A Texas homeowner with the over-65 tax freeze sells the homestead and purchases a new home. Under Texas Tax Code, can the homeowner transfer the tax ceiling to the new property?
Correct Answer
B) Yes, the homeowner can transfer a proportional tax ceiling to the new homestead, calculated based on the percentage the ceiling represented of total taxes at the original property
Under Texas Tax Code §11.26(g), an over-65 homeowner who moves to a new homestead can transfer the tax ceiling. The new ceiling is calculated as a percentage: the ratio of the old ceiling to what the total tax would have been without the ceiling, applied to the new property's tax. This creates a proportional freeze.
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