Frisco | July 2022

INSIDE INFORMATION

THE SCOOP ON HOMESTEAD EXEMPTIONS COMPILED BY MIRANDA JAIMES AND JAKE MAGEE Frisco homeowners can expect tax breaks next year in the form of a homestead exemption. City Council took action to approve an exemption increase in ad valorem property taxes for residents within the city at its June 21 meeting. The change raises the homestead exemption from 10% to 12.5%. To apply, visit www.collincountytx.gov or www.dentoncad.com.

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 an appraised property value to 10% annually, so long as no additional improvements or extensive renovations are made to the property. City and county exemptions are then applied to the taxable value with the cap applied.

$700,000

– $40,000 School district exemption

Without exemption Appraised value

Appraised home value 2021: $700,000 2022: $840,000

$700,000

$660,000

20%

Frisco ISD 2021- 22 tax rate

X $0.012672*

Taxable value without exemption 2022: $840,000 Taxable value with exemption 2022: $770,000

Total owed to FISD

$8,870.40

$8,363.52

SOURCES: TEXAS COMPTROLLER, COLLIN COUNTY CENTRAL APPRAISAL DISTRICT, DENTON COUNTY CENTRAL APPRAISAL DISTRICTCOMMUNITY IMPACT NEWSPAPER

*TAX RATE IS THE DISTRICT RATE DIVIDED BY 100.

$8,870.40

= $8,363.52

$506.88 Savings with exemption

–

TYPES OF

LOCAL EXEMPTIONS The following general exemptions exist for eligible Frisco 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

CITY EXEMPTIONS Frisco 12.5%* o home’s value

COUNTY EXEMPTIONS Collin County

SCHOOL DISTRICT EXEMPTIONS Frisco ISD

Denton County

o home’s value $40,000

1% o home’s value

5% o home’s value

*AS OF THE 202223 FISCAL YEAR

“THIS ACTION PROVIDES HOMEOWNERS RELIEF ON THEIR OVERALL PROPERTY TAX BILL. WE’RE INCREASING THE HOMESTEAD EXEMPTION AND SHIFTING THAT TAX BURDEN TO OUR GROWING COMMERCIAL PROPERTY TAX BASE, WHICH IS A STRATEGY COUNCIL HAS TALKED ABOUT FOR YEARS.” BILL WOODARD, FRISCO CITY COUNCIL MEMBER AND FRISCO BUDGET & AUDIT COMMITTEE CHAIRMAN

COMMUNITY IMPACT NEWSPAPER • COMMUNITYIMPACT.COM