Understanding Your Cancelled or Reduced Exemption Notice

Each year, appraisal districts across Texas are required by law to review property tax exemptions and notify property owners of any changes. If you recently received a Cancelled or Reduced Exemption Notice, this article explains what it means and what you may need to do next.

Why Did I Receive This Notice?

Under Texas Property Tax Code §25.193, appraisal districts must send a notice when a property that had an exemption in the prior year no longer has that same exemption on file for the current year.

This notice does not necessarily mean something is wrong, but it does mean a change has occurred that may affect your property taxes.

Common Reasons for This Notice

You may receive this notice for several reasons, including:

Change in Property Ownership
If you recently purchased your property, the exemptions applied to the previous owner do not automatically transfer to you.
You may need to apply for your own exemptions, such as a Residence Homestead Exemption.

Change in Exemption Type
In some cases, an exemption may be updated or replaced to better reflect eligibility.

Examples include:

• A Disabled Person Exemption being replaced with an Over-65 Exemption when the property owner qualifies for the latter
• Adjustments made to ensure you receive the most beneficial exemption available

No Response to a Homestead Audit Request
Appraisal districts periodically review homestead exemptions to confirm eligibility.
If you received a homestead audit letter and did not respond, your exemption may have been removed as required by law.

Ownership or Eligibility Changes (e.g., Deceased Owner)
If records indicate that a property owner may have passed away or is no longer eligible:

• The appraisal district may request updated ownership or qualification information
• If no response is received, exemptions may be removed until eligibility is confirmed

What Should I Do?

If you receive a Cancelled or Reduced Exemption Notice:

• Review the notice carefully to understand which exemption was affected
• Determine if you still qualify for the exemption
• Submit a new application if needed

Applying or reapplying is often quick and can lessen unnecessary increases in your property tax bill.

Key Takeaway

Receiving this notice is common and often easily resolved. It simply means your exemption status has changed and may need to be updated or reapplied.

Need Help?

If you have questions or believe your exemption was removed in error, we’re here to help.

Contact Information:
Bexar Central Appraisal District
411 N Frio St
PO Box 830248
San Antonio, TX 78283-0248
Phone: 210-242-2432
Fax: 210-242-2454 or 210-242-2453

Help Center: help.bcad.org