattainment Area
11.33 Raw Cocoa and Green Coffee Held in Harris County
11.437 Exemption for Cotton Stored in Warehouse
Property Tax Exemptions — 11
Appendix B
Other Property Tax Code Exemption Summaries
Type Tax Code Section Summary
Public property used to
provide transitional housing
for the indigent
11.111 This section exempts property owned by the United States or a federal
agency and used to provide transitional housing to the poor under a program
operated by the U.S. Department of Housing and Urban Development. The
property is exempted only by ordinance or order of the taxing units in which
the property is located.
Federal exemptions 11.12 Property exempt from ad valorem taxation under federal law is exempt from
taxation.
Tangible personal property
not used to produce income
11.14 Generally, all tangible personal property, other than manufactured homes,
that is not held or used for production of income is exempt from property
taxes. However, the governing body of a taxing unit may, by official action,
continue to tax property other than family supplies, household goods or
personal effects. A structure that is substantially affixed to real estate and is
used or occupied as a residential dwelling is taxable. The term structure does
not include trailer-type vehicles designed primarily for use as temporary living
quarters in connection with recreational, camping, travel or seasonal use.
Income-producing tangible
personal property and
mineral interest property
having value of less than
$500
11.145 and 11.146 An owner’s personal property used to produce income is aggregated to
determine if the owner’s total taxable value in each separate taxing unit is
less than $500 and is exempt. The taxable value of a property owner’s mineral
interests is aggregated to determine if the taxable value within each taxing
unit is less than $500 and is exempt.
Family supplies 11.15 A family is entitled to an exemption from taxation of its family supplies for
home or farm use.
Farm products 11.16 Livestock, poultry, agricultural products, eggs and some nursery products
are exempt when they are still in the hands of the person who raised them.
Nursery products are exempt only if they are still growing on Jan. 1. Livestock,
poultry and eggs must be owned by the person who is paying for their care
on Jan. 1. Farm products include standing timber or timber that has been
harvested and on Jan. 1 is located on the real property on which it was
produced and is under the ownership of the person who owned the timber
when it was standing.
Implements of husbandry 11.161 Machinery and equipment used for farming, ranching and timber production,
regardless of primary design, is exempt.
Cemeteries 11.17 Cemetery property is exempt. The property must be used exclusively for
human burial. The property may not be held for profit.
12 — Property Tax Exemptions
Type Tax Code Section Summary
Charity care and community
benefits requirements for
charitable hospital
11.1801 To qualify as a charitable organization under Tax Code Section 11.18(d)
(1), a nonprofit hospital or hospital system must provide charity care and
community benefits as follows: (1) at a level that is reasonable in relation
to the community needs, as determined through the community needs
assessment, the available resources of the hospital or hospital system, and
the tax-exempt benefits received by the hospital or hospital system; (2) in
an amount equal to at least 4 percent of the hospital’s or hospital system’s
net patient revenue; (3) in an amount equal to at least 100 percent of the
hospital’s or hospital system’s tax-exempt benefits, excluding federal income
tax; or (4) in a combined amount equal to at least 5 percent of the hospital’s
or hospital system’s net patient revenue, provided that charity care and
government-sponsored indigent health care are provided in an amount equal
to at least 4 percent of net patient revenue.
Charitable organization
improving property for low-
income housing
11.181 A charitable organization improving property for low-income housing is
exempt if it meets the Tax Code requirements and uses volunteer labor to
build or repair housing for sale, without profit, to a low-income individual or
family. Each property may be exempt for a maximum of five years after the
property’s acquisition date. Property that received an exemption based on its
ownership by an organization that constructs or rehabilitates property and
uses the property to provide affordable, low-income housing and that was
subsequently transferred by that organization to a charitable organization
is not exempted after the fifth year it was transferred. If the organization
sells the property to an individual or family that is not low income, the
chief appraiser enters a penalty in the appraisal records and notifies the
organization and the buyer. The penalty is equal to the taxes that would have
been imposed in each year the property was exempt plus 12 percent interest.
