At the Oct. 15 council meeting, Flower Mound Town Council unanimously approved a 2.5 percent homestead exemption, which will affect Flower Mound homeowners’ 2019 tax bill.

For a resident with a home valued at $400,000, the average home price in Flower Mound, their town of Flower Mound annual tax bill will be $1,712.10 instead of $1,756.00. This is an annual savings of $43.90, or $3.66 monthly.

“I think it’s great we were able to provide some relief to our residents with the town’s first homestead exemption,” Flower Mound Mayor Steve Dixon said. “Even though our tax rate is the lowest it’s been in 30 years, our appraised values continue to increase and this will help counteract that. Anytime we can put any amount of money back in residents’ pockets is a good thing.”

Council initially began examining a possible homestead exemption in August, past the Denton County Appraisal District deadline for it to be able to affect the 2018 tax bill. Staff presented several options, including a smaller 2 percent homestead exemption.

“The 2.5 percent option is the best fit right now,” Dixon said. “I think it’s worthwhile to our homeowners without being detrimental to the town’s budget.”

The homestead exemption will impact the town’s budget for Fiscal Year 2019-2020 by approximately $825,000 (based on current year property values). Town staff will bring the matter forward to Council annually starting in spring 2020, so the Council may reexamine the issue.

The homestead exemption can be used in combination with Flower Mound’s other tax exemptions for certain residents. The town currently has a $100,000 exemption for any resident 65 or older, the highest among the town’s benchmark cities. In addition, there is up to 100 percent tax exemption for disabled veterans and their spouses as well as a 100 percent exemption for the spouses of first responders who were killed or fatally injured in the line of duty.