Georgetown officials have adopted a new increase to the city's homestead exception.
The homestead exception adopted during a July 13 City Council meeting will increase from $5,000 or 3% of market value, whichever is greater to $10,000 or 2%.
City Council had approved a homestead exemption of $5,000 or 2%, but learned on June 30 the Williamson Central Appraisal District could not accept the exemption due to an opinion from the attorney general concluding home rule municipalities lack the authority to increase the $5,000 floor for homestead exemptions, and must increase exemptions by percent only, Georgetown Finance Director Leigh Wallace said.
Essentially, the city ended up adopting an increase from 1% to 2%, and Wallace said the increase did not provide property tax relief to as may homeowners as officials had initially expected.
The new homestead exemption is excepted to result in a $370,000 decrease in property tax revenue for the city, Wallace said, and added homeowners should still see an annual tax bill that is $20 lower on average.
June 30 9:29 a.m.
Georgetown City Council unanimously approved June 29 to increase the city's homestead exemption.
The homestead exception will increase from $5,000 or 1% of market value, whichever is greater, to $10,000 or 2%.
The change in the homestead exemption is expected to the result in a $389,000 decrease in property tax revenue for the city, Georgetown Finance Director Leigh Wallace said.
With the change, homeowners should see a $20 lower tax bill annually, she added. The new homestead exemption will be effective for the 2021 tax year.