After an unprecedented jump in property values, the Georgetown City Council approved the first reading regarding a 2% increase to its citywide homestead tax exemption at its regular meeting June 14. A second reading will be done June 28.

The council has to adopt the ordinance before July 1 for the increase to take place in the next fiscal year, according to the city.

According to Georgetown's Senior Finance Analyst Erika Young, Georgetown’s housing market is valued at $12.5 billion, a 56.8% increase from 2017's value of $5.4 billion.

Young also said over 90% of homesteaded properties hit the state’s 10% maximum increase or “cap” on assessed value this year.

"The current homestead exemption, [3%], totals to be $208 million,” Young said during the workshop prior to the meeting. “Increasing the exemption to 5% will result in $346 million.”

Young said, to qualify for the homestead exemption, the homeowner must use the documented property as principal residence Jan. 1 of that year.

In June 2021, Georgetown voted to increase the homestead exemption from $5,000 or 1% of the home’s value to $5,000 or 3% of the home’s value.

Read Community Impact Newspaper's report from 2021 here.