Chapter 3

Question 1

what does the term situs mean?

Answer 1

place where the property is taxable

Question 2

What does the term jurisdiction to tax mean?

Answer 2

Jurisdiction to tax refers to the state in which property can be taxed.

Question 3

Under the federal constitution, what are the general rules for taxing property that is in transit throughout the state?

Answer 3

the general rule is that goods that are in transit through the state cannot be taxed.

Question 4

Under the federal constitution, what are the general rules for taxing carrier equipment that operates in more than one state?

Answer 4

carrier equipment that operates in more than one state may be taxed if the value is allocated to fairly reflect the use in the state.

Question 5

What are four circumstances in which the property tax code states that Texas will have jurisdiction to tax property?

Answer 5

-real property within states bounds
-personal property that is in Texas for more than a temporary period
-personal property that is normally located in Texas but temporarily out
-personal property that is continually used in Texas whether or not the use occurs on a regular basis.

Question 6

What is an exemption?

Answer 6

the exclusion or some or all of the property’s value from taxation

Question 7

what is the difference between mandatory and a local option exemption

Answer 7

-taxing units are required to give mandatory exemptions
-they have the option whether or not they choose to give local option exemption

Question 8

Depending on the type of exemption, the chief appraiser will look at one of two alternative qualification dates for exemptions. What are the two qualification dates?

Answer 8

The two dates are either January first of the day the property was acquired

Question 9

Summarize how tax abatements are granted, what kinds of property they apply to, and how long abatements lasts.

Answer 9

tax abatement is granted by contract between the taxing unit and the property owner
a city or county must first designate the area of reinvestment zone
an abatement agreement may last up to 2 years

Question 10

In order for a charitable organization to keep an exemption on property, what must it use the property for?

Answer 10

exclusively charitable purposes or incidental uses that benefit the clients that the organization serve

Question 11

What does the tax code say about the kinds of activities that a charitable organization may perform?

Answer 11

activities listed in section 11.18

Question 12

What does the term public property mean? what is a public purpose?

Answer 12

public property is property that is owned by the state or political subdivisions
a public purpose is one that is primarily for the health comfort and welfare of the public

Question 13

there are 2 main deadlines for filing exemption applications. what are they?

Answer 13

Before May 1st and one year from the date of acquisition

Question 14

When would someone have to file a new homestead exemption?

Answer 14

if the ownership of the property changed
or the chief appraiser required them to file a new one

Question 15

what are four actions that the chief appraiser may take when acting on an exemption application?

Answer 15

-grant the application
-modify the application and then grant
-disapprove the application and request more info
-deny the application