Flower Mound Town Council unanimously approved an increase to the Town’s homestead exemption from 12.5 percent to 20 percent at its meeting on Monday.
The original plan, according to the agenda, was to increase the exemption from 12.5 percent to 17.5 percent, but Council believed it was best to go ahead and bring it up to 20 percent, which is the maximum they can impose as a Town under state law.
“My neighbors are going to fight their taxes for the first time in a while,” said Deputy Mayor Pro Tem Adam Schiestel. “I’m having a hard time finding a rationale to go to 17.5 if we can go to 20 percent.”
If the increase had gone up to 17.5 percent, a Flower Mound resident with a house valued at $465,000 would have saved about $315. Now, that same resident would save around $360.
According to the Town’s Chief Financial Officer John Zagurski, the tax rate of $0.387278 should remain the same based on different factors.
The Town’s decision came hours after Texas Governor Greg Abbott signed three bills into law at Robson Ranch that raised property tax exemptions for homeowners and small businesses.
Mayor Cheryl Moore was hesitant about making the extra 2.5-percent jump, but warmed up to the idea as the discussion went on.
Mayor Pro Tem Ann Martin questioned if the Town might have to reduce the exemption in the event of an economic downturn, similar to the 2008 housing crisis.
“It’s going to take a huge market shift,” said Zagurski. “Even in ’07 and ’08, we didn’t see a decrease. The last real decrease was in the late 90s.”
Schiestel emphasized the importance of Flower Mound trying to limit what they gain from property taxes. The Town is given a percent of a homeowner’s paid property taxes and the council members agreed they want to focus on homeowner relief.
“We’ve really tried hard to not see out-of-pocket inflation,” said Schiestel. “Certainly, we’re doing our part. And I think we should continue to do so.”
According to the Town, the increased exemption would shift the tax burden to non-homesteaded properties, like rental properties, and commercial properties like businesses.
The change will be reflected on property tax bills that are sent out later this year.
Residents that have already applied for a homestead exemption don’t need to reapply. New homeowners or those who have not yet filed can apply through the Denton Central Appraisal District.
For more information, visit Flower Mound’s website.
