The Prosper Town Council unanimously voted to adopt a 12.5% homestead exemption during June 28 council meeting. This 2.5% increase to the current 10% homestead exemption that the Town has had in place since 2017 will produce approximately $778,000 in property tax savings for Prosper homeowners. This new 12.5% exemption will be reflected on tax bills due in January 2023.
The Council Finance Subcommittee and Town staff have studied the impact of rising property values and made the recommendation to increase the homestead exemption by an additional 2.5%. Raising the homestead exemption rate gives property tax relief to Prosper homeowners who are facing unprecedented increases in home values while providing a more equitable distribution of the property tax burden for commercial and residential property owners. The exemption is part of overall discussions regarding the proposed FY 2022-2023 Budget. A Budget Work Session will be held on July 12 and Public Hearings regarding the proposed budget and tax rate will be held later this summer.
“With the increase in home values and property taxes in Prosper, the Town Council has carefully listened to the needs of our residents who qualify for this homestead exemption,” said Mayor David Bristol. “We believe now is the right time to provide this 12.5% relief to those qualified homeowners with homestead status. This will also allow for us to maintain a stable tax rate.”
A tax freeze for residents over the age of 65 or disabled has been in place since 2004. In 2015, the Town adopted a 7% homestead exemption before raising it to 10% in 2017.
To qualify for the homestead exemption, Prosper residents must:
o Own the property on January 1
o Occupy the property as principal residents on January 1
o Have not claimed a residential homestead exemption (neither you nor spouse) on any other property
More information about the homestead exemption:
o Collin County Appraisal District (Collin County residents) collincad.org
o Denton County Appraisal District (Denton County residents) dentoncad.com