Have You Filed Your Homestead Exemption? Town Officials Encourage Residents to Take Advantage of this Deduction!

Have You Filed Your Homestead Exemption? Town Officials Encourage Residents to Take Advantage of this Deduction!

Have You Filed Your Homestead Exemption? Town Officials Encourage Residents to Take Advantage of this Deduction!

Eligible homeowners in Prosper are encouraged to take advantage of the Town’s homestead exemption, a 10 percent discount in the taxable value of residential properties.
The homestead exemption, among the most generous in the North Texas area, applies to homes in both Collin and Denton Counties and will remain in effect until repealed by Council vote. Even so, residents who’ve not already applied for the exemption must actively request the exemption from their respective appraisal districts. Those who’ve already done so in previous years, need not reapply.
Homeowners who have not previously applied for a homestead exemption should fill out the necessary forms from their respecting appraisal district between Jan. 1 and April 30.
The exemption, by state statute, is applicable only to homes that serve as the primary residence for the applicant, and only one exemption is applicable. The minimum reduction in value of residential properties is $5,000. The exemption is not applicable to commercial concerns or income-producing properties.
While tax bills for Prosper residents include levies by several entities, the homestead exemption lowers the exposure for property taxes levied only by the Town of Prosper.
First approved as a 7.5 percent exemption in the fall of 2015, an increase to 10 percent was approved by the Town Council last summer.
“Homeowner tax relief is something everyone on Council agrees on,” said Prosper Mayor Ray Smith when the increase was passed. “The value of virtually all homes and property in Proper is rising, so increasing the exemption made perfect sense. People can take advantage of the higher exemption and either save money or redirect it to other purposes.”
Prosper’s 10 percent exemption is the second highest in Collin County. Of the 27 municipalities in Collin County, only eight offer a homestead exemption.
The tax rate of 52 cents per $100 valuation, which has been unchanged in a decade, divides property tax revenue into roughly 36 cents for the General Fund, used for maintenance and operation, and 16 cents for the Interest and Sinking Fund, used to pay debt service.
Taking the homestead exemption into account, the effective tax rate, according to the Collin County Appraisal District, is reduced from $0.52 to $0.4314 per $100 valuation.
The typical home in Prosper is valued at $495,762, and with the exemption in place, the tax exposure will decrease by $49,576, saving the homeowner about $258 in ad valorem taxes to the Town.

WB

cedarbrookmediagroup

Leave a Reply

Create Account



Log In Your Account



%d bloggers like this: