Austin City Council voted to double the city's property tax homestead exemption to 20%, the maximum allowed by state law, on Thursday. City staff estimate that the median homeowner would save $141 in Fiscal Year 2021-22 under this new rate.
Homeowners pay property taxes to multiple entities, including Austin ISD, Travis County, Central Health and Austin Community College District, in addition to the city of Austin. The city's tax rate accounted for less than a quarter of the combined tax rate levied by these five entities.
Supporters say the increased homestead exemption provides necessary tax relief as home values continue to skyrocket—and after council approved approximately $50 million in pandemic-related rental relief. But opponents raised concerns about the percentage-based exemption, which they say disproportionately benefits high-value homeowners and shifts the tax burden onto commercial property owners, who could push it onto renters.
"I know this doesn't come, as with all things, some measure of concern, especially with respect to renters," Adler said. "I think the impact is negligible, but in any event we're doing focused things for renters."
Costs and benefits
Most council members supported the 20% homestead exemption, which they say will provide tangible benefits to their constituents. It is also more palatable thanks to a new state policy, which means an increased homestead exemption would no longer affect the city's total property tax revenue.
Just now: #ATXCouncil unanimously approved increasing Austin's homestead exemption to 20%! We will also be approving millions of dollars in rental assistance, and a huge investment in housing for the currently homeless. We are using all the tools we have to keep Austinites here.
— Paige Ellis, City Council District 8 (@PaigeForAustin) June 10, 2021
District 3 Council Member Sabino "Pio" Renteria said last Thursday that his East Austin constituents would welcome such tax relief given that home prices have risen sharply in recent years. He purchased his own home 42 years ago for $21,000; it is now valued for $668,000.
District 10 Council Member Alison Alter, whose district has the highest median appraised home value, said the measure was a corollary to recent rental assistance, eviction moratoriums and other tenant relief programs. "We have provided something around $50 million in relief for renters through the pandemic but have been unable to find ways to do the same for our homeowners," she said during a June 1 work session.
District 4 Council Member Greg Casar raised concerