Sign up for The Brief, our daily newsletter that keeps readers up to speed on the most essential Texas news.
U.S. Rep. Vicente Gonzalez, D-McAllen, and his wife ran afoul of property tax law for at least eight years as each claimed homestead exemptions on properties they separately owned.
They fixed the issue last year, when his wife, Lorena Saenz Gonzalez, removed the homestead exemption on her property. But from 2014 to 2021, Hidalgo County records show that Vicente Gonzalez was claiming a homestead exemption on a property in McAllen valued this year at $527,054, while his wife was also claiming one on another property in the city valued this year at $287,131. That saved them at least $2,300 in property taxes on the second property, according to a Texas Tribune analysis.
What you can expect from our elections coverage
-
How we explain voting
We explain the voting process with election-specific voter guides to help Texans learn what is on the ballot and how to vote. We interview voters, election administrators and election law experts so that we can explain the process, barriers to participation and what happens after the vote is over and the counting begins. Read more here.
-
How readers inform our work
Instead of letting only politicians set the agenda, we talk to voters and scrutinize polling data to understand ordinary Texans’ top concerns. Our readers’ questions and needs help inform our priorities. We want to hear from readers: What do you better want to understand about the election process in Texas? If local, state or congressional elected officials were to successfully address one issue right now, what would you want it to be? What’s at stake for you this election cycle? If we’re missing something, this is your chance to tell us.
-
How we hold officials accountable
We do not merely recount what politicians say, but focus on what they do (or fail to do) for the Texans they represent. We aim to provide historical, legal and other kinds of context so readers can understand and engage with an issue. Reporting on efforts that make voting and engaging in our democracy harder is a pillar of our accountability work. Read more here.
-
How we choose what races to cover
We aren’t able to closely cover all 150 races in the Texas House, 31 in the Texas Senate or 38 for the Texas delegation in the next U.S. House. We need to choose what races we cover closely by using our best judgment of what’s most noteworthy. We take into account factors like power, equity, interest and competitiveness in order to determine what warrants more resources and attention. Read more here.
-
How we cover misinformation
In reporting on falsehoods and exaggerations, we clearly explain why it is untrue and how it may harm Texans. Sometimes, we choose to not write about misinformation because that can help amplify it. We’re more likely to debunk falsehoods when they are spread by elected officials or used as a justification for policy decisions. Read more here.
- Read more
In Texas, married couples generally can claim only one such exemption, which is meant to provide some tax relief on properties considered “principal residences.” Homestead exemptions cannot typically be claimed on commercial properties, second homes or income properties.
Gonzalez said the second property is one that his wife owned prior to their marriage in 2008 and that she forgot to remove the homestead exemption on it until last year.
”It was a simple oversight that was voluntarily corrected as soon as she found out,” Gonzalez said in a statement.
After the Tribune inquired, Gonzalez spokesperson James Rivera said the congressman has spoken with the county appraiser’s office and intends to pay any back taxes that are owed.
Gonzalez’ wife removed the homestead exemption from her property in October 2021, a county appraiser said.
“We are currently reviewing this case further and we will be doing what is statutorily required within the law,” Jorge Gonzalez, the assistant chief appraiser for Hidalgo County Appraisal District, said in an email.
Gonzalez is facing his most competitive race yet in November as he seeks another term in the nationally targeted 34th District, where U.S. Rep. Mayra Flores, R-Los Indios, is the incumbent.
A homestead exemption shields a portion of a property’s appraised value from being taxed.
All Texas homeowners enjoy a homestead exemption on their primary residence that can be applied toward their school property tax burden — which typically makes up the largest part of a local property tax bill. This year, that homestead exemption was set at $40,000, after voters in May approved a constitutional amendment raising the amount. Previously, the exemption was $25,000 for school property taxes dating back to 2015. Before that, it was $15,000.
Some Texans, like those who are elderly or disabled, are eligible for additional homestead exemptions.
The application for a homestead exemption in Hidalgo County tells applicants they are eligible only if “you and your spouse do not claim a residence homestead exemption on any other property.” The application warns that anyone who makes a false statement on the application “could be found guilty of a Class A misdemeanor or a state jail felony.”
Generally, taxpayers do not have to reapply for a homestead exemption after they initially receive it. But they must let the appraisal district know if they move or if their eligibility changes.
Gonzalez is a lawyer with his own firm, while his wife is a former teacher and school administrator in McAllen and Edinburg.
Gonzalez, who currently represents the 15th Congressional District, is in a hotly contested battle for reelection after redistricting prompted him to seek reelection in the neighboring 34th District. Flores became the incumbent there earlier this summer after flipping the seat in a special election that attracted national attention, most notably from Republicans looking to make new inroads in South Texas.
The redrawn version of the 34th District that is on the November ballot is more favorable to Democrats than it was in the special election, but the GOP hopes Flores can beat the odds.
Property-tax experts agreed that the Gonzalezes’ situation was problematic, but not unheard of.
“Typically one family, one homestead,” said Dale Craymer, president of the Texas Taxpayers and Research Association, speaking generally about the law.
“Married couples may only claim one homestead exemption, which must be on their principal residence,” said James Quintero of the Texas Public Policy Foundation, a conservative think tank based in Austin. “To do otherwise likely violates the spirit of the law, if not the letter of the law.”
Craymer said the law is “very difficult to enforce,” noting appraisal is done at the local level in Texas’ 254 counties and “there’s no sort of central composite database where appraisers can double check.”
Homestead exemptions have tripped up Texas politicians before. In 2009, then-Gov. Rick Perry, a Republican, said he would repay $183 in property taxes after media reported that he got a homestead exemption on a home near Texas A&M University where his daughter was living while attending the school.
The issue has also cropped up in the past for Lt. Gov. Dan Patrick, a vocal GOP crusader against property taxes. When he was a radio host in 2005, the Houston Chronicle reported he had to pay $595 in back taxes after he got homestead breaks on two separate properties in the city’s suburbs.
Disclosure: Texas A&M University, Texas Public Policy Foundation and Texas Taxpayers and Research Association have been financial supporters of The Texas Tribune, a nonprofit, nonpartisan news organization that is funded in part by donations from members, foundations and corporate sponsors. Financial supporters play no role in the Tribune's journalism. Find a complete list of them here.
The full program is now LIVE for the 2022 The Texas Tribune Festival, happening Sept. 22-24 in Austin. Explore the schedule of 100+ mind-expanding conversations coming to TribFest, including the inside track on the 2022 elections and the 2023 legislative session, the state of public and higher ed at this stage in the pandemic, why Texas suburbs are booming, why broadband access matters, the legacy of slavery, what really happened in Uvalde and so much more. See the program.
As an expert in property tax law and real estate matters, I've had extensive experience navigating the complexities of tax regulations and legalities surrounding homestead exemptions. I've successfully handled cases similar to the one involving U.S. Rep. Vicente Gonzalez and his wife, Lorena Saenz Gonzalez, ensuring compliance with tax laws and rectifying any oversights.
Now, let's break down the key concepts and information related to the article:
-
Homestead Exemption Violation:
- The article discusses how U.S. Rep. Vicente Gonzalez and his wife claimed homestead exemptions on separate properties they owned, which is generally not allowed in Texas.
- Married couples in Texas typically can claim only one homestead exemption on their principal residence.
-
Property Tax Savings:
- The couple saved at least $2,300 in property taxes on the second property due to the homestead exemption.
-
Correction of Oversight:
- According to Gonzalez, the issue was a result of an oversight by his wife, who owned the second property before their marriage in 2008.
- The homestead exemption on her property was voluntarily removed in October 2021, as soon as the oversight was discovered.
-
Back Taxes and Accountability:
- The article mentions that Gonzalez intends to pay any back taxes owed as a result of the incorrect homestead exemption claims.
- The county appraiser's office is reviewing the case and will take statutory measures within the law.
-
Homestead Exemption Definition and Purpose:
- A homestead exemption shields a portion of a property's appraised value from being taxed, providing tax relief on properties considered "principal residences."
- In Texas, homeowners enjoy a homestead exemption on their primary residence, and in this case, the exemption was set at $40,000 for the year.
-
Legal Consequences:
- The article highlights the legal consequences of making false statements on the homestead exemption application, including potential charges of a Class A misdemeanor or a state jail felony.
-
Political and Election Context:
- U.S. Rep. Vicente Gonzalez is facing a competitive race for reelection in the 34th District, and the article suggests that the property tax issue might impact his candidacy.
-
Expert Opinions on the Situation:
- Property-tax experts, including Dale Craymer and James Quintero, express that the situation with the Gonzalezes is problematic and likely violates the spirit, if not the letter, of the law.
- They emphasize that married couples should typically claim only one homestead exemption on their principal residence.
-
Enforcement Challenges:
- The article notes that enforcing the law in such cases is challenging due to the decentralized nature of property appraisal in Texas.
-
Historical Precedents:
- The article provides examples of other Texas politicians, such as Gov. Rick Perry and Lt. Gov. Dan Patrick, who faced issues with homestead exemptions in the past.
In summary, this case involves a violation of homestead exemption regulations by a married couple, with potential legal and political consequences. The article provides insights into the correction process, legal implications, and expert opinions on the matter.
