Dallas City Council Approves Homestead Exemption as Property Tax Relief Debate Rages On Statewide

It seemed the Texas Legislature was close to agreeing on a plan for property tax relief, but almost a month into a special session, that hasn’t happened. 

The House and the Senate are standing firm in their proposals. Gov. Greg Abbott has said he remains committed to lowering property taxes and he’s open to a compromise. 

Texas House Speaker Dade Phelan announced Tuesday the formation of a “Select Study Committee on Sustainable Property Tax Relief.”

“The House is the only chamber to pass property tax relief that is germane to Gov. Abbott’s call and we have voted on the largest property tax cut in state history three times now,” Phelan said. “As we wait for the Senate to follow the House’s lead, we are taking a proactive step to tackle what comes next.”

In the meantime, the Dallas City Council is forging ahead with providing relief to senior and disabled residents in the form of a homestead exemption increase. 

Property Tax Homestead Exemption

The Dallas City Council authorized last week an increase in the homestead property tax exemption from $115,500 to $139,400 for persons who are disabled or 65 or older. 

The item passed on the consent agenda in the midst of a 15-hour meeting largely consumed by big issues like Dallas Area Rapid Transit, the city’s Code of Ethics, and short-term rentals. 

“Sometimes on this consent [agenda], really amazing things we just gloss over,” said District 1 Councilmember Chad West. “I just didn’t want to miss this today … We’re moving it up from $115,500 to $139,400 beginning with the 2023 tax year to help our seniors and our disabled neighbors to stay in their homes. I’m very happy to do that as I’m sure my colleagues are too.”

District 8 Councilman Tennell Atkins also highlighted the importance of the homestead exemption increase. 

“For the last 10 years we have always tried to increase the homestead and property tax exemption for seniors and disabled [residents],” he said. “They deserve it. We’re going to increase by $23,000. I know the property values are going up and they need everything to help, especially the seniors. I want to make sure that every year we continue to increase the homestead property tax.”

The City Council is set to hear an update on the biennial budget Wednesday, June 21. Final numbers will be published in City Manager T.C. Broadnax’s proposed budget on Aug. 8.