The Lone Star College System board of trustees voted June 1 to approve a 7% increase in the homestead exemption. According to a news release June 1, the move will result in homeowners paying less in taxes in the 2023 tax year.

Two-minute impact

According to the news release, the new homestead exemption will be $5,000, or 8% of the assessed value of a home, whichever is greater. Homestead exemptions remove part of a home's value from taxation, lowering the taxes owed.

• The previous LSC tax exemption rate for an eligible homeowner was $5,000 or 1% of market value.
• An average tax exemption in 2022 was $3,000 on a home valued at $300,000.
• Under the new LSC homestead exemption, that homeowner would see a tax exemption of $24,000 for a $300,000 home.
• Trustees also voted to continue an additional exemption of $75,000 for those on disability or over age 65.
• The 2023 proposed tax rate will take into consideration the impact of both exemptions.
• The new exemptions will automatically renew for successive one-year terms until a change is needed.

Quote of note: “Lone Star College is committed to being good stewards to the community it serves,” LSC Board Secretary Mike Sullivan said. “Lone Star College continues to remain financially sound and will be able to continue to pay down its debt, saving even more money for the tax payers.”

One more thing: The LSCS board of trustees heard a presentation during a budget workshop on the fiscal year 2023-24 proposed budget and tax rate ahead of the regular board meeting June 1. To read more about the topic, check Community Impact.