Fort Worth approves extra tax break for seniors and residents with disabilities
The Fort Worth City Council voted unanimously Tuesday to increase the homestead exemption for residents 65 and older and those with disabilities.
The city previously allowed people in those groups to knock $40,000 off their home value for tax purposes, but Tuesday’s ordinance increases the amount to $60,000.
Residents who qualify for this exemption could see as much as a $142 savings on their city tax bill.
This is just the first step in the city’s effort to deliver meaningful property tax relief to residents, Mayor Mattie Parker said Tuesday.
Parker acknowledged the state Legislature is working on its own measures to reduce property taxes, but said the city couldn’t wait any longer.
She also highlighted Tarrant County’s efforts to reduce property taxes by approving 10% homestead exemptions for the county and hospital district.
Those changes are expected to reduce residents’ county property tax bills by $134.
Any changes have to be passed before July 1 in order to be applied to residents’ 2024 tax bill, according to a city press release.
This is the first time in over 32 years the city has raised these exemptions. The exemption for those with disabilities was raised to $40,000 in 1991 and the 65 and up exemption was raised to $40,000 in 1984.
It’s not clear exactly what financial impact this could have on the city, however, city staff estimates every $5,000 increase could reduce the city’s revenue by $1.7 million, according to an email shared with the Star-Telegram.
This change could cost Fort Worth around $6.8 million in lost revenue, according to city estimates.
Several council members echoed Parker saying this is only the first step the city is taking to reduce property taxes.
The council will take up the 2024 budget in August and vote on whether to change the city tax rate before the fiscal year ends in late September.
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