Property Tax Bill Slightly Lowers Thanks to Raised Homestead Exemption19 Jun Twelve Rivers Realty
Austinites with a homestead exemption will get a bigger break on their property taxes next year.
Austin City Council approved on Thursday raising the homestead exemption from 8 percent to 10 percent of a home's appraised value, according to multiple media reports.
The Austin American-Statesman reports that the owner of a median-value home of $303,500 would save an additional $19 a year once the higher exemption goes into effect in January.
Council voted 7-4 in favor of the higher exemption. The resolution's sponsors — Ellen Troxclair, Leslie Pool, Ann Kitchen and Ora Houston — voted for it along with Alison Alter, Pio Renteria and Mayor Steve Adler.
Greg Casar, Delia Garza, Jimmy Flannigan and Kathie Tovo voted against the higher exemption, the Austin Monitor reports.
The higher homestead exemption will result in a loss of $4.8 million from the city's property tax revenue, the Monitor notes, or about one half of 1 percent of the $1 billion general budget.
Affordable housing bond
Also on Thursday, Adler and four Council members supported the idea of putting an affordable housing bond on the November ballot.
Per the Monitor, City staff have proposed a $816 million bond package, which would direct $161 million to affordable housing, $176 million to transportation, $167 million to parks, $184 million to stormwater and water-quality improvements and $128 million to renovations of city facilities.
That bond package would lead to a 1.75-cent hike on property taxes for every $100 of valuation, according to the Monitor.
However, Council Member Casar has proposed diverting up to $300 million to affordable housing, according to the Monitor.
This article was originally written and published by the Austin Business Journal.