Lake Highlands - Lakewood | July 2022

INSIDE INFORMATION

2022 REAL ESTATE EDITION

THE SCOOP ON HOMESTEAD EXEMPTIONS COMPILED BY JACKSON KING & JAKE MAGEE Homestead exemptions are a way for homeowners to save money on their property tax bills. Dallas City Council approved an increase in the homestead property tax exemption June 8 for homeowners who are disabled or age 65 and older. The new exemption is up to $115,500 and will apply to the 2022-23 tax year beginning Oct. 1. To apply, visit the Dallas County Appraisal District at www.dallascad.org.

WHAT IS A HOMESTEAD EXEMPTION? Exemptions allow homeowners to save on property tax bills. An exemption includes withheld value and a homestead cap.

WITHHELD VALUE

HOMESTEAD CAP

With exemption Appraised value

A homestead exemption removes some or all of a home’s value from being taxed. School districts must oer a $40,000 exemption, and other entities may exempt up to 20% of a home’s value.

In addition, a homestead exemption limits the increase of your appraised property value to 10% annually, so long as no additional improvements or extensive renovations are made to the property.

$300,000

– $40,000 School district exemption

Without exemption Appraised value Dallas ISD

Appraised home value 2021: $300,000 2022: $360,000

20%

$300,000

$260,000

Dallas ISD 2021-22 tax rate

$0.01248235*

2021-22 tax rate

Taxable value without exemption 2022: $360,000

Total owed to Dallas ISD

$3,245.41

$3,744.71

SOURCES: TEXAS COMPTROLLER, DALLAS PROPERTIES, DALLAS COUNTY

*TAX RATE IS THE DISTRICT RATE OF $1.248235 DIVIDED BY 100

Taxable value with exemption 2022: $330,000

$3,744.71

= $3,245.41

$499.30 Savings with exemption

–

APPRAISAL DISTRICT COMMUNITY IMPACT NEWSPAPER.

TYPES OF

LOCAL EXEMPTIONS

The following general exemptions exist for Lake Highlands and Lakewood homeowners. Appraisal districts can provide a comprehensive list.

Various homestead exemptions are available to Texan homeowners. General residence , the most common and easiest exemption to get, is for a homeowner’s primary residence. Age 65 or older exemption gives an additional $10,000 o for school districts in addition to the $40,000 general residence exemption. This exemption also exemptions vary but can equal up to 100% of a home’s value from all taxing entities. Spouses of persons killed in the line of duty exemptions can withhold 100% of a home’s value from taxation, so long as the surviving spouse has not remarried. freezes school district taxes. Disabled persons and veterans HOMESTEAD EXEMPTIONS

SCHOOL DISTRICT EXEMPTIONS Richardson ISD Dallas ISD

CITY EXEMPTIONS Dallas

COUNTY EXEMPTIONS Dallas County

o home’s value $40,000

20% o home’s value

""THIS EXEMPTION INCREASE, WHICH WILL MEAN A REDUCTION IN THEIR PROPERTY TAX, CAN MEAN THE DIFFERENCE BETWEEN BEING ABLE TO AFFORD GROCERIES OR PRESCRIPTION MEDICATION."" CARA MENDELSOHN, DALLAS CITY COUNCIL DISTRICT 12, CHAIR OF GOVERNMENT PERFORMANCE AND FINANCIAL MANAGEMENT COMMITTEE

TEXAS LAW CHANGES Two recent law changes benet new and longtime bills by allowing homeowners to acquire exemptions earlier and increasing how much value is withheld. homeowners’ property tax

As of Jan. 1, 2022, a qualied homeowner can claim a homestead exemption as of the date they own and occupy the property so long as the previous owner did not claim a homestead exemption in the same year. The change allows homeowners to benet from a homestead exemption, including the cap, earlier. Texas Tax Code change Homeowners had to wait until Jan. 1 of the year after they purchased the home to claim a homestead exemption. They would not see a cap on their property appraisal until Jan. 1 after the year they bought their home.

State propositions 1 & 2 The homestead exemption for each school district across the state was $25,000 .

If residents who purchased a home in 2021 have been granted a homestead exemption this year, they will see withheld value from various taxing entities in 2022, but their homestead value will not be capped at 10% growth until 2023.

Texas residents voted in May in favor of a proposition upping the school district exemption to $40,000 . Texas voters also approved a separate proposition to potentially reduce tax rates for school maintenance and operations for homeowners with an age 65 or older or veteran exemption.

LAKE HIGHLANDS LAKEWOOD EDITION • JULY 2022