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HomeMy WebLinkAboutItem 10 - Limitation on Tax IncreasesMEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: BRUNO RUMBELOW, CITY MANAGER MEETING DATE: JUNE 21, 2022 SUBJECT: ADOPTION OF AN OPTIONAL LIMITATION ON PROPERTY TAX INCREASES FOR OVER 65 AND DISABLED PERSONS RECOMMENDATION: City Council to consider adoption of an ordinance to consider an optional limitation on tax increases for residence homesteads of persons who are disabled or at least 65 years of age. FUNDING SOURCE: Funding Source is not applicable BACKGROUND: The City wishes to grant tax relief to the residential homestead property taxes of those persons who are at least 65 years of age or disabled. The City believes this to be in the best interest of the community as taxable values of homes continue to rise. An analysis performed indicated this would have minimal impact to future tax revenues due to current annual limitations on revenue increases allowed by the State of Texas. Staff recommends approval.