Following the severe flooding in July 2025, Texas Gov. Greg Abbott designated parts of the state disaster areas. The Texas Comptroller of Public Accounts then announced tax relief for affected counties, including extensions for tax filing/payment deadlines and potential property tax exemptions for owners with significant flood damage.
The disaster area designation applies to the following counties: Bandera, Bexar, Burnet, Caldwell, Coke, Comal, Concho, Gillespie, Guadalupe, Hamilton, Kendall, Kerr, Kimble, Lampasas, Llano, Mason, Maverick, McCulloch, Menard, Reeves, San Saba, Sutton, Tom Green, Travis, Uvalde, and Williamson.
Under Texas Tax Code Section 11.35, qualified properties that are at least 15% physically damaged by a disaster in a governor-declared disaster area may receive temporary exemptions on a portion of their appraised values. Damage to landscaping or trees is not included in the assessment calculation for the exemption.
Qualified property includes tangible personal property used for income production, improvements to real property, and manufactured homes used as dwellings. Property owners must apply for the exemption no later than 105 days after the governor declares a disaster area. In this case, the application deadline is October 18, 2025.
Damage Assessment and Exemption Levels
| Level | Damage Assessment | Description | Exemption |
| I | 15% < 30% | Minimal, can still be used as intended | 15% |
| II | 30% < 60% | Nonstructural damage, waterline < 18" above floor | 30% |
| III | 60% < 100% | Significant structural damage, waterline > 18" above floor | 60% |
| IV | 100% | Total loss, repair not feasible | 100% |
The chief appraiser determines qualification and assigns a damage level using information from county emergency management, the Federal Emergency Management Agency (FEMA), and other sources. The chief appraiser must send written notice of approval (and any modifications to the determination) or denial within five days of determination.
The exemption amount is calculated by multiplying the adjusted appraised value by a fraction, which is the number of days remaining in the tax year after the disaster declaration divided by 365.
Expiration
The exemption expires on January 1 of the first tax year in which the property is reappraised.
BDO Insights
- Affected property owners should apply promptly and ensure all damage documentation is available, noting that damage to landscaping or trees is not included in the assessment calculation.
- Taxpayers must complete Comptroller Form 50-312, Temporary Exemption Property Damaged by Disaster, and should consider consulting with their tax advisors on proper documentation and information.
Please visit BDO’s State & Local Tax and Property Tax Services pages for more information on how BDO can help.