WACO, Texas (KXXV) β The increased Texas homestead exemption from $100,000 to $140,000 will provide Central Texas homeowners with approximately $400 in annual property tax savings, offering financial relief for families struggling with rising expenses.
- Tax Savings: Texas homeowners could save approximately $400 annually with the increased homestead exemption from $100,000 to $140,000
- Financial Relief: New homeowners and families facing rising expenses will benefit from keeping more money for groceries, college funds, and investments
- School District Impact: Waco ISD loses over $31 million in property tax revenue, but state funding is mandated to offset these losses.
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BROADCAST TRANSCRIPT:
Property tax relief is coming to homeowners across Texas, and Central Texas families could see hundreds of dollars back in their wallets.
The Texas homestead exemption increased from $100,000 to $140,000 this year, providing financial relief for homeowners like Dalton Ross, a new father and homeowner who has watched his expenses pile up.
"Every year my property taxes jump, and my income doesn't. And that's a problem," Ross said.
The increased exemption could save Waco ISD area homeowners approximately $400, according to Cory Duncan, Broker and owner of Haus Realty.
"If we drop that taxable value, 40,000 or an additional 40,000, that should result in about a $400 discount for Waco ISD area homeowners," Duncan said.
Duncan believes the increased homestead exemption promotes home ownership across the state. He also noted, in the past two years, there has been a total $100,000 increase in Homestead exemptions.
Neighbors over the age of 65 will also see a bigger tax break. Previously the homestead exemption for those age 65 and older was $110,000, now the exemption is $160,000.
"Anything that makes homeowners easier, more palatable, more affordable, we're going to like that," Duncan said.
The tax relief comes with trade-offs for local school districts. Waco ISD faces a value loss of more than $31 million due to the increased exemption. However, state funding is required to offset that loss because of a state mandate, shifting the financial burden from taxpayers to the state budget.
For families like Ross's, the savings will make a meaningful difference in their daily lives.
"That money can go towards anything from groceries to a college fund to our daughter, investing is something we're trying to do, so anything we can save will be very beneficial," Ross said.
Waco ISD noted that the added pressure on the state budget "could ultimately reduce funds available for future funding increases."
"The increased exemptions, primarily homestead and over 65, resulted in a value loss to Waco ISD of $31,136,191. However, the Foundation School Program is designed to hold districts harmless in the way it interacts with local property tax collections. State law mandates additional state funding to offset the revenue loss, shifting the burden from the local taxpayer onto the state budget. The decrease in property taxes will result in increased pressure on the state budget in covering the cost of public education and could, ultimately, reduce funds available for future funding increases."
The increased tax exemption is a part of Governor Abbott's property tax relief package for Texans.
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