Texas Property Tax Consultant Practice Exam

What is the requirement for most absolute exemptions from taxation?

1. In good physical condition

2. In compliance with the American Disabilities Act

3. Used exclusively by the qualified exempt organization

4. Rendered to the appraisal district each year

The correct answer is: Used exclusively by the qualified exempt organization

The requirement for most absolute exemptions from taxation is that the property must be used exclusively by the qualified exempt organization. This means that to qualify for an absolute exemption, the property must not be utilized for any activities that would contradict the specific purpose that grants it the exemption. For example, a property owned by a charitable organization must be used solely for charitable purposes to qualify for an exemption under Texas property tax law. Properties used for other purposes, even if they are owned by an exempt organization, would typically lose the exemption. This ensures that the tax benefits are reserved for properties genuinely fulfilling their intended exempt purposes, preserving the integrity of the exemption system. Therefore, adherence to this exclusive use requirement is critical for maintaining an absolute exemption from property taxes.