The Woodlands Township board of directors approved a resolution raising its property tax exemption for residents with disabilities or who are age 65 and older at its June 28 meeting. It also approved a 3% homestead exemption, a first for the township.
In a nutshell
The property tax exemption for homeowners who are age 65 and older or disabled will be increased to $50,000. Last year, The Woodlands Township raised the exemption for homeowners age 65 and older or disabled from $25,000 to $40,000, Community Impact previously reported.
The township did not previously have a homestead exemption applying to all residents. A homestead exemption lowers the amount paid on a property used as a primary residence. The 3% exemption means qualifying taxpayers will reduce the value on which they pay taxes.
President and CEO Monique Sharp said homestead properties comprise 56% of the properties in the township.
The specifics
- The property tax rate in The Woodlands Township for the 2023 fiscal year, which runs from January to December, was $0.185 per $100 valuation.
- The owner of a home valued at the township average, $500,000, pays $925, or 10% of their overall tax bill, to the township.
- The deadline to submit any change in the township’s existing property tax exemptions is June 30.
- Each 5% of exemption is a $1.4 million reduction in revenue to the township.
- A total of 56% of taxable properties in the township qualify for a homestead exemption.
- Another new revenue stream in the township starting Sept. 1 will be mixed beverage sales tax collections, made possible through legislation passed in this session.
“A lot of this gets down to what the board wants its tax philosophy to be in terms of providing tax relief. ... The past philosophy has been this community thrives when our business community thrives; that is why whenever we have been able to lower [taxes] ... it has been to all taxpayers,” Sharp said.
“I think we can keep our tax rate low like it is, and I think we can give a homestead exemption tax to our homeowners,” director Brad Bailey said.