Texas Has a New Tax Law:
Why to Choose a Real-time Auditing & Monitoring Solution over a Manual Audit Process
On May 27, 2023 a new tax law was passed in Texas that requires chief appraisers of an appraisal district to identify ineligible homestead exemptions at a minimum of every 5 years. Historically, appraisal districts in Texas have only been required to identify homestead eligibility at the point of application. While some districts perform audits or request refiles every few years to identify ineligible exemptions, the existing controls in some jurisdictions will not meet the new law’s requirements.
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CE Credits - New Texas Homestead Law (2023) With Dallas CAD
Understand the implications of the new amendments to TX 11:43 and what it means for your office.
New Requirements Shift Accountability to CADs
The State of Texas Section 11.43, Tax Code, has been amended with subsection h-1 requiring a 5 year review cycle on all exemptions. The amendment states:
“The chief appraiser of an appraisal district shall develop a program for the periodic review of each residence homestead exemption granted by the district under Section 11.13 to confirm that the recipient of the exemption still qualifies for the exemption. The program must require the chief appraiser to review each residence homestead exemption at least once every five tax years.”
Key Dates to Know
September 1, 2023 – Law goes into effect
January 1, 2024 – Program to fulfill new requirements must begin no later than this date
Comparison of Approaches
Real-time, proactive auditing & monitoring versus rotating single point-in-time, manual audits every 5 years.
You may have performed manual, single point-in-time audits in the past, and could continue with this costly, cumbersome process at an increased cadence to achieve compliance. Or, you can set your compliance on auto-pilot with a real-time, proactive auditing and monitoring solution. Take a look at how the solutions compare here:
Click image to view side-by-side comparison
Achieve Compliance with TrueRoll
TrueRoll is the only software solution built specifically to help CAD offices be more efficient and accurate at administering homestead exemptions. TrueRoll will ensure compliance with the new law by providing real-time auditing and monitoring that:
Scans 1,000+ residence- focused data sources, including rentals, voters, and TX DPS data to identify unqualified exemptions
Provides a report on all actions taken in review of each monitored exemption, in order to confirm compliance
Reconciles errors with speed, accuracy, and transparency to keep your tax rolls up to date
Offers creative funding to get your project underway quickly