Texas Property Tax Consultant Practice Exam

Which of the following can exempt property from taxation?

1. The Texas State Comptroller

2. The appraisal district

3. Federal law, The Texas Constitution, or the Texas Property Tax code

4. The Commissioner's Court

The correct answer is: Federal law, The Texas Constitution, or the Texas Property Tax code

Property can be exempted from taxation based on a variety of legal frameworks, including federal laws, the Texas Constitution, and the Texas Property Tax Code. Each of these legal texts establishes the parameters under which property can be deemed exempt, identifying specific types of properties or entities that qualify. Federal law might include provisions that exempt certain entities, like non-profit organizations, or properties used for specific purposes from taxation. The Texas Constitution outlines various exemptions for certain property types, such as homesteads and properties owned by disabled veterans. Additionally, the Texas Property Tax Code includes rules that define exemptions depending on the nature of the property or its use, such as agricultural exemptions. The other options do not have the authority or framework to unilaterally exempt property from taxation. While the Texas State Comptroller may play a role in the oversight of taxation and compliance, it does not grant exemptions directly. Appraisal districts are tasked with valuing property for tax purposes and do not have the authority to exempt property. Similarly, while the Commissioner's Court can adopt certain tax exemptions at the local level, it does not possess the broader authority needed to exempt property from taxation across the board. This structure of exemptions is central to understanding property tax management within Texas.