Frisco Raises Homestead Exemption To Relieve Rising Property Taxes
FRISCO — More property tax relief is on the way for Frisco homeowners.
In a special mdata:text/mce-internal,content,In%20eeting Friday, the City Council increased the homestead exemption from 7.5 percent to 10 percent. The change will provide an additional $47 in tax savings for a home valued at $417,000, which is the city’s average based on preliminary appraisals.
The tool allows the city to provide relief to homeowners without changing its property tax rate. The exemption applies only to homeowners living in their primary residence. Commercial and rental properties do not qualify.
“We hear from our residents, of course, that taxes are rising, and it’s becoming a burden on them,” Frisco Mayor Jeff Cheney said. “It’s just a way for us to lower the tax burden on our residents. It provides them immediate tax relief.”
The new homestead exemption is estimated to decrease the city’s revenues by about $6.8 million. A final amount won’t be available until property appraisal numbers are certified.
Frisco first approved a homestead exemption last summer for fiscal 2018. Officials plan a review each year to determine whether the exemption should change.
According to the city, 36,513 of its 50,356 single-family homes are homestead residences that would qualify for the exemption.
Rising property taxes have become a significant issue in Texas. State legislators wrangled with proposals in 2017 but were unable to come up with a solution.
In January, Gov. Greg Abbott rolled out a proposal that would cap growth in property values at 2.5 percent each year. Specifics of his proposal will be taken up at the next legislative session.
Cheney said it’s too early to say what Frisco might do if the governor’s plan becomes law next year. He’s hoping instead that lawmakers decide to reward cities like Frisco that have a low tax rate for operations, an efficient government and tools like the homestead exemption.
The savings to Frisco’s taxpayers through the homestead exemption were greater than what lawmakers were considering with the property tax revenue cap.
“We want the state of Texas looking at Frisco and pointing at Frisco as the model for the state,” Cheney said.
Published on 2018-07-11 12:39:27
