Dallas City Council unanimously approved an increase in the homestead property tax exemption for these homeowners on June 8. The new exemption is up to $115,500 from the previous level of $107,000 and will apply to the 2022-23 tax year beginning Oct. 1.
Annual revenue foregone was estimated at more than $4.89 million, according to city documents.
District 12 Council Member Cara Mendelsohn, who serves as the chair of the city’s Government Performance and Financial Management Committee, said many seniors and residents with disabilities in Dallas are on a fixed income. That can make property value increases difficult to manage, she added.
Rising cost of living was also considered in the proposition to raise the exemption as the committee looks to make Dallas more competitive with surrounding cities, according to Mendelsohn.
The property tax rate in Dallas is $0.773300 per $100 valuation, according to the city's budget for fiscal year 2021-22.
“This exemption increase, which will mean a reduction in their property tax, can mean the difference between being able to afford groceries or prescription medication,” Mendelsohn said.
