Whether a municipality is authorized to adopt a residential homestead property tax exemption that establishes a floor for the exemption in an amount greater than $5,000, and, if not, whether an appraisal district may disregard or modify the exemption

What’s the answer? A home-rule municipality most likely lacks authority to increase the floor above $5,000.

How do cities set a homestead exemption above $5000? By raising the tax exemption percentage, up to twenty percent, as authorized in the Constitution.

Why is that the answer? The Texas Constitution requires that property be taxed in proportion to its value and a flat amount is not an amount in proportion with value. TEX. CONST. art. VIII, § l(a) and (b)

Any other nuggests of potential legislation in this opinion? Yes, that chief appraisers maintain both a legal & ethical duty to determine that an exemption is inapplicable to the extent it violates the law.

KP- 0215 (2018)