Texas Property Tax Consultant Practice Exam

Which type of property is exempt from taxation under Texas law?

1. A single family residence

2. Business personal property

3. Foreign-owned real estate

4. Agricultural land not in use

The correct answer is: A single family residence

In Texas, certain types of property can be exempt from taxation, and a single-family residence commonly falls under these exemptions, particularly when it is the owner’s principal residence. The reason for this exemption is to encourage home ownership and alleviate the tax burden on individuals living in their homes. Exemptions for single-family residences in Texas can include the general homestead exemption, which provides some reduction in the property’s taxable value. Additionally, homeowners may qualify for other exemptions based on specific criteria, such as being elderly, disabled, or a veteran. While the other types of property listed do face taxation, such as business personal property and foreign-owned real estate, agricultural land may also be subject to specific exemptions, particularly if it is actively used in agricultural production rather than being "not in use." Hence, the correct choice reflects an essential aspect of property tax in Texas related to personal residences.