File #: 22-0555    Name: Homestead Exemptions for Over 65 and Disabled
Type: Agenda Item Status: Agenda Ready
In control: City Council Work Session
On agenda: 6/21/2022 Final action:
Title: Presentation on the Homestead Exemption for Residents Over Age 65 and the Disabled
Attachments: 1. Ordinance, 2. Presentation
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Title

Presentation on 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 21, 2022

 

DEPARTMENT:                      Budget

 

CONTACT:                                            Mark Holloway, Chief Financial Officer

 

 

RECOMMENDED CITY COUNCIL ACTION:

  • Approve the ordinance.
  •  
  • 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 $25 less in taxes at current tax rate.
  • For every $5,000 increase in exemption, non-eligible homeowners will pay $2.80 more in taxes at current tax rate.
  • At current exemption level of $65,000, non-eligible homeowners pay $36 more in taxes per year at current tax rate.
  •  
  • BACKGROUND INFORMATION:
  • The homestead exemption for residents over age 65 and the disabled was increased in 2018 to $65,000 (current exemption), 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 $100,000.
  • 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 2022 taxes.
  •  
  • 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 $231,000.