Community housing
development organizations
(CHDOs) improving
property for low-income
and moderate-income
housing (property previously
exempt)
11.182 Improved or unimproved real property owned by an organization under Tax
Code Section 11.182 is exempt if certain requirements are met. The statute
applies to CHDOs (as provided under 42 U.S.C. §12704) meeting requirements
of charitable organizations under Tax Code Section 11.18(e) and (f) and
engaging exclusively in building or repairing property for sale or rent without
profit to low-income or moderate-income individuals or families and related
activities. An organization may qualify for an exemption only if it received an
exemption under Tax Code Section 11.182 for the subject property for any
part of the 2003 tax year. The statute includes restrictions on eligibility and
requirements pertaining to, under specified conditions, the number of years
property may be exempted, exemption in subsequent years for multifamily
rental property of 36 or more dwelling units, certain property constructed
after Dec. 31, 2001, property used for administrative purposes, property
acquired or sold during the preceding year, and change in ownership. The
statute includes requirements for preparation and delivery of annual audits.
Property Tax Exemptions — 13
Type Tax Code Section Summary
Organizations constructing
or rehabilitating low-income
housing property not
previously exempt
11.1825 Real property owned by an organization under Tax Code Section 11.1825
is exempt if certain requirements are met. Generally, the statute applies to
organizations constructing or rehabilitating and using to provide housing to
individuals or families meeting certain income eligibility requirements and
exemption is prohibited for housing projects constructed by an organization
if construction was completed before Jan. 1, 2004. The statute provides for an
exemption of 100 percent of appraised value of single-family dwellings subject
to sale and, for multi-family or single-family dwellings subject to rental, an
exemption of 50 percent of appraised value unless otherwise provided by a
the governing body of a taxing unit any part of which is located in a county
with a population of at least 1.8 million. An organization may not receive an
exemption from a taxing unit located in a county with a population of at least
1.8 million unless the exemption is approved by the taxing unit’s governing
body. Under such circumstances, the statute sets forth a process by which an
organization must submit a written request for exemption approval to a taxing
unit’s governing body and the governing body must take specified action on
the request and, if the taxing unit approves the exemption, the chief appraiser
must still make a determination that the property qualifies for an exemption.
The statute includes restrictions on eligibility and requirements pertaining to,
under specified conditions, status, history, policies, and board composition
of the organization, income eligibility, housing project square footage
reservation for certain individuals or families, rent, property owned for purposes
of rehabilitation, transfer of property and change of ownership, appraisal
requirements, and public notice of capitalization rates. Tax Code Section
11.1826 includes requirements for preparation and delivery of annual audits.
Charitable associations
providing assistance to
ambulatory health care
centers
11.183 An organization that assists ambulatory health care centers is exempt if it is
exempt from federal income tax; is funded by a grant under the Federal Public
Health Service §330; does not perform abortions or provide abortion services;
and meets other Tax Code requirements.
Colonia Model Subdivision
Program
11.185 Unimproved real property owned by an organization under the colonia model
subdivision program is entitled to an exemption if the organization meets the
requirements of Tax Code Section 11.18(e) and (f); purchased the property or
is developing the property with proceeds of a loan from Texas Department
of Housing and Community Affairs; and owns the property for the purpose
of developing a model colonia subdivision. Buildings and tangible personal
property used for administration can also qualify for an exemption. Penalty
with 12 percent annual interest may be assessed under certain circumstances
if the property is sold.
Youth spiritual, mental
and physical development
associations
11.19 The property of qualified youth development groups affiliated with a state
or national organization is exempt. A youth development association may
use its property in performing its functions or the functions of another youth
development organization.The exemption also applies to partially complete
improvements or physical preparation. The exemption for incomplete
improvements lasts only three years.
Miscellaneous exemptions 11.23 The miscellaneous exemptions apply to specific entities, such as veteran’s
organizations, theater schools and medical center development, as well other
exemptions. See the Tax Code for more information.
14 — Property Tax Exemptions
Type Tax Code Section Summary
Nonprofit community
business organization
providing economic
development services to
local community
11.231 An association that qualifies as a nonprofit community business organization
is entitled to an exemption from taxation of buildings and tangible personal
property it owns and uses exclusively to perform its primary functions. The
exemption also applies to real property owned by the organization consisting
of an incomplete improvement that is under active construction or other
physical preparation and is designed and intended to be used exclusively by
qualified nonprofit community business organizations. It also applies to the
land on which the incomplete improvement is located that will be reasonably
necessary for the use of the improvement.
