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    5. a.    
BAYTOWN CITY COUNCIL MEETING
Meeting Date: 06/25/2020  
Subject:    Amending Chapter 90 Taxation to Increase the Residential Homestead exemption
Prepared for: Brent Yowell Prepared by: Leticia Brysch, City Clerk's Office
Department: Finance  

Information
ITEM
Consider an ordinance amending Chapter 90 "Taxation," Article II "Ad Valorem Taxes," Section 90-27 "Exemptions," Subsections (a) "Disabled adults" and (b) "Adults 65 years or older" of the Code of Ordinances, City of Baytown, Texas to (i) increase the exemption from taxation for disabled adults to $60,000 and (ii) to increase the exemption from taxation for adults sixty-five (65) years or older to $60,000, for residential homesteads.
PREFACE
This proposed ordinance amends Chapter 90 "Taxation," Article II "Ad Valorem Taxes," Section 90-27 "Exemptions," Subsections (a) "Disabled adults" and (b) "Adults 65 years or older" of the Code of Ordinances, City of Baytown, Texas to:
  1. increase the exemption from taxation for disabled adults to $60,000 and
  2. to increase the exemption from taxation for adults sixty-five (65) years or older to $60,000,
for residential homesteads.

Currently, the exemptions are $50,000 for each, as such this ordinances increases such exemption by $10,000.  These exemptions are in additional to the residential homestead exemption.  For example, a person living within Baytown city limits with a residential homestead valued at $150,000 would receive the residential homestead of 20% or in this case $30,000.  On top of that, if they are disabled or 65 or older, they would also remove $60,000 extra from their value.  In this case, the total value for city property taxes would be $60,000 ($150,000 - $30,000 - $60,000).  If adopted by Council, the extra annual property tax savings for someone in one of these two categories would be $80.20.
RECOMMENDATION
Staff recommends approval.

Fiscal Impact
Fiscal Year: 2020-21
Acct Code:
Source of Funds (Operating/Capital/Bonds):
Funds Budgeted Y/N:
Amount Needed:
Fiscal Impact (Additional Information):
Additional levy loss under these increased exemptions is approximately $500,000 in FY20-21.
Attachments
Ordinance - Chapter 90 Taxation to Increase the Residential Homestead Exemption

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