The breakdown
City staff recommended keeping the rate at 15% because projections show Frisco’s taxable base will dip slightly in fiscal year 2024-25 due to revalues and adjustments, according to a June 25 council work session presentation.
The projections were based on the previous year’s data as the city will not receive new information from the county until late July, Chief Financial Officer Derrick Cotten said.
Commercial, retail and multifamily properties have been struggling under this economy, Cotten said. Those are problems the entire country is facing, not just Frisco, council member Bill Woodard said.
The city has until July 1 to make any changes to the homestead exemption, according to a meeting presentation. No action was taken during the meeting.
“Especially with the voter approval rate and the way that inflation has been recently, it's already been so tight for us,” council member Laura Rummel said. “I just don't think [raising the exemption rate] is realistic this year.”
Something to note
Frisco has other tax exemptions for qualifying residents to take advantage of:
- An $80,000 exemption for homeowners with disabilities or who are age 65 and older
- A tax freeze for homesteads owned by people with disabilities, and residents age 65 and older
The tax freeze ensures the homeowner’s taxes will not increase as long as they own and live in the residence, and do not make any improvements, according to the city’s website.
What comes next?
FY 2024-25 officially begins on Oct. 1. Here is a look at what the city will be doing before then:
- July 25: city officials receive certified tax roll
- Aug. 6: budget and audit committee meets
- Aug. 12: council members discuss the budget at a work session
- Aug. 20: council holds the first public hearing on the budget
- Sept. 3: council holds the second public hearing on the budget
- Sept. 17: council holds a public hearing on the tax rate and adopts the city’s budget, tax rate and fee ordinances
