Item 7C
Ordinance No. 1121, 1st Reading, providing for a residential homestead property tax exemption
Item 7C
Staff is proposing an ongoing 12% homestead exemption. For an average priced home in Southlake, this equates to about a $66,200 exemption or a FIVE AND ONE-HALF cent tax rate reduction.
This
exemption will save the homeowner OF AN ANNUAL VALUED HOME $305 a year IN TAXES. The impact to the City’s budget is a revenue reduction of $2.8 MILLION for 12% but only an additional
$471,594 for the additional 2%, which is inclusive of both the general fund operation portion of the tax rate, as well as the debt service portion.
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4.5 cent tax reduction
Background
5.5 cent tax reduction
The homestead exemption will complement the current over-65 exemption ($75,000) and the disabled exemption ($75,000) as well as the over-65 tax freeze.
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Homestead Exemption
$66,200
(average priced home)
FY 2016 Budget
Staff is proposing an ongoing 12% homestead exemption. For an average priced home in Southlake, this equates to about a $66,200 exemption or a FIVE AND ONE-HALF cent tax rate reduction.
This
exemption will save the homeowner OF AN AVERAGE VALUED HOME $305 a year IN TAXES. The impact to the City’s budget is a revenue reduction of $2.8 MILLION for 12% but only an additional
$471,594 for the additional 2%, which is inclusive of both the general fund operation portion of the tax rate, as well as the debt service portion.
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Next Steps
July 25th
Certified Values
August 6th
2nd Reading, Public Hearing
August 15th
Budget filed
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Questions?
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