Frisco approves 'Senior Tax Freeze', raises residential homestead exemption

(June 21, 2022) All Frisco homeowners (with homestead status) will soon get a bigger break on their property tax bill. The City of Frisco's homestead exemption is increasing. Plus seniors, those Over 65 (and disabled), will get even more property tax relief in the form of a 'senior tax freeze'.

Tonight, the Frisco City Council unanimously voted to adopt a 12.5% residential homestead exemption. The council adopted its first homestead exemption of 7.5% in 2017. The following year, city council leaders raised the homestead exemption to 10%. This year, staff recommended raising the exemption by 2.5%.

"Rising home values, as well as inflation, coupled with our aging city, market conditions and our strong, financial policies, make now a good time to implement a 'senior freeze' (Over 65 or disabled exemption)," said Jenny Hundt, Director of Budget and Strategic Planning."Those factors also make it possible for us toincrease our homestead exemption to benefit all our homeowners."

There are approximately 57,000 single family homes in Frisco, including about 41,000 with 'homestead' status. More than 8,000 homeowners are Over 65 (or disabled).

Raising the homestead exemption to 12.5% translates to $2.2 million in savings to homeowners. The 'senior tax freeze' has a $1.5 million impact.

"Our City Council has a goal to provide as much property tax relief as possible," said Anita Cothran, Chief Financial Officer. Our council Budget & Audit committee, along with staff, has studied our timing options given our city's financial health. We're confident we can provide these benefits now and continue to deliver exemplary service without compromising maintenance and operations or impacting reserves."

"This action provides homeowners relief on their overall property tax bill," said Bill Woodard, City Council, Budget & Audit committee chairman. "We're increasing the homestead exemption and shifting that tax burden to our growing, commercial property tax base, which is a strategy council has talked about for years."

"We've heard our residents' concerns over rising home values and their need for some property tax relief," said Mayor Jeff Cheney. "Like our city, our senior population is growing. We believe now is the right time to provide that relief to seniors, especially those on fixed incomes. Our seniors will get some relief in the form of a 'freeze' while all our homeowners (with homestead status) will benefit from the increased homestead exemption."

In a memo to council, staff also noted the tax relief measures will "…allow us to maintain a consistent tax rate".

The higher homestead exemption will be effective for the January 1, 2022, valuation and will change the taxes due for fiscal year 2023. The Over 65 (or disabled) freeze will also be in effect for the January 1, 2022, valuation and will set the 'ceiling' for the taxes due for fiscal year 2023. The freeze cannot be removed without an amendment to the Texas Constitution.

Homeowners must have 'homestead' status to receive the exemption benefit. To qualify, you must:

• Own the property on January 1;
• Occupy property as principal residence on January 1;
• Have not claimed a residential homestead exemption (neither you nor spouse) on any other property.

Homeowners who have 'homestead' status with their school district will automatically receive the city benefit. For more information, find the Collin County Appraisal District at www.collincad.org . In Denton County, go to www.dentoncad.com .