What happened
League City City Council voted unanimously at the May 27 meeting to increase the property tax exemption for senior citizens and disabled residents from $100,000 to $200,000, according to the agenda.
The exemption, which takes effect in the fiscal year 2025-26, applies to residents 65 and older and those who are disabled under federal disability insurance standards, city documents show.
The backstory
Initially, City Council was slated to vote to increase the homestead exemption from $100,000 to $125,000, but council member Chad Tressler asked City Council to amend the ordinance to increase the exemption to $200,000.
Tressler cited Senate Bill 3 in the ongoing Texas legislative session as the reason for his request, which seeks to increase the state homestead exemption for seniors and disabled Texans to $200,000.
Increasing the exemption would displace around $800,000 in tax revenue, city Manager John Baumgartner said.
Historically, League City has aimed to use the no-new-revenue tax rate and find ways to displace the tax burden to other taxpayers, including residents and businesses.
Why it matters
Mayor Nick Long said that increasing the homestead exemption would overall benefit homeowners because it shifts a portion of the tax burden to commercial taxpayers.
“It still is a net decrease overall to the taxpaying citizens as a whole because of that additional shift onto the commercial, industrial tax base,” Long said.
City Council member Andy Mann said he would vote for the increase but was wary of shifting the tax burden. He said he would look for expenses to cut in the FY 2025-26 budget to offset the exemption.
“Everyone loves to virtue signal on stuff like this, but we’re coming right around the corner to the budget and we can actually find corresponding cuts,” Mann said. “I’ll vote for it, but I’ll be looking for somewhere to sacrifice,” Mann said.
