| | | | | | | | City of Georgetown, Texas
City Council Workshop
June 14, 2022 |
| | | | | | | | SUBJECT:
Presentation and discussion regarding the financial impact to the City and the homeowners adopting a change in homestead exemption -- Erika Young, Senior Budget Analyst |
| | | | | | | | ITEM SUMMARY:
Over the past five years the market value of homes in Georgetown has increased, from $5.4 billion in residential market value in 2017, to $12.5 billion in 2022. The assessed value of homes has increased as a result. The State imposes a 10% cap on the yearly increase in assessed value of homesteads, and the City currently offers the greater of a $5,000 or 3% exemption of assessed value of homesteads. For tax year 2022 (FY2023), more than 90% of homes in Georgetown were at or above the 10% state cap.
The City Council desires to discuss and possibly take action to increase the value of the homestead exemption. For a change to be effective in the coming tax year 2022 (FY2023), it must be adopted before July 1, per Texas Tax Code 11.13.
This item will discuss the financial impact to the City and the homeowners of adopting a change in exemption. A corresponding action item is on the legislative agenda.
SPECIAL CONSIDERATIONS:
This item must be adopted on two readings according to the City Charter, and the second reading must occur on or before June 30 for the change to take effect in the next year.
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| | | | | | | | FINANCIAL IMPACT:
Increasing the percentage from 3% to 5% is anticipated to increase the Citywide homestead exemption amount from $208 million to $346 million. The change is anticipated to reduce the average homestead tax bill by $30 at the current tax rate. |
| | | | | | | | SUBMITTED BY:
Sharon Parker |
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