File #: 25-2884    Name: Homestead Exemption Over Age 65 and Disabled
Type: Ordinance Status: Regular Agenda Item
In control: City Council Regular Meeting
On agenda: 6/17/2025 Final action:
Title: Consider/Discuss/Act on an Ordinance Increasing the Homestead Exemption for Residents Over Age 65 and the Disabled
Attachments: 1. Ordinance
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Title

Consider/Discuss/Act on an Ordinance Increasing the Homestead Exemption for Residents Over Age 65 and the Disabled

 

Summary

 

COUNCIL GOAL:   Financially Sound Government

(4A: Provide Funding and Organizational Framework to Ensure Continual Economic Improvements)

 

MEETING DATE:                     June 17, 2025

 

DEPARTMENT:                      Budget

 

CONTACT:                                            Mark Holloway, Chief Financial Officer

 

 

RECOMMENDED CITY COUNCIL ACTION:

  • Approve the ordinance.
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  • ITEM SUMMARY:
  • This agenda item discusses the impact of increasing the tax exemption for residents over age 65 and the disabled.
  • For every $5,000 increase in exemption, eligible homeowners will pay $21 less in taxes at current tax rate.
  • For every $5,000 increase in exemption, non-eligible homeowners will pay $3.26 more in taxes at current tax rate.
  • At current exemption level of $90,000, non-eligible homeowners pay $56 more in taxes per year at current tax rate.
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  • BACKGROUND INFORMATION:
  • The homestead exemption for residents over age 65 and the disabled was increased in 2024 to $90,000 (current exemption), 2023 to $85,000, in 2022 to $80,000, in 2018 to $65,000, and in 2017 to $60,000. Prior to that, the exemption for residents over 65 had been $50,000 since 2005, with the exemption for disabled residents added in 2006. Between 1999 and 2005, the exemption was $30,000. Before 1999, the exemption was $4,500 since 1979. 
  • When compared with other area cities, exemptions range from $30,000 to $153,400.
  • The county appraisal district must receive notice of adoption from the City before July 1 in order for the increase to be effective October 1 for 2025 taxes.
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  • FINANCIAL SUMMARY:                      
  • Based on the current tax rate and the current number of households claiming the over 65 and disabled exemption, the potential reduction in revenue for every $5,000 increase in exemption is approximately $238,000.