May 22, 2015 4:46 PM

Compromise on homestead exemption addresses business and county concerns

“This solution does not create a situation where taxes are shifted from homeowners to business over time.”

A proposed $25,000 state homestead exemption will be reflected in tax bills that go out to homeowners in October, even though a vote won’t occur until November.

The Senate initially proposed a homestead exemption of 25 percent, tied to the median value of a Texas home. The business community, however, nixed that proposal early, fearful that rising property values would continue to shift more of the state’s tax burden to business, with no particular control over the growth rate.

“We much prefer the straight exemption over the median value,” said Dale Craymer of the Texas Taxpayers and Research Association. “This solution does not create a situation where taxes are shifted from homeowners to business over time.”

By Kimberly Reeves