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File #: 19-9054    Version: 1 Name: Homestead Exemption Amendment 2019 7.5%
Type: Ordinance Status: Adopted
File created: 6/7/2019 In control: Finance
On agenda: 6/18/2019 Final action: 6/18/2019
Title: Ordinance Amending the Code of Ordinances, Chapter 24-1.1 "Taxation," to increase the Homestead Exemption percentage and change the minimum amount to the greater of 7.5% or $5,000
Attachments: 1. Homestead Ordinance 2019
Title
Ordinance Amending the Code of Ordinances, Chapter 24-1.1 "Taxation," to increase the Homestead Exemption percentage and change the minimum amount to the greater of 7.5% or $5,000

From
Brady Olsen, Treasury and Debt Manager

Presenter
Brady Olsen, Treasury and Debt Manager

Recommended Action
Approve

Analysis
Ordinance 7467 (Homestead Exemption) was passed on September 16, 2006 and amended by Ordinance 7694 on November 6, 2007 and again on May 16, 2017 to set the homestead exemption amount to the greater of 1% or $10,000. Since then, an attorney general's ruling found the minimum exemption could not exceed $5,000. This ordinance is to increase the percentage from 1% to 7.5%, providing property tax relief for the majority of citizens with a homestead exemption.

Financial Consideration
It is estimated that property tax revenues will be reduced by an estimated $1.2 million if the Homestead Exemption is increased to the greater of 7.5% or $5,000.

Body
AN ORDINANCE OF THE CITY OF GRAND PRAIRIE, TEXAS, AMENDING CHAPTER 24 "TAXATION", SECTION 24-1.1 "HOMESTEAD EXEMPTION" OF THE CODE OF ORDINANCES TO INCREASE THE HOMESTEAD EXEMPTION TO THE GREATER OF SEVEN AND ONE HALF (7.5) PERCENT OF THE APPRAISED VALUE OR FIVE THOUSAND DOLLARS ($5,000) OF ALL OWNER OCCUPIED RESIDENCES; CONTAINING A SAVINGS CLAUSE; REPEALING ALL ORDINANCES IN CONFLICT THEREWITH

WHEREAS, Ordinance 7694 was adopted on November 6, 2007 granting a Homestead Exemption for all persons owning the primary residence they are residing in.

WHEREAS, the amount of the Homestead Exemption adopted in 2007 was the greater of 1% of the appraised value or $5,000.00.

WHEREAS, the Homestead Exemption was amended on February 7, 2017 and again on May 16, 2017 increasing the Homestead Exemption to the greater of 1% of the appraised value of $10,000.

NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS:

SECTION 1. That Chapter 24, Section 24-1.1 of the Code of O...

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