Use of exempt property by non-qualified nonprofit community business
organizations does not result in the loss of an exemption if the use is
incidental to use by qualified nonprofit community business organizations
and limited to activities that benefit the beneficiaries of the nonprofit
community business organizations that own or use the property.
Historic or archeological
sites
11.24 To qualify for the historic or archeological site exemption, a structure must be
designated a historic building or archeological site and the taxing unit must
vote to grant an exemption. The structure must be designated as a Recorded
Texas Historic Landmark by the Texas Historical Commission or the taxing unit
must designate it as historically significant and in need of tax relief. The taxing
unit decides the amount of the exemption.
Marine cargo containers
used exclusively in
international commerce
11.25 Marine cargo containers used exclusively in international commerce are
exempt. A marine cargo container is a container used to transport goods
by ship, readily handled without reloading to transfer from one mode of
transport to another and used repeatedly. The definition also includes
a container that is fully or partially enclosed, has an open top suitable
for loading or consists of a flat rack suitable for securing goods onto the
container. The exemption is limited to property owned by a citizen or entity of
a foreign country and taxed in a foreign country.
Goods exported from Texas 11.251 The Tax Code provides for a freeport exemption to implement Art. VIII, Sec. 1-j
of the Texas Constitution which exempts goods, wares, ores, merchandise and
other tangible property, other than oil, gas and petroleum products (defined
as liquid and gaseous materials immediately derived from refining petroleum
or natural gas) and aircraft or repair parts used by a certified air carrier. The
freeport goods qualify if they leave Texas within 175 days of the date they are
brought into or acquired in the state. Freeport goods that are aircraft parts may
qualify if they leave the state within 730 days of being acquired or brought into
the state, but this extension requires official action by the taxing unit.
Leased vehicles for personal
use
11.252 Motor vehicles (passenger cars or trucks with a shipping weight of not
more than 9,000 pounds) leased for personal use are exempt. Personal use
means 50 percent or more of its use, based on mileage, is for activities that
do not involve the production of income. By rule, the Comptroller’s office
has established exemption application requirements and procedures to
determine whether a vehicle qualifies. The lessee completes a Comptroller-
adopted form certifying under oath that the vehicle is not primarily used for
the production of income. The owner (lessor) maintains the lessee executed
forms for inspection and copying by the appraisal district. The owner renders
nonexempt vehicles for taxation and provides the chief appraiser with an
additional list of all leased vehicles. A city, by ordinance adopted before Jan. 1,
2002, may tax personal-use leased vehicles.
Property Tax Exemptions — 15
Type Tax Code Section Summary
Tangible personal property
in transit
11.253 The Tax Code provides for an exemption for goods-in-transit to implement
Art. VIII, Sec. 1-n of the Texas Constitution. Goods in transit are goods acquired
inside or outside the state, stored under a bailment contract by a public
warehouse operator at one or more public warehouse facilities that are not
in any way owned or controlled by the owner of the property who acquired
or imported the property and then shipped to another location in or out of
this state within 175 days. The goods do not include oil, gas or petroleum
products or special inventories such as motor vehicles in a dealer’s retail
inventory. To tax goods in transit, taxing units must take official action.
Motor vehicle used for
production of income and
for personal activities
11.254 One passenger car or light truck, if it is owned by an individual and used in
the individual’s business or profession and also used for personal activities,
is exempt. The exemption does not apply to vehicles used to transport
passengers for hire.
Solar- and wind-powered
energy devices
11.27 Persons who install a solar- or wind-powered energy device to produce
energy for onsite use are entitled to exempt the amount of value the device
contributes to their property.
Offshore drilling rigs 11.271 Offshore drilling rigs that are stored in a county bordering the Gulf of Mexico
or a bay or other body of water immediately adjacent to the Gulf of Mexico
are exempt. Drilling rigs are exempt only if they are stored for a purpose other
than repair and are not used for drilling. They must be designed for offshore
drilling. Personal property that is used or part of an offshore spill response
system is exempt if the system is being stored while not in use in a county
bordering the Gulf of Mexico or a bay or other body of water immediately
adjacent to the Gulf of Mexico. Certain ownership requirements apply.
Personal property used in connection with the exploration or production of
oil or gas is not exempt as an offshore spill response containment system.
