The discussion of homestead exemption was brought forth by Council Member Yvonne Flores-Cale, stating that cities in Texas can implement an exemption of up to 20% of the value of a home or as low as $5,000.
The only exemption currently in place is $30,000 for residents age 65 and up.
Council Member Dex Ellison mentioned that during the previous budget cycle, the dais received property tax exemption options from the finance department, which stated how much tax revenue the city would not receive per $5,000 exemption.
"A $5,000 exemption in October of last year equaled about $250,000 of exempted value from the city," City Manager Scott Sellars said.
However, a new exemption must now be levied against the upcoming road bond that could be around $100 million; though the number has not yet been confirmed, both Sellars and Mayor Travis Mitchell have mentioned $100 million during council meetings.
"We're going to have to figure out how best to consider exemptions [while] at the same time, propose a very large number for road bond improvements without, hopefully, raising the tax rate too much. We're at an offset here; we reduce on one side of the ledger, but yet we ask on another," Sellars said.
The tax rate for the city of Kyle has steadily declined, Sellars added, though the taxable value has increased.
Mitchell added that this is the appropriate time to add homestead exemption discussions to the budgeting workshops as staff and council try to determine what the tax rate will be and how much debt, in regard to the road bond, the city can fund.
The next budget work session will be July 7 at 5:30 p.m. at City Hall, located at 100 W. Center St., Kyle.
