The Flower Mound Town Council on Monday night voted unanimously to raise its homestead exemption in a continued effort to give a bit of property tax relief to town residents.
The standard residential homestead ad valorem tax exemption was raised from 12.5% to 15%. The town tax rate will either stay the same or go down, as home appraisals and taxable values are continuing to rise. One council member pointed out that the raised exemption will give residents “a little bit of relief, and it’s not going to impact our budget” in the next fiscal year.
Council member Ann Martin pointed out that the with the homestead exemption taking some of the financial burden off of homeowners and saddling it more with commercial property owners, residents may still end up paying more.
“When we look to commercial property owners to take up the slack a little bit, it will eventually impact our residents and people who patronize our commercial places because … the cost of their goods and services will be increased,” Martin said. “So one way or another, people who live here and shop here and have services here, ultimately, will be paying the price. So I feel a little bit that it’s maybe a shell game.”
Property taxes have been a priority for council members for the last several years. The council approved an exemption of 2.5% in 2018, then raised it to 5% in 2021, 10% in 2022 and 12.5% in 2023. The state limit is 20%.
The tax rates will become effective with FY 2024-25.
