Homestead Ordinance to Provide Tax Relief Through Maximal Use of the Statutory Residence Homestead Exemption

The growth of municipal property taxes has steadily increased over the past twenty years, fast outpacing population and inflation growth. Although the Texas Legislature has provided cities with a tool to lessen the tax burden on residents — allowing cities to exempt up to 20 percent or $5,000 of the value of a homestead residence from municipal taxation — many cities have not yet made use of this permissive tool. Thus, the following ordinance gives practical effect to the Legislature’s homestead exemption.