Last month, the Flower Mound Town Council unanimously approved raising the town’s homestead exemption from 2.5% to 5%.
The town’s first homestead exemption was approved in 2018, giving residents who own and live in their Flower Mound home a tax break of $5,000 or 2.5%, whichever was higher.
During the June 21 council meeting, council members said they thought doubling the exemption was a great idea, and they said they’d like to raise it higher, if possible. Interim Town Manager and CFO Debra Wallace said she was comfortable with the 5% but no more. The council and mayor Derek France expressed interest in potentially raising it again in a year. Legally, the most it can be raised is 20%.
The 5% homestead exemption passed by a vote of 5-0. It will become effective with Fiscal Year 2021-22, which begins this fall. The change will save most Flower Mound residents less than $100 per year in property taxes. How it works: Residents who apply for and receive the exemption will be taxed on 95% of the appraised value of their home, saving 5% of their annual property taxes. On a home valued $450,000, the resident will save about $48 over the previous 2.5% exemption.
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