Some Flower Mound residents will see a rise in their homestead exemptions after council approved raising the amount for two different exemptions at the June 19 meeting.

Council increased the exempted amount of the appraised value of residential homesteads of disabled individuals to $150,000 and increased the exempted amount for individuals age 65 and older to $150,000. Both exemptions used to be $100,000.

The details

Any changes to an existing exemption must be approved by June 30 each tax year to go into effect the next fiscal year, a council agenda memo stated. The ordinance will become effective beginning with fiscal year 2023-24.

On the over-65 homestead exemption, the town has the authority to designate an amount to exempt from the assessed value of the residence homestead for persons married and unmarried and 65 years of age or older, on Jan. 1 of each year, the memo stated.

This item increases the over-65 homestead tax exemption to $150,000 of the appraised value of residential homesteads for married or unmarried persons age 65 and older on or before Jan. 1 of the tax year in which such exemption will be applied. This exemption includes those people living alone from property taxes levied and hereafter to be levied by council with the amount exempted being not less than $3,000.

The background

Council was interested in increasing the homestead exemption and the over-65 and disabled exemption amount in addition to decreasing the tax rate, said J.P. Walton, Flower Mound strategic services manager. He later told council the $100,000 over-65/disabled exemption implemented in 2006 is worth around $150,000 now.

Council also approved an ordinance increasing the residential homestead property tax exemption to 12.5%. This item increases the homestead tax exemption, meaning the owner of a residential homestead is entitled to an exemption from Flower Mound property taxation in an amount equal to the greater of $5,000 or 12.5%.

The ordinance will become effective beginning with FY 2023-24.

In 2018, Flower Mound Town Council approved a homestead tax exemption in an amount equal to the greater of $5,000 or 2.5%, the agenda memo stated. In 2021, council approved an increase to the homestead tax exemption in an amount equal to the greater of $5,000 or 5%. In 2022, council approved an increase in an amount equal to the greater of $5,000 or 10%.