Waiver of Special Appraisal (WSA)

*Please note –this waiver is typically used by Municipal Utility Districts (MUD), the MUD is waiving the lower appraisal valuation so that whoever owns the property the 1^st year is taxed on full market value and not a discounted value. After the property is purchased from the builder the WSA is removed for the following year.

Texas Tax Code § 23.20

Section 23.20 – Waiver of Special Appraisal - can refer to

(a) an owner of inventory or real property may in writing waive the right to special appraisal provided by Section 23.12 or Subchapter C, D, E, F, or G as to one or more taxing units designated in the waiver. In a tax year in which a waiver is in effect, the property is appraised for each taxing unit to which the waiver applies at the value determined under Subchapter A of this chapter or the value determined under Section 23.12 or Subchapter C, D, E, F, or G, whichever is the greater value.

(b) A waiver of the right to special appraisal provided by Section 23.12 may be submitted at any time. A waiver of the right to special appraisal provided by Subchapter C, D, E, F, or G may be submitted with an application for appraisal under that subchapter or at any other time. A property owner who has waived special appraisal under this section as to one or more taxing units may make additional waivers under this section as to other taxing units in which the property is located.

There are other subsections that can be viewed by clicking on the following URL:

https://casetext.com/statute/texas-codes/tax-code/title-1-property-tax-code/subtitle-d-appraisal-and-assessment/chapter-23-appraisal-methods-and-procedures/subchapter-b-special-appraisal-provisions/section-2320-waiver-of-special-appraisal

Builders Inventory (BI)

*Please note – once the property is purchased as a residence, the property will then be assessed at full market value which would increase the taxes the following year.

Texas Tax Code 23.12

Section 23.12-INVENTORY - (a) Except as provided by Sections 23.121,23.1241, and 23.127, the market value of inventory is the price for which it would sell as a unit to a purchaser who would continue the business. An inventory shall include residential real property which has never been occupied as a residence and is held for sale in the ordinary course of a trade or business, provided that the residential real property remains unoccupied, is not leased or rented, and produces no income.

Builders Inventory refers to inventory that was in the hands of the developer/builder as of January 1^st.