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INFORMAL REPORT TO CITY COUNCIL MEMBERSNo. 10213
January 15, 2019
To the Mayor and Members of the City Council
Page 1 of 2
SUBJECT: AUDIT OF PROPERTY TAX EXEMPTIONS
This informal report has been prepared to inform the City Council about property tax exemptions
and the roles of the City and the appraisal districts in determining if these exemptions are applied
and taken properly.
The City offers a variety of local tax exemptions from property appraised values that may be partial
or total exemptions. Requirements vary by exemption.
The most familiar among these are the homestead and the over 65 exemptions. These exemptions
require a one-time application, unless requested by the district. The chief appraiser is responsible
for verifying the applications and either approving or denying these requests.
In addition, the City offers the following exemptions (with the responsible department), which are
explicitly approved by the City:
Historic Planning & Development
Neighborhood Empowerment Zones Neighborhood Services
These exemptions are granted upon application to the City as approved by the City Council via
Mayor and Council Communication. The departments with oversight of these programs are charged
with monitoring of the exemptions with the appraisal districts, including accuracy of exemption,
interpretation of the policy and expiration of the exemption. The Budget and Analysis Division has
begun to work with departments to assist in verifying accuracy and completeness of information
sent to the appraisal districts.
The following chart presents the number and value of exemptions granted for FY2019 from the
Tarrant Appraisal District.
Estimated Value of
Number of Percentage of All Parcels
Tax Exemption Foregone Tax
Parcels in City of Fort Worth
Revenue, FY2019
General Residence Homestead 142,487 20.6% $43,437,733
Over 65/Disabled 41,659 6.0% $12,213,502
Historic Sites 375 0.1% $507,046
Neighborhood Empowerment Zones 135 0% $2,028,747
Total 184,656 26.7% $58,187,029
Internal Audit does not have routine reviews of property taxes, exemptions and/or abatements, they
will audit when requested by the city manager and City Council and when included in their Annual
Audit Plan. The recent audit of the property tax exemptions initiated the refinement of the historic
and neighborhood empowerment zones exemption processes to improve the accuracy of data
submitted to the appraisal districts and to enhance ongoing monitoring.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERSNo. 10213
January 15, 2019
To the Mayor and Members of the City Council
Page 2 of 2
SUBJECT: AUDIT OF PROPERTY TAX EXEMPTIONS
The Tarrant Appraisal District actively works to ensure the exemptions are as accurate as possible.
They district engages in various activities to aid in monitoring exemptions. The activities may
include the use of large data bases to search for property owners, monitoring of obituaries, and
requesting that property owners reapply for some exemptions. The actions are aimed at identifying
ineligible homestead exemptions or exemptions that are no longer applicable. The district is also
reviewing processes and looking at new options to enhance their exemption verification for 2019.
It is important to note that the Tax Code provides no direction or requirements for verifying data.
Additionally, there are private sector options to assist in maintaining property tax exemption
integrity. These services typically compare the exemption accounts to their database to potentially
identify ineligible expenses. The City currently does not engage in this monitoring.
If you have any questions, please contact Terry Hanson, Assistant Director, Performance and
Budget Department, at (817) 392-7934.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS