City staff briefed the Richardson City Council on a plan to raise the exemption from $130,000 to $145,000 for property taxes due in 2025 during the Jan. 22 meeting. The recommendation was made to continue meeting a staff goal of exempting at least 30% of the appraised value for a senior's or individual with disabilities’ home, Assistant Director of Finance Tom Gastorf said.
The overview
The exemption is applied to the overall value of an eligible property, Gastorf said, with the remaining value functioning as a home's taxable value. Individuals wishing to take advantage of the discount should contact either the Dallas Central Appraisal District or the Collin Central Appraisal District, based on their county of residence.
City staff project a 5% annual increase in the value of a home within the city along with a 1% increase in the number of individuals eligible for the exemption, Gastorf said. Based on projections shared with council, a $145,000 exemption is expected to equal about 31.6% of the average market value of a senior's home, or around $813 in savings for a senior on their city property tax bill.
Gastorf said there are slightly more than 8,800 residential taxpayer accounts that qualify for the senior or individuals with a disability exemption. Surviving spouses of a senior or an individual with disabilities can continue to receive the exemption as long as they are age 55 or older.
What’s next?
Council is expected to consider a resolution to raise the exemption to $145,000 for the 2024-25 fiscal year during the Feb. 12 meeting.
Gastorf said any changes to the exemption must be adopted prior to July 1.
