Temporary Exemption for Disaster Damage

Tax Code Section 11.35 allows a qualified property that is at least 15 percent damaged by a disaster in a governor-declared disaster area to receive a temporary exemption of a portion of the appraised value of the property. A property owner must apply for the temporary exemption no later than 105 days after the governor declares a disaster area.

Governor Abbott declared the entire state of Texas a disaster area on February 12, 2021.  The deadline for filing the application for the exemption is May 28, 2021.

Link to application: Temporary Exemption for Disaster Damage Form

Return the completed application with requested documentation to:

Grayson Central Appraisal District
512 North Travis
Sheman, TX 75090

or E-mail to webmaster@graysonappraisal.org

Qualified property includes:

  • tangible personal property used for income production;
  • improvements to real property; and
  • certain manufactured homes.

The appraisal district determines if the property qualifies for the temporary exemption and assigns a damage assessment rating of Level I, II, III or IV. The appraisal district may rely on information from a county emergency management authority, the Federal Emergency Management Agency (FEMA) or other appropriate sources when making this determination

  • Level I means “the property suffered minimal damage and may continue to be used as intended.”
  • Level II “means that the property has suffered only nonstructural damage, including nonstructural damage to
    the roof, walls, foundation, or mechanical components, and the waterline, if any, is less than 18 inches above
    the floor.”
  •  Level III “means that the property has suffered significant structural damage requiring extensive repair due to
    the failure or partial failure of structural elements, wall elements, or the foundation, or the waterline is at least
    18 inches above the floor.”
  • Level IV means “the property is a total loss . . . repair of the property is not feasible.”

Level

Damage Assessment Damage Description

Exemption Percentage

I 15% < 30% Minimal, may continue to be used as intended 15%
II 30% < 60% Nonstructural damage and waterline <18″ above floor if flooded. 30%
III 60% < 100% Significant structural damage and waterline 18″+ above floor if flooded 60%
IV 100% Total loss; repair is not feasible 100%

 

The damage assessment rating determines the percentage of the appraised value of the qualified property to be exempted. The amount of the exemption is determined by multiplying the property value after applying the damage assessment rating to a fraction (365 divided by the number of days remaining in the tax year after the date the governor declares the disaster).

 

To expedite the application review process, fill out and submit an online application if you qualify: Temporary Exemption for Disaster Damage.

You can also download (Temporary Exemption for Disaster Damage form) and submit the completed application with supporting documentation via email to webmaster@graysonappraisal.org, mail or hand delivery to:

Grayson Central Appraisal District
512 N. Travis St. 
Sherman, TX 75090

Website last updated on: 4/05/2021 3:01:17 PM CT (UTC -7:00)