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INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7164
To the Mayor and Members of the City Council
April 7, 1987
Subject:
RESIDENCE HOMESTEAD TAX EXEMPTION
Section 1*1.13(n) of the Texas Property Tax Code provides that in addition
to any other exemptions provided by the Tax Code an individual is entitled
to an exemption from taxation by the City of a percentage of the appraised
value of that taxpayer's residence if the exemption is adopted by the City
Council before May 1.
The Tax Code provided for a maximum residence homestead exemption of 40
percent for the tax years 1982 through 1984. For the tax years of 1985,
1986 and 1987 the limit is 30 percent. In 1988 the limit will drop to 20
percent and remain there for each subsequent year. The Fort Worth City
Council adopted a 15 percent exemption in 1984 and 1985 and a 20 percent
exemption for the 1986 tax year. The initial certified appraised values
for 1986 refected 32,503 homeowners with an exempt property value of
$778,984,903 out of a total appraised value of $2,396,140,362 receiving the
exemption. At the 1986 tax rate of $ .7390/100 the potential tax revenue
lost to the City for these accounts was $5,714,211.
A survey of Metroplex cities was made to determine the level of exemption,
if any, provided in each city. The results are as follows:
owl CITY EXEMPTION RATE
Dallas 30 %
Arlington 30
Irving 22
FORT WORTH 20
Plano 20
Hurst 20
Carrollton 20
North Richland Hills 10
Richardson 0
Grand Prairie 0
The adoption of a residence homestead tax exemption and the amount of that
exemption are City Council policy matters. If the Council wishes to
establish an exemption for the 1987 tax year, the staff will prepare the
necessary ordinance for an exemption at the level the Council believes to
be appropriate and place it on the City Council agenda for April 21, 1987.
Harman
City M a
ug
ols H
City Managg
er
-ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS