HomeMy WebLinkAboutOrd 1050-2023-06 Amending Code Article 2.03 to Adopt a Partial Exemption From Ad Valorem TaxesCITY OF ANNA, TEXAS
ORDINANCE NO. _1650 - 93 -O(o
AN ORDINANCE OF THE CITY OF ANNA, TEXAS, AMENDING ARTICLE 2.03 OF
THE ANNA CITY CODE OF ORDINANCES TO ADOPT A PARTIAL EXEMPTION
FROM AD VALOREM TAXES FOR RESIDENTIAL HOMESTEADS; PROVIDING A
SAVINGS CLAUSE; PROVIDING A SEVERABILITY CLAUSE; PROVIDING AN
EFFECTIVE DATE; AND PROVIDING FOR THE PUBLICATION OF THE CAPTION
HEREOF.
WHEREAS, the City of Anna, Texas is a duly formed home -rule municipality; and
WHEREAS, Texas Tax Code § 11.13(n) allows a municipality to adopt an
exemption for residential homesteads that is in addition to the residential
homestead exemption set forth in other subsections of said statute; and
WHEREAS, under the City of Anna Home Rule Charter § 7.19(b), the City has the
power to grant tax exemptions in accordance with the laws of the State of Texas;
and
WHEREAS, this exemption shall apply in all subsequent tax years unless and until
the City repeals the exemption; and
WHEREAS, the City Council of the City of Anna, Texas finds that the exemption
adopted under this ordinance is in the best interest of the citizens of the City of
Anna, Texas;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
ANNA, TEXAS, THAT:
Section 1. Recitals Incorporated.
The above -referenced recitals are incorporated herein as the findings of the City
Council as if set forth in full.
City of Anna, Texas Ordinance No. 10 50 - 20 23 - O!o Page 1 of 3
Section 2. Code amended; exemption adopted.
2.01 The Anna City Code of Ordinances is hereby amended to add a new Section
2.03.032 to read as follows:
Article 3.02 TAXATION
Division 2. Property Tax
Sec. 2.03.032 Residential Homestead Exemption
(a) Homestead exemption granted. Upon compliance with all requirements
of this section and all other applicable laws and resolutions, 3% of the assessed
value of residence homestead of an individual shall be exempt from ad valorem
taxes levied by the city. If the percentage set herein produces an exemption in a
tax year of less than five thousand dollars ($5,000) when applied to a particular
residence homestead, the individual is entitled to an exemption of five thousand
dollars ($5,000) of appraised value.
(b) Effective date: duration. The exemption granted by this section shall be
effective as to such residence homesteads as may qualify hereunder
commencing with the 2023 tax year. The exemption shall remain in effect from
year to year unless and until it is repealed by ordinance adopted by the City
Council.
(c) Limitations of exemption. The exemption authorized hereby shall extend
only to a residential homestead as same may be defined by the laws of the
state. Such exemptions shall be allowed only if the property in question is in fact
a residential homestead of the individual during the tax year and the individual
has otherwise complied with all applicable laws and regulations.
Sec. 2.03.033 Age 65 or Older or Disabled Residential Homestead
Exemption
(a) Age 65 or Older or Disabled Homestead exempti�granted. Upon
compliance with all requirements of this section and all other applicable laws
and resolutions, thirty thousand dollars ($30,000) of the assessed value of
residence homestead of persons age 65 or older or disabled shall be exemp
City of Anna, Texas Ordinance No. 1060 - 260-3 -0(0 Page 2 of 3
from ad valorem taxes
(c) Effective date: duration. The exemption granted by this section shall be
effective as to such residence homesteads as may qualify hereunder
commencing with the 2023 tax year. The exemption shall remain in effect from
year to year unless and until it is repealed by ordinance adopted by the City
Council.
(d) Limitations of exemption. The exemption authorized hereby shall extend
only to a residential homestead as same may be defined by the laws of the
state. "Disabled" has the same meaning as set forth in the Texas Tax Code
Section 11.13(d), as it currently exists or may be amended. Such exemptions
shall be allowed only if the property in question is in fact a residential
homestead of the individual during the tax year and the individual has otherwise
complied with all applicable laws and regulations.
Section 3. Savings, Severability and Repealing Clauses.
All ordinances of the City in conflict with the provisions of this ordinance are repealed to
the extent of that conflict. If any provision of this ordinance shall be held to be invalid or
unconstitutional, the remainder of such ordinance shall continue in full force and effect
the same as if such invalid or unconstitutional provision had never been a part hereof.
The City declares that it would have passed this ordinance, and each section,
subsection, clause, or phrase thereof irrespective of the fact that any one or more
section, subsection, sentence, clause, and phrase be declared unconstitutional or
invalid.
Section 4. Publication of the Caption Hereof and Effective Date.
This ordinance shall be in full force and effective from and after its passage and upon
the posting and/or publication, if required by law, of its caption and the City Secretary is
hereby directed to implement such posting and/or publication.
PASSED, ADOPTED AND
this 131 day of June 2023.
ATTESTED:
City Secretary, Carrie L. Land
the City Council of the City of Anna. Texas,
Pike
City of Anna, Texas Ordinance No. 10 50 - 20X3-0(o Page 3 of 3
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Taxable Assessed Value
10-year History
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THE CITY OF
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Property Tax Exemptions
• All real and tangible personal property located in the state is taxable unless
an exemption is required or permitted by the Texas Constitution.
Local taxing units can offer a variety of partial or total exemptions from
property appraised values.
• Local option exemptions are one way for cities to lower the property tax
bill of their residents.
THE CITY OF
Property Tax Exemption Types
• Residence Homestead (Tax Code Section 11.13)
• Cities have option of offering up to 20% but not less that $5,000
• Owner must have ownership interest in property and occupy as principal residence
• Age 65 or Older or Disabled
Cities have option of offering in an amount not less that $3,000
• Disabled person must meet definition of disabled under Federal Old -Age, Survivors and Disability
Insurance Act (Social Security)
• Eligible disabled person age 65 or older may receive either Age 65 or Disabled but not both
THE CITY OF
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Tax Structure Comparison
Homestead Exemption 1%, $5,000 min 3%, $5,000 min
Over Age 65 Exemption $30,000 $30,000
Disabled Person Exemption - $30,000
Property Tax Rate 0.539750 0.533000
THE CITY OF
Potential Revenue Change
FY2023 Projected ,.
Homestead Exemption $103,644 $286,314
Over Age 65 Exemption $117,558 $201,759
Disabled Person Exemption - $29,794
THE CITY OF
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Some Points to Consider
• From FY2022 to FY2023, Average Home Values increased 30.7%; 1% General Homestead
Exemption was added
• In FY2024, Average Home Values are projected to increase 17.1%; 3%General Homestead
Exemption can provide additional relief with no impact to City operations
• General Homestead Exemption can be increased in future years as sales tax base of the
community grows
• General Homestead Exemption is for homeowners who occupy the home as a primary
residence; it does not incentivize rental homeowners
THE CITY OF
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July 1 Adoption Deadline
• Section 11.13 (n). Residence Homestead
• In addition to any other exemptions provided by this section, an
individual is entitled to an exemption from taxation by a taxing unit of a
percentage of the appraised value of his residence homestead if the
exemption is adopted by the governing body of the taxing unit before
July 1 in the manner provided by law for official action by the body.
THE CITY OF
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Questions?
THE CITY OF