San Antonio city officials said preliminary data show the city could provide property tax relief in the form of a small property tax rate and the expansion of existing tax exemptions.

City staff briefed the council on May 11 on the city’s current and short-term finances, including a five-year financial forecast and a fiscal year 2022-23 trial budget.

Mayor Ron Nirenberg and several council members recently said they would support seeing some property tax relief as part of the 2022-23 budget process, especially given skyrocketing home appraisals over the past year.

City staff is proposing increasing the homestead exemption from the current .01%, or $5,000 minimum, to 10% for all homesteads, regardless of value.

The council is also mulling a proposal to expand the city’s over-age-65 tax exemption from $65,000 to $85,000. Additionally, the city proposes increasing its disabled persons’ exemption from $12,500 to $85,000.

According to the council briefing, a 10% homestead exemption could result in a $10 reduction in the annual tax bill on a home valued at $230,000.

A $20,000 increase in the over-65 exemption could result in a $110 reduction in the annual tax bill on a home valued at $230,000, city staff said.

Additionally, the city is proposing a drop in the city’s total property tax rate from $0.55827 to $0.54504, city staff said. The city has decreased its tax rate seven times in the past 29 years.

City staff also said, considering projected continued increases in assessed property values, the proposed forms of tax relief would not negatively affect San Antonio’s property tax revenue stream.

According to city staff, if the council were to approve all property tax relief recommendations for FY 2022-23, San Antonio taxpayers could save a total of $93.8 million. The council would have to approve tax changes by July 1 for the new tax relief to be effective in FY 2022-23, which starts Oct. 1.

District 10 Council Member Clayton Perry, who has been pushing tax relief, expressed optimism over the city’s proposals.

"I consider today’s recommendations a home run for District 10 and San Antonio as a whole. It’s incredible to see additional property tax relief, police officers and public safety services as well as infrastructure improvements be recognized as a priority and necessity for San Antonio as we continue to grow,” Perry said in a statement. “Property tax relief, public safety and infrastructure have long been the priorities of District 10 neighbors, and our office is looking forward to sharing this win with them.”