Texas Property Tax Consultant Practice Exam

What may potentially exempt income-producing tangible personal property and mineral interests from taxation?

1. Having a value of $1,000 or less

2. Submitting an application to the chief appraiser

3. Having a value of less than $500

4. Field inspection discovery by the appraisal district

The correct answer is: Having a value of less than $500

The potential exemption of income-producing tangible personal property and mineral interests from taxation is primarily based on the value of the property. Specifically, in Texas, property that has a value of less than $500 may qualify for an exemption from taxation. This is consistent with the principle that smaller, less valuable items are not seen as significant enough to generate tax revenue, thus reducing the administrative burden of taxing such low-value items. In contrast, while submitting an application to the chief appraiser is necessary for certain types of property to receive an exemption, it does not inherently guarantee that all income-producing property will be exempt from taxation based solely on that submission. Moreover, having a value of $1,000 or less does not meet the specific threshold that qualifies for exemption, since the relevant threshold is set at $500. Field inspection discovery by the appraisal district may help identify taxable property, but this does not directly contribute to an exemption; rather, it aims to ensure that all applicable property is assessed correctly.