Mansfield approves property tax break. Here’s how much homeowners could save
Mansfield homeowners could save a couple hundred dollars on their property tax bill after the city approved a 10% homestead exemption.
In a move that council members and mayor called overdue, Mansfield unanimously approved the exemption during its June 23 meeting. For homeowners, city tax bills will be calculated on 90% of the value of their home, under the exemption. The savings would be about $190 per year for the owner of a $270,000 home.
The exemption is available to anybody with a principal residence in the city. Homeowners can only declare one home a homestead to receive the exemption.
The new exemption won’t feel like much to residents, councilwoman Julie Short said during the council meeting, but it is a step in the right direction, especially with economic woes brought on by COVID-19.
“It’s a way to show citizens that we hear you, we want to help,” Short said. “This isn’t going to send anybody on vacation because they’re saving so much on their tax bill, but we are moving in the right direction and hopefully we can increase it down the road.”
Peter Phillis, the city’s deputy city manager of finance, said the homestead exemption has been in the works for a long time, but the city did not have the steady tax revenue, both from sales tax and property tax. Even with the expected drop in sales tax revenue related to the coronavirus pandemic, the city expects to have enough income to provide the exemption.
“Homeowners have seen increasing property tax bills on average,” Phillis said. “This should provide for some relief from the increases that have been incurred over the past several years.”
Councilman Terry Moore expressed concern about the ability of the city to continue services and employee compensation without layoffs.
Mayor David Cook said the homestead exemption is the result of a lot of work on the part of the city council to create more tax revenue for the city.
The average home value in Mansfield has grown from about $175,000 in 2015 to $270,000.
“I want our city to see the growth,” Cook said. “I think when you see this type of growth over basically a five or six year period ... that doesn’t organically happen.”