HomeMy WebLinkAboutIR 7132 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7132
"0 T I*"'g foRr To the Mayor and Members of the City Council June 24 , 1986
0
X Subject: RESIDENTIAL HOMESTEAD TAX EXEMPTION
For the tax years 1984 and 1985 the City Council adopted a 15%
residential homestead tax exemption. On June 17, 1986, M&C G-6699, which
recommended continuation of the 15% exemption for the 1986 tax year was
delayed for one week and the staff was asked to furnish additional
information to the Council.
A survey of other cities in the Metroplex was made to determine the
level of exemption, if any, provided in each city. The results of this
survey are as follows:
CITY EXEMPTION RATE
Dallas 30 Z
Arlington 30
Irving 22
Plano 20
Hurst 20
Carrollton 20
North Richland Hills 10
Richardson 0
Grand Prairie 0
The Texas Property Tax Code provided for a maximum 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 tax year. According
to the State Property Tax Board most cities adopting an exemption have
avoided exceeding the 20 percent level due to anticipated negative public
reaction of a future reduction.
If the City of Fort Worth were to adopt a 20% exemption for the 1986 tax
year, current revenue projections for the 1986-87 fiscal year would be
reduced by approximately $1,378,000. To replace this revenue an
additional one cent would need to be added to the current $ .7390 tax
rate. The schedule below compares, for various appraised values, the
impact of the $ .7390 tax rate and a 15 % exemption with the impact of a
$ . 7490 tax rate and a 20 % exemption on both exempt(those qualifying
for a residential tax exemption) taxpayers and non-exempt(those who would
not qualify for the exemption).
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7132-D.2
To the Mayor and Members of the City Council June 24, 1986
AO%
X Subject: RESIDENTIAL HOMESTEAD TAX EXEMPTION
Exempt Non-Exempt
Appraised
Value 15% 20% var. 15% 20% var.
$ 30,000 $ 185 $ 180 5 $ 222 $ 225 +$ 3
60,000 377 360 17 443 449 + 6
100,000 628 599 29 739 749 + 10
200,000 1,256 1,198 - 58 1,478 1,498 + 20
300,000 1,884 1,798 - 86 2,217 2,247 + 30
The adoption of a residential homestead tax exemption and the amount of that
exemption are City Council policy matters. After the Council establishes
the level of homestead exemption it believes is appropriate the staff will
proceed to develop the 1986-87 budget based on this Council guidance. It is
important that the Council act on M & C G6699 today so that budget
preparation can proceed without delay.
;
o]uglas HairlEan
City M 24
City Manager
-ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS