What Texans Need to Know About Disaster Exemption Relief

The severe storms and catastrophic flooding that struck Central Texas around the July 4th holiday in 2025 left a path of devastation, particularly in Kerr County and its surrounding communities.  For homeowners and business owners now facing the daunting task of rebuilding, the financial strain can be overwhelming. Fortunately, Texas law provides a specific form of property tax relief designed to ease this burden. This relief comes from a temporary disaster exemption established under Texas Tax Code Section 11.35. Understanding these provisions is a critical step toward financial recovery for those affected by the floods.

Our article:

• Provides a comprehensive overview of this exemption

• Explains who qualifies 

• Walks through how to apply and what to expect during the process

Understanding the Temporary Disaster Exemption

The temporary disaster exemption is not a new concept; rather, it has existed for some time. The Texas Legislature enacted it in 2019 following the widespread destruction caused by Hurricane Harvey.

Its purpose is to provide a standardized, statewide mechanism for property tax relief in the wake of a governor-declared disaster.

What Properties Qualify?

1. Improvements to Real Property: This includes your house, garage, and other permanent structures on your land. Critically, the value of the land itself is not eligible for this exemption; only the structures are. 

This distinction is vital because eligibility is based on the damage relative to the structure's value, not the total property value listed on your appraisal notice.

2. Certain Manufactured Homes: A manufactured home used as a dwelling under Section 1201.003 qualifies, regardless of whether it is legally treated as real or personal property.

3. Tangible Personal Property Used for Income: This applies to businesses and covers items like equipment, machinery, furniture, and inventory. 

To be eligible, the company must have filed a property report, known as a rendition, with the appraisal district for the tax year in which the disaster occurred.

4. Physically Damaged Property: Lastly, a key legal point in Tax Code 11.35(a) is that this exemption applies only to physical damage to the property, not to economic losses. Example: A business losing revenue due to road closures or a property’s market value declining due to its location in a disaster zone does not qualify for relief under this statute.

The Official Disaster Declaration

No relief is possible until the governor officially declares a disaster area, as this action legally triggers the exemption process.

On July 4, 2025, Governor Greg Abbott issued a state disaster declaration for numerous Central Texas counties that were impacted by severe flooding. The Governor has since added more counties as needed, including five more on July 16, 2025.

According to Section 11.35(b), the day the Governor makes the disaster declaration marks the start of the 105-day countdown for property owners to apply for the temporary tax exemption.

In addition to the state declaration, a Presidential Major Disaster Declaration was also approved on July 6, 2025, unlocking federal aid programs like FEMA grants and Small Business Administration (SBA) loans. It’s essential to understand that these are separate programs and require different applications. 

Applying for federal property tax relief either through public assistance or individual assistance is a separate process from seeking assistance from FEMA or the SBA. 

For the Texas-specific disaster exemption, you must file a direct disaster exemption application with your county appraisal district to qualify for property tax relief.

Are You Eligible? A Practical Assessment

To qualify, your property must be located in a declared disaster county and have suffered physical damage of at least 15% of its improvement value.  

To determine if you meet this threshold, follow these steps:

1. Gather Damage Costs: Collect repair estimates from contractors, insurance adjuster reports, or receipts for work already done.

2. Find Your Improvement Value: Look at your latest property tax appraisal notice from your appraisal district. You will see separate values for "Land" and "Improvements." Use only the "Improvement" value for this calculation.

3. Calculate the Damage Percentage: Divide your total damage cost by the improvement value to see if you qualify. For example, if your home’s improvement value is $200,000 and your repair costs are $35,000, the calculation is $35,000 / 200,000 = 0.175, or 17.5%. Since this exceeds the 15% threshold, your property is eligible for the program.

You can also use this disaster exemption calculator provided by the Travis Central Appraisal District.

Note that damage to items like landscaping, trees, swimming pools, or fences cannot be included when calculating the 15% damage threshold, as the exemption applies only to the eligible structures themselves.

Eligible Counties from the July 2025 Central Texas Floods

Below are the eligible counties that qualify for the individual Texas disaster exemption assistance:

* Note that some counties' disaster exemption deadline falls on October 18 or 19, 2025, but due to the weekend and Texas property tax code, they were moved to Monday, October 20, 2025.

The Four Tiers of Relief

Once a property is deemed eligible, the chief appraiser will assign it a damage level. The level and rating below determine the percentage of the improvement value that will be temporarily exempt from your property taxes.

Note, for flood victims, who are most affected by this most recent tragedy, the assessment includes a key objective measure: the height of the waterline inside the structure. 

Documenting this with photos could be the difference between a Level II and a Level III exemption, effectively doubling your tax relief.

Calculating Your Potential Tax Savings

The exemption is prorated based on the number of days remaining in the tax year after the date of the disaster declaration. The formula is:

(improvement value X exemption percentage) X days remaining in year / 365 ​= prorated exemption amount

Below is an example calculation for a Kerr County homeowner with a $200,000 improvement value assessed with Level II (30%) damage from the July 2025 flood (with 180 days left in the year):

• Step 1: $200,000 X 0.30 = $60,000

• Step 2: 180÷365 = 0.493

• Step 3: $60,000 X 0.493 = $29,580

In this example, $29,580 would be subtracted from the property's taxable value for the 2025 tax year only.

The Application: Filing Form 50-312 in Kerr County

The application process requires meticulous attention to detail and strict adherence to deadlines.

The Form and Deadline

You must use the official Texas Comptroller Form 50-312, "Temporary Exemption Property Damaged by Disaster.” This form must be filed with your county appraisal district no later than 105 days after the governor’s declaration in your area.

For most Central Texas counties affected by the July 2025 floods, the deadline is Monday, October 20, 2025.

Note that if your county was added after the initial July 4 declaration, you’ll have 105 days from that date to file. And in some cases, if your chief appraiser extended the deadline for good cause shown, it could be later.

Supporting Documents

In Texas, the burden of proof rests on the property owner. Thus, you should submit a complete package of supporting evidence with your application:

• Dated photographs of all damage, especially the high-water mark.

• Itemized repair estimates from contractors.

• Receipts for any completed repairs.

• Insurance claim documents and adjuster reports.

• FEMA damage inspection reports, if available.

Submit your completed Form 50-312 and all supporting documents to your county appraisal district before the October deadline.

The Post-Application Process

After you apply, your CAD’s chief appraiser will review your application and issue a written notice of approval, modification, or denial within five days of making a decision. 

If you disagree with the decision — for example, if your application is denied or you believe the damage level assigned is too low — you have the right to protest to your local Appraisal Review Board (ARB).  

If your exemption is approved after you have already paid your taxes, the tax assessor-collector will calculate the refund due and mail you a check.  

Finally, remember this exemption is temporary. It expires on January 1 of the first tax year in which the property is reappraised, meaning the benefit is only applicable for the 2025 tax year.

Other Disaster-Related Tax Assistance

In addition to the temporary exemption, other relief measures may be available:

• Continuation of Homestead Exemption: If your home is rendered uninhabitable, you can continue to receive your regular homestead exemption while you rebuild for up to two years, as long as you intend to return. 

• Installment Payments: Property owners in disaster areas may be eligible to pay their property taxes in four equal, interest-free installments.  

• Sales Tax Exemption: Labor charges for repairing damaged residential and business property are exempt from sales tax, though the materials used for repairs remain taxable.

• Federal Tax Relief: The IRS announced that tax relief for individuals and businesses in parts of Texas has been extended until February 2, 2026, to file various federal individual and business tax returns and make tax payments.

Other Helpful Resources

• Texas Comptroller: Property Taxes in Disaster Areas and During Droughts

• FEMA.gov

• DisasterAssistance.gov

Texas Appraisal Districts' Disaster Exemption Pages:

• Burnet County CAD

• Kerr County CAD Disaster Exemption Page

• San Saba County CAD

• Tom Green County CAD

• Travis County CAD

• Williamson County CAD

How Ownwell Can Help

At Ownwell, we understand that property taxes can be a significant burden, especially when you're already facing the challenges of disaster recovery.

Texas homeowners can maximize property tax savings through our comprehensive appeal and exemption services. However, disaster exemption applications must be filed with the county appraisal district.

The devastating floods that struck Central Texas have deeply affected our communities, and we stand in solidarity with all those impacted. 

Ownwell and our employees have contributed to the Kerr County Flood Relief fund through corporate and employee-matched donations, because supporting our neighbors during their time of greatest need is simply the right thing to do.

If you have questions about your property taxes or need assistance with appeals and exemptions beyond the disaster relief program. In that case, our team is here to help you navigate these complex processes and potentially reduce your tax burden during this challenging time.