Frisco City Council approved the city's first-ever residential homestead exemption during Tuesday's meeting. The 7.5 percent exemption will save the average homeowner about $143 on a tax bill.

The city's exemption is separate from the school district's homestead exemption, according to the city. A homestead exemption removes part of a home's value from taxation, effectively lowering a homeowner's taxes.

According to the city, the average home appraisal is increasing by 9 percent. With an average Frisco home appraised at $391,923, the taxes due would be about $1,922. With the exemption, the average tax bill would be lowered to $1,778.

"We've been a victim of our success," Frisco Mayor Jeff Cheney said. "It's great when your property is going up in value when you're selling your home. It's not great when you're writing that [property tax] check. Homeowners from every single price point have been telling us that they're being taxed out of their homes because it's been going up so much. This is a great first step that this council is taking."

This exemption is estimated to reduce the projected city revenue by about $3.2 million dollars, according to the city.