Following an unanimous San Antonio City Council vote June 16, community members will soon be able to take advantage of new forms of property tax relief, including the expansion of three exemptions for eligible residents, and a slight property tax rate decrease for all property owners.

City government had until July 1 to approve property tax-reduction measures that will become applicable beginning with 2022 valuations and be part of fiscal year 2022-23 budget planning.

The approved tax relief includes:

• an increase in the city’s homestead exemption from the current 0.01% or $5,000 minimum to 10% for all homesteads;
• an expansion of the current over-age 65 tax exemption from $65,000 to $85,000;
• an expansion of the disabled persons’ exemption from $12,500 to $85,000; and
• cutting the total property tax rate from $0.55827 to $0.54504.

City leaders agreed that skyrocketing property appraisals across Bexar County have exacerbated finances for thousands of residents already struggling with the economic after-effects of the COVID-19 pandemic as well as inflation and supply chain issues.

According to the Bexar Appraisal District, the value of the average single-family home in Bexar County has risen 28% over last year.

Local officials said about 18,500 local property owners have resolved the protests they logged with the Bexar Appraisal District over their 2022 valuations.

The city estimates about $5 billion in total local values will be lost after the appraisal district finishes processing the projected 170,200 total protests.

The city also estimates it will forego $93.8 million in property tax revenues in fiscal year 2022-23 with the exemptions and tax cut in place.

Local officials showed the average tax bill would go from $1,089 to $1,079 on a property with an assessed value of $220,000 and a taxable value of $198,000 after eligible exemptions and the tax cut are applied.

“The city’s portion of your tax bill is only 20%; however, we want to provide relief for our residents wherever possible. The city’s balanced approach to reducing property taxes will bring relief to those who need it most,” City Manager Erik Walsh said.

City leaders emphasized how the council’s action on June 16 ensures that all local property owners receive some kind of tax relief.

“Our vote to increase the homestead exemption signals to San Antonians that we hear them; we recognize the challenge rising prices are posing to our neighbors; and we are committed to providing property tax relief in this difficult economic climate,” District 8 City Council Member Manny Pelaez said.

District 10 Council Member Clayton Perry, who has pushed for tax relief for several years, expressed joy over the city’s decision to go forward with expanding exemptions and decreasing the tax rate.

Perry also said the June 16 council action was a starting point, and that the city should pursue further property tax relief. Additionally, he pledged to approach other local taxing entities with suggestions that they, too, consider tax relief.

Bexar County is implementing a 20% homestead exemption and a $30,000 exemption on taxes that the Bexar County Hospital District/University Health impose on homeowners ages 65 and older.

“With increasing property values, tax relief is now more important than ever to ensure our most vulnerable do not live with the fear of being priced out of their homes. I am extremely grateful and overjoyed with today’s unanimous support and know that we still have room to grow and expand the homestead exemption in the future,” Perry said.

District 9 Council Member John Courage echoed Perry’s sentiment that the city should provide more tax relief.

“I would like to see more [relief], and I think we’ll see more, but it has to be a slow, steady process,” Courage said.

Fellow city leaders such as District 2 Council Member Jalen McKee-Rodriguez applauded the newest form of tax relief, saying it can help, especially residents struggling to age in place in their older home.

“This vote today is a good start, but it is not enough to prevent the displacement of residents in the near east side caused by rising property taxes. We need to do more to protect the fabric of our neighborhoods and ensure older residents can age in place and families can keep their biggest opportunity to build generational wealth,” McKee-Rodriguez said.

District 5's Teri Castillo, who represents the west side, said property tax relief is long overdue.

“This will aid homeowners to save on their most important investment—their home. The pandemic has impacted our residents and their ability to stay housed, so it is great to see this City Council meet this moment with action,” Castillo said.

Homeowners eligible for a tax exemption must file for it by going to the BAD website, visiting the appraisal district office at 411 N. Frio St. or calling 210-224-2432 for more information.