Texas Property Tax Consultant Practice Exam

What must occur for a single family residence to qualify for an exemption?

1. An annual application must be filed

2. The property must be owner occupied

3. The owner must be 65 years of age or older

4. The property must be free and clear of any encumbrances

The correct answer is: The property must be owner occupied

For a single-family residence to qualify for an exemption, it is essential that the property be owner-occupied. This requirement underscores the intention behind property tax exemptions, which are often designed to relieve the financial burden on homeowners who reside in the property as their primary residence. Owner occupancy is a critical factor because it differentiates between investment properties and homes where individuals or families live, ensuring that the benefits of the exemption are directed toward those who need it most—actual residents of the property. While other factors, such as age or financial status, can influence eligibility for certain specific exemptions (for example, exemptions for seniors), the fundamental criterion across many exemption types is that the home must be occupied by the owner. This not only aligns the exemption with its purpose but also helps to prevent abuse of the system, where individuals might seek to claim benefits on properties they do not actually inhabit.