Tax abatement 11.28 Property owners who have entered redevelopment and tax abatement
agreements with local taxing units under Tax Code Chapter 312 are allowed to
exempt all or part of the property’s value from taxation.
Nonprofit water supply
or wastewater service
corporations
11.30 Property owned and reasonably necessary for a nonprofit water supply or
wastewater service corporation’s functions is exempt. The exemption also
applies to partially complete improvements or for physical preparation. The
exemption for incomplete improvements lasts for three years.
Pollution control 11.31 Property acquired after Jan. 1, 1994 and used for pollution control may
receive an exemption. The exemption applies to all or part of real and
personal property used solely or partly as a facility, device or method to
control air, water or land pollution. The exemption also applies to an extensive
list of clean energy technologies that are used to control pollution. The
Texas Commission on Environmental Quality (TCEQ) is required to adopt
rules to create a list of facilities, devices or methods to control pollution that
are eligible for exemption. Property not eligible for the exemption includes
residential; park or scenic land; vehicles; property subject to a tax abatement
agreement before Jan. 1, 1994; and property owned by a person or company
that manufactures pollution control equipment or provides pollution
control services. To qualify for a use determination, the person or company
must apply to TCEQ for a permit or permit exemption. TCEQ notifies the
chief appraiser about the application and determines the proportion of the
property that is used for pollution control. Then, TCEQ issues a determination
letter to the applicant. The property owner sends the letter with the
exemption application to the appraisal district. The chief appraiser must
accept the letter’s determination as conclusive evidence for the exemption.
16 — Property Tax Exemptions
Type Tax Code Section Summary
Landfill-generated gas
conversion facilities
11.311 A person is entitled to an exemption on personal property that is located on
or in close proximity to a landfill and is used to collect gas generated by the
landfill; compress and transport the gas; process the gas; and deliver the gas.
This property is considered used as a facility, device or method for the control
of air, water or land pollution.
Energy storage system in
nonattainment area
11.315 Energy storage systems used, constructed, acquired or installed to meet or
exceed air pollution laws, rules and regulations is exempt if the governing
body of the taxing unit provides for the exemption by official action. It must
be in an area designated as non-attainment; be in a municipality with a
population of at least 100,000 adjacent to a municipality with a population
of more than two million; have 10 megawatt capacity; and be installed on or
after Jan. 1, 2014.
Certain water conservation
initiatives
11.32 Property designated by a taxing unit as property upon which approved local
initiatives have been implemented may be exempt. The taxing unit may
exempt part or all of the value of property with approved water conservation,
desalination or brush control initiatives. The taxing unit’s governing body
must designate approved initiatives by adopting an ordinance or other law.
Raw cocoa and green coffee
held in Harris County
11.33 This section exempts all raw cocoa and green coffee held in Harris County.
The owner need not claim the exemption, once granted, in subsequent years
unless requested by the chief appraiser.
Cotton Stored in Warehouse 11.437 A person who operates a warehouse used primarily for the storage of cotton
for transportation outside of Texas may apply for an exemption under Tax
Code Section 11.251 for the cotton stored in the warehouse on behalf of all
the owners of the cotton. The cotton must be eligible for exemption under
Tax Code Section 11.251 and is presumed to have been transported outside
of Texas not later than 175 days after the date the cotton was acquired or
imported into Texas.
Property Tax Exemptions — 17
Appendix C
Residence Homestead Exemptions
Exemption
Tax Code
Section Taxing Unit
Total or
Partial
Mandatory or
Local Option Amount
General Residence
Homestead 11.13(b)School Districts Partial Mandatory $25,000
General Residence
Homestead 11.13(n)
Cities, Counties, School
Districts or Special Districts Partial Local Option
An amount up to 20
percent of the property’s
value, but not less than
$5,000
Farm-to-Market
Roads or Flood
Control (if collected)11.13(a)Counties Partial
Mandatory (if
collected)$3,000
Age 65 or Older or
Disabled 11.13(c)School Districts Partial Mandatory $10,000
Age 65 or Older or
Disabled 11.13(d)
Cities, Counties, School
Districts or Special Districts Partial Local Option
An amount adopted by
the taxing unit, but no
less than $3,000
Disabled Veterans 11.22
Cities, Counties, School
Districts and Special Districts Partial Mandatory
An amount determined
by the percentage of
service-connected
disability
Disabled
Veterans with
Homes Donated
by Charitable
Organizations 11.132
Cities, Counties, School
Districts and Special Districts Partial Mandatory
An amount determined
by the percentage of
service-connected
disability
100 Percent
Disabled Veterans 11.131
Cities, Counties, School
Districts and Special Districts Total Mandatory
100 percent of the
property’s value
Surviving Spouse of
U.S. Armed Services
Member Killed in
Action 11.133
Cities, Counties, School
Districts and Special Districts Total Mandatory
100 percent of the
property’s value
Texas Property Tax
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Texas Comptroller of Public Accounts
Publication #96-1740
January 2016
18 — Property Tax Exemptions
Property Tax Exemptions — 17
Appendix C
Residence Homestead Exemptions
Exemption
Tax Code
Section Taxing Unit
Total or
Partial
Mandatory or
Local Option Amount
General Residence
Homestead 11.13(b) School Districts Partial Mandatory $25,000
General Residence
Homestead 11.13(n)
Cities, Counties, School
Districts or Special Districts Partial Local Option
An amount up to 20
percent of the property’s
value, but not less than
$5,000
Farm-to-Market
Roads or Flood
Control (if collected) 11.13(a) Counties Partial
Mandatory (if
collected) $3,000
Age 65 or Older or
Disabled 11.13(c) School Districts Partial Mandatory $10,000
Age 65 or Older or
Disabled 11.13(d)
Cities, Counties, School
Districts or Special Districts Partial Local Option
An amount adopted by
the taxing unit, but no
less than $3,000
Disabled Veterans 11.22
Cities, Counties, School
Districts and Special Districts Partial Mandatory
An amount determined
by the percentage of
service-connected
disability
Disabled
Veterans with
Homes Donated
by Charitable
Organizations 11.132
Cities, Counties, School
Districts and Special Districts Partial Mandatory
An amount determined
by the percentage of
service-connected
disability
100 Percent
Disabled Veterans 11.131
Cities, Counties, School
Districts and Special Districts Total Mandatory
100 percent of the
property’s value
Surviving Spouse of
U.S. Armed Services
Member Killed in
Action 11.133
Cities, Counties, School
Districts and Special Districts Total Mandatory
100 percent of the
property’s value
CITY General Homestead Over 65 Homestead Over 65 Tax Freeze Disabled Person Disabled Tax Freeze
Allen - 50,000 No 25,000 No
Anna - 30,000 No - No
Blue Ridge - 10,000 No 10,000 No
Carrollton 20% ($5,000 min) - No - No
Celina - 30,000 No 30,000 No
Dallas 20% ($5,000 min) 64,000 No 64,000 No
Fairview - 60,000 No 60,000 No
Farmersville - 10,000 No 20,000 No
Frisco - 80,000 No 80,000 No
Garland 8% ($5,000 min) 51,000 No 51,000 No
Josephine - 10,000 Yes 10,000 Yes
Lavon 1% ($10,000 min) 20,000 Yes 20,000 Yes
Lowry Crossing - 15,000 Yes 15,000 Yes
Lucas 8% ($5,000 min) 50,000 Yes 50,000 Yes
McKinney - 50,000 No 50,000 No
Melissa - 10,000 No 10,000 No
Murphy - 50,000 No 50,000 No
Nevada - 10,000 No - No
New Hope - 50,000 No 50,000 No
Parker - 50,000 No - No
Plano 20% ($5,000 min) 40,000 Yes 40,000 Yes
Princenton - 25,000 Yes 25,000 Yes
Prosper 7.5% ($5,000 min) 10,000 Yes 3,000 Yes
Royse City - 6,000 Yes 5,000 No
Sachse - 50,000 Yes 50,000 Yes
Weston - 20,000 Yes 20,000 Yes
Wylie - 30,000 Yes 30,000 Yes
COLLIN COUNTY CITY TAX EXEMPTIONS FOR TAX YEAR 2017
March 2004 Legal Q&A
Bennett Sandlin
Legal Services Director
Q: What is a property tax freeze?
A: Tax freezes are a relatively new concept for cities. A 2003 amendment to the Texas
Constitution, H.J.R. 16, and an enacting bill, H.B. 136, provide that a city may freeze the
homestead taxes of persons over the age of 65, similar to the current mandatory freeze on school
district taxes. For example, if a person over 65 currently pays $800 in city property taxes, that
person will never pay more than that dollar amount during the person’s lifetime, or during the
lifetime of certain surviving spouses if the freeze is enacted. The freeze is at the option of the
city council, except that an election is required if a petition is received by five percent of the
registered voters in the city. TEX. CONST. art. VIII, § 1-b(h).
Q: If we pass a tax freeze, when does it go into effect?
A: The calendar year during which the tax freeze is adopted by the city essentially becomes
the “baseline” year beyond taxes on the elderly or disabled cannot increase. For example, a city
that passes the tax freeze anytime during calendar year 2004 would use the 2004 tax levy as the
baseline amount for the freeze. Beginning in tax year 2005, therefore, the elderly and disabled
would have their city tax bills frozen at the 2004 level regardless of rate or valuation increases.
Put another way, the benefit of the tax freeze does not accrue until the tax year after the calendar
year in which the freeze is enacted. TEX. TAX CODE ANN. § 11.261(b) (Vernon Supp. 2004).
Q: Is there a deadline to pass a city tax freeze?
A: No. A tax freeze enacted anytime in tax year 2004 is fully effective to freeze tax bills at
the 2004 level. TML has been informed of some appraisal districts that are requesting that
anticipated tax freeze ordinances be adopted and communicated to the district prior to a certain
date in 2004, in June for example. These requests are likely based on a misunderstanding of the
tax freeze legislation, which contains no such deadlines.
Q: If our city passes a tax freeze, can it change its mind later?
A: No. The legislation is clear that the tax freeze is permanent once enacted. TEX. CONST.
art. VIII, § 1-b(h).
Q: How does the tax freeze interact with the optional senior tax exemption?
A: The tax freeze appears to be cumulative of the optional exemption.
Example: A city currently grants an optional homestead exemption of $100,000. An elderly
resident owning a homestead valued at $125,000 would therefore currently pay city property
taxes on only $25,000 of value. If the city then adopted a tax freeze, the amount of taxes paid on
the homestead would be “frozen” at the amount paid on the $25,000 of remaining taxable value.
Even if the city later cancelled or reduced the $100,000 optional exemption, the taxes would still
be frozen at the amount paid on the $25,000.
Q: How does the tax freeze interact with the ten percent cap on valuation increases?
A; The freeze is cumulative of the ten percent cap. The ten percent cap is a limit on the
taxable value of the homestead, while the freeze applies to total taxes paid.
Q: How does the tax freeze interact with the senior deferral?
A: Unlike persons under 65, the elderly cannot lose their homesteads for non-payment of
property taxes. TEX. TAX CODE ANN. § 33.06 (Vernon Supp. 2004). This is known as a
“deferral.” The tax freeze is also cumulative of the deferral. As a result, the estates of non-tax
paying seniors “enjoying” the freeze will owe less money than they would otherwise.
Q: With the combination of the optional elderly exemption, the ten percent valuation cap,
the elderly freeze, and the elderly deferral, isn’t it possible that some seniors will be effectively
paying little or no property taxes?
A: Yes.
Q: What about persons who aren’t yet 65 when the tax freeze is enacted?
A: The baseline year for the freeze would be the first tax year in which a person qualifies for
an over-65 homestead exemption under state law.
Q: How is the tax freeze treated under Truth-in-Taxation laws?
A: Taxable value written-off due to a tax freeze will be considered lost value for truth-in-
taxation purposes, meaning the city will get credit for the lost value in their effective and
rollback rate calculations. Id. at 26.012(6)(B). The comptroller’s office is in the process of
revising its effective and rollback rate calculation tables to reflect the new freeze, which should
be available in the comptroller’s 2005 tax publications.
Q: What happens if a senior enjoying a tax freeze moves to a more expensive home in the
same city?
A: The freeze essentially transfers to the new home, but the taxes owed would increase
based on the ratio between the relative values of the old and new homesteads. Id. at 11.261(g).
Q: What happens if a person enjoying a tax freeze moves to a home in a different city?
A: Unlike the school district tax freeze, a city tax freeze is not transferable from city to city.