Exemptions / Tax Deferral
Exemptions
Texas law provides for certain exemptions and deferrals to help reduce
the property tax obligations of qualifying property owners. These
exemptions/ tax reliefs are administered by the Montague County Appraisal District (MCAD).
You must apply with the MCAD for any exemptions you may be eligible for. MCAD will notify the Montague County Tax Office of any changes to
your property. Please note: These changes may take 4 to 6 weeks to reflect on our website.
Please refer to the Montague County Appraisal District website for all applicable forms and any additional information.
Over65 (OA65) / Disables Person (DP) / Disabled Veteran (DV)
Eligibility
If you are 65 years of age or older (OA65), a disabled person(DP), or a
disabled veteran (DV) with a service-connected disability, and the
property is your residence homestead, you may qualify for an additional
exemption on your property. These exemptions can freeze your taxes per
the Property Tax Code (section 11.26) and impact your tax bill if you
are eligible.
Exemptions are administered by the Montague County Appraisal District. Apply for your OA65, DP, or DV Exemptions online for free.
School Tax Ceiling
The homestead tax ceiling limits the school taxes you must pay on your
residence. When you qualify your home for an Over-65 or Disabled Person
Homestead Exemption, the school taxes on that home will not increase as
long as the exemption is in place. The tax ceiling freezes your school
taxes at the amount you pay in the year you qualify for the exemption.
The school taxes on your home may go below the ceiling but not above. If
you improve the home (other than normal repairs or maintenance), the
tax ceiling may be adjusted to account for the value of the new
additions (i.e., a new garage, extra room, or other fixed structure that
adds value).
Transferring a Tax Ceiling
A tax ceiling can be transferred from a recently sold homestead to your new homestead within Texas. Contact the Montague County Appraisal District for the necessary steps to take.
Please note: Once qualified for an exemption, you may
contact the Montague County Tax Assessor/Collector's office. We will
gladly assist you with any questions regarding your tax bill.
Deferral
Texans who are 65 years of age or older or disabled persons/veterans may
postpone paying current and/or delinquent property taxes due on their
homes by signing a residence homestead tax deferral. The individual must
own the property and occupy the property as a residence homestead.
Utilizing the deferral exemption is only a postponement of the taxes;
this does not eliminate the responsibility of paying taxes on your
property.
When filing a tax deferral, you should know the following:
- Once the affidavit is on file, any and all taxes will accumulate with 5% interest per year for each tax year that is due.
- A tax deferral does not cancel penalties, interest, or attorney fees that were already due.
- Taxes will become due when the homeowner or surviving spouse no longer
owns and resides in the home. If the tax debt remains unpaid after 180
days from the change in residency, full penalties and interest will be
imposed, and taxing units may take legal action to collect the past due
amount.
- The law extends the tax deferral to the surviving spouse of the person
who deferred taxes on the homestead if the surviving spouse is at least
55 years old when the deceased spouse passes away.
If you have a Mortgage/Reverse Mortgage Company, you will need to know:
- Before applying for a deferral, you should contact your mortgage company to ensure they honor a deferral under your agreement.
- Your mortgage company can choose to pay your taxes at any time while they have a lien on your property.
- If you plan on participating in a reverse mortgage, they will require
all taxes to be paid in full annually, including all past due taxes,
before they will complete your paperwork.
To postpone tax payments, you must file a Tax Deferral Affidavit (PDF) and mail it to:
Montague County Appraisal District
PO Box 121
Montague TX, 76251
Or in person at:
Montague County Appraisal District
7549 TX-175
Montague TX, 76251
To remove the tax deferral, please complete the Deferral Removal Form (PDF) and submit it to the Montague County Appraisal District at the addresses above.