Item 6GCITY OF
SOUTH LAKE
MEMORANDUM
September 11, 2012
To: Shana Yelverton, City Manager
From: Sharen Jackson, Director of Finance
Subject: Ordinance No. 1048, 2n Reading, Approve an ordinance of the City of
Southlake, Texas, providing for a residential homestead property tax
exemption.
Action
Requested: Approval of Ordinance No. 1048, on 2n reading, providing for a
residential homestead property tax exemption.
Background
Information: The FY 2013 budget proposes to implement a new homestead
exemption of $15,000 to compliment the current over -65
exemption ($75,000) and disabled exemption ($75,000), as well
as the over -65 tax freeze.
Approval of the ordinance would provide a homestead exemption
of $15,000 to Southlake residents for tax year 2012.
During the 1s' reading of the ordinance, a question was raised
regarding homestead exemptions for veterans. There is not a local
option to provide a homestead exemption for veterans however
the state offers a homestead exemption for disabled veterans.
Financial
Considerations: Approval of homestead exemption reduces property tax revenue
by $560,000 (reduction is reflected in the proposed budget).
Strategic Link: F1 Adhere to financial management principles and budget
Citizen Input/
Board Review: Public hearing is scheduled for September 18
Legal Review: City attorneys prepared Ordinance 1048
Alternatives: Deny or modify
Supporting
Documents: Ordinance No. 1048
Staff
Recommendation: Approval of Ordinance No. 1048, on 2n reading, providing for a
residential homestead property tax exemption.
ORDINANCE NO. 1048
AN ORDINANCE OF THE CITY OF SOUTHLAKE, TEXAS, PROVIDING FOR A
RESIDENTIAL HOMESTEAD PROPERTY TAX EXEMPTION; PROVIDING
THAT THIS ORDINANCE SHALL BE CUMULATIVE OF ALL ORDINANCES;
PROVIDING A SEVERABILITY CLAUSE; PROVIDING A PUBLICATION
CLAUSE; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Southlake, Texas is a home rule city acting under its charter
adopted by the electorate pursuant to Article XI, Section 5 of the Texas Constitution and Chapter
9 of the Local Government Code; and
WHEREAS, Section 11.13(n) of the Texas Property Tax Code provides that the City
Council may adopt an exemption from taxation of a portion of the appraised value of the
residence homestead; and
WHEREAS, the City Council desires to adopt a residential homestead exemption
pursuant to Section 11.13(n) of the Texas Property Tax Code for the 2012 tax year.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
SOUTHLAKE, TEXAS:
SECTION 1.
In addition to any other exemptions provided by state law or city ordinance, the owner of
a residence homestead who makes application therefore, shall be entitled to an exemption for the
2012 tax year from City ad valorem taxation of an amount equal to the lesser of fifteen thousand
dollars ($15,000) or twenty percent (20 %) of the appraised value.
SECTION 2.
This ordinance shall be cumulative of all provisions of ordinances and of the Code of
Ordinances of the City of Southlake, Texas, as amended, except where the provisions of this
ordinance are in direct conflict with the provisions of such ordinances and such Code, in which
event the conflicting provisions of such ordinances and such Code are hereby repealed.
SECTION 3.
It is hereby declared to be the intention of the City Council that the phrases, clauses,
sentences, paragraphs, and sections of this ordinance are severable, and if any phrase, clause,
sentence, paragraph or section of this ordinance shall be declared unconstitutional by the valid
judgment or decree of any court of competent jurisdiction, such unconstitutionality shall not affect
any of the remaining phrases, clauses, sentences, paragraphs and sections of this ordinance,
since the same would have been enacted by the City Council without the incorporation in this
ordinance of any such unconstitutional phrase, clause, sentence, paragraph or section.
SECTION 4.
The City Secretary of the City of Southlake is hereby authorized to publish this ordinance
in book or pamphlet form for general distribution among the public, and the operative provisions
of this ordinance as so published shall be admissible in evidence in all courts without further proof
than the production thereof.
SECTION 5.
This Ordinance shall be in full force and effect form and after its passage and publication
as provided by law, and it is so ordained.
PASSED AND APPROVED ON FIRST READING ON THIS DAY OF
2012.
MAYOR
ATTEST:
CITY SECRETARY
PASSED AND APPROVED ON SECOND READING ON THIS DAY OF
2012.
MAYOR
ATTEST:
CITY SECRETARY
EFFECTIVE:
APPROVED AS TO FORM AND
LEGALITY:
CITY ATTORNEY