The City Council adopted an ordinance Monday to increase the property tax exemption for disabled individuals and senior citizens (age 65 or older) from $85,000 to $100,000 due to expected increases in property values.
The increase will amount to a $625 tax savings for the average senior/disabled homeowner, or a $31.26 tax reduction per $5,000 of value, based on the current tax rate.
Under the City’s Financial Policies, the City Council regularly reviews the property tax exemption for citizens over age 65 and disabled persons with a goal to maintain a tax benefit of approximately 30 percent of the average home value. The new, increased exemption is expected to keep Richardson within the policy goal for the next two years.
The appraisal districts will incorporate the increased exemption on notices mailed to qualified residents in April.