HomeMy WebLinkAboutIR 24-1908INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 24-1908
To the Mayor and Members of the City Council
s
* rn SUBJECT: PROPERTY TAX RELIEF STRATEGIES
1875
October 8, 2024
Page 1 of 2
Property taxes are the City's most important funding source and a major cost for all property owners in the
City of Fort Worth. There is interest both by the City's governing body and by its residents in preventing
steep cost increases to homeowners while keeping funding for core City services steady. In this interest, the
question has been raised of how tax increases could be limited for residents without fully foregoing property
tax revenue on any given property. The purpose of this informal report is to provide the essential context for
property tax exemptions the City offers in accordance with State law.
Property Tax Exemptions
Under the Texas property tax system, taxing entities adopt rates which are charged uniformly to all
property owners. Though other states' property tax laws differ, all have some combination of safeguards,
incentives, and tax breaks to seek an equitable distribution of payments. The State of Texas allows
municipalities several optional means of granting property tax relief to homeowners:
- local homestead exemption: a general homestead exemption of up to 20 percent of appraised
value (minimum of $5,000)
- 65 and older or disabled person's exemptions, or both, in any amount of $3,000 or more
- tax ceilings, which apply only to homes that qualify for a 65 or older or disabled person's
exemption; the limitation is mandatory for school districts and optional for cities, counties, and
junior college districts
- childcare exemption: an exemption on at least 50% and up to 100% of the appraised value of
qualifying child care facilities
Fort Worth offers all of the above exemptions. In the cases of the local homestead option and childcare
exemption, Fort Worth already offers the maximum 20% and 100% exemptions allowed, respectively. Fort
Worth's exemption for disabled residents and those aged 65 and over is $80,000, up from $40,000 just
two years ago. On top of these exemptions, Fort Worth's Historic Site Tax Exemption allows owners of
locally -designated properties to freeze the City's portion of their property taxes at the pre -improvement
amount for a period of time if they complete qualifying rehabilitation on the property.
Continuing to increase the over 65 and disabled person exemption amount is one way in which Fort Worth
could offer additional tax relief. Increasing the exemption — depending on the magnitude of the increase —
will assist many of Fort Worth's elderly and disabled residents, but some will not see any additional tax
relief because their frozen tax bills are low enough that the extra reduction in taxable value will not bring
their bills below the ceiling amounts.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 24-1908
To the Mayor and Members of the City Council
s
* rn SUBJECT: PROPERTY TAX RELIEF STRATEGIES
1875
October 8, 2024
Page 2 of 2
Some cities in Texas offer higher over 65 and disabled person exemptions than Fort Worth:
City
Houston
San Antonio
Dallas
Austin
Fort Worth
El Paso
Arlington
Corpus Christi
Plano
Lubbock
Local Exemptions
Over Age 65
$260,000
$85,000
$153,400
$154,000
$ 80, 000
$42, 500
$ 60, 000
$62,500
$40, 000
$16, 700
Disabled Person
$260,000
$85,000
$153,400
$154,000
$ 80, 000
$42, 500
$ 60, 000
$62,500
$40, 000
$10, 000
Though Fort Worth is taking advantages of all available exemptions, direct relief to property owners is just
one method of reducing Citywide tax burdens. The tax bills which Fort Worth residents and business
partners pay depend on countless interconnected policy decisions, programs, and macroeconomic factors.
If you have questions concerning this information, please contact Christianne Simmons, Chief
Transformation Officer of the FWLab, at 817-392-6222.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER
FORT WORTH, TEXAS