G-94-06-23-8A - 6/23/1994a
ORDINANCE NO. ' q - - 3
AN ORDINANCE AMENDING CHAPTER 1, SECTION 1.701(1) AND
(3), CODE OF ORDINANCES (1990 EDITION) CITY OF ROUND
ROCK, TEXAS TO INCREASE HOMESTEAD TAX EXEMPTION FOR
THE ELDERLY; TO INCREASE THE MAXIMUM HOMESTEAD TAX
EXEMPTION; PROVIDING A SAVINGS CLAUSE AND REPEALING
CONFLICTING ORDINANCES AND RESOLUTIONS.
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF ROUND ROCK,
TEXAS, THAT:
I.
That Chapter 1, Section 1.701(1), Code of Ordinances (1990
Edition) City of Round Rock, Texas is hereby amended to read as
follows:
(1) HOMESTEAD TAX EXEMPTION FOR THE ELDERLY
From and after January 1, 1994, twenty-two thousand
dollars ($22,000.00) of the assessed value of residence
homesteads as defined by law of persons who have attained
the age of sixty-five (65) years of age, on or before
January 1st of the year for which the exemption is
claimed, shall be exempted form city ad valorem tax;
provided, however, that where the ad valorem tax has
heretofore been pledged for the payment of any debt, the
taxing officers of the city shall have authority to
continue to levy and collect the tax against the
homestead property at the same rate as the tax so pledged
until the debt is discharged, if the cessation of the
levy would impair the obligation of the contract by which
the debt was created.
II.
That Chapter 1, Section 1.701(3), Code of Ordinances (1990
Edition) City of Round Rock, Texas is hereby amended to read as
follows:
(3) MAXIMUM HOMESTEAD TAX EXEMPTION
In no event shall the tax exemption on any residence
homestead exceed twenty-two thousand dollars
($22, 000.00) .
KS\ORDINANCE
ORO6094D.2
III.
A. All ordinances, parts of ordinances, or resolutions in
conflict herewith are expressly repealed.
B. The invalidity of any section or provision of this
ordinance shall not invalidate other sections or provisions
thereof.
U
READ and APPROVED on first reading this the ---1-11-1 day of
r , 1994.
READ, APPROVED and ADOPTED on second reading this the
day of Lt , 1994.
ATTEST:
E LAND, City Secretary
(41 ,//
CHARLES CULP PE Mayor
City of Round Roc , Texas
2.
DATE: June 21, 1994
SUBJECT: City Council Meeting, June 23, 1994
ITEM: 8. A. Consider an ordinance concerning increasing homestead property tax exemptions
for persons 65 and over. (Second Reading)
STAFF RESOURCE PERSON: David Kautz
NARRATIVE AND STAFF RECOMMENDATION:
The Homestead Property Tax Exemption — Age 65 and Over
This exemption is provided by the City to qualifying homestead property owners and is in
addition to other exemptions. A residence homestead is usually a house and a yard used as
the principal residence of the owner. Condominiums, townhomes, co—op housing and similar
units can also qualify as residence homesteads.
An exemption excludes part of the property value from taxation and lowers taxes for that
property as a result. For example, if a residence homestead is valued at $75,000 and qualifies
for the $15,000 Over -65 exemption, City taxes would be calculated as if the property was worth
only $60,000. In other words, in this case, $15,000 of the property's value is not taxed by the
City.
Advisory Board for the Aging Recommendation
In October of last year, the board recommended to the Council that the Over -65 homestead
property tax exemption be increased from $15,000 to $22,000.
Fiscal Impact
Changes in the value of exemptions are inserted into the Effective Tax Rate calculation
formula and mathematically influence the rate. In other words, if exemptions increase, the
total value of taxable property is reduced and the Effective Tax Rate is increased.
The chart below estimates the effect on property tax revenue if the exemption is increased.
Number of
Over -65
homesteads
Total Value of
Exemptions at
$15,000 each
Revenue
Exempted
(currently)
Total Value of
Exemptions at
$22,000 each
Revenue
Exempted
(proposed)
Effect of the change on the
Tax Rate
645
$9,675,000
$48,375
$14,190,000
$70,950
Less than 1/4 cent increase ($.0017)
Property owners benefited by this exemption would see an additional annual savings of $35 per
property.
Implementation Date
If approved, this exemption will become effective immediately and will appear on the October
tax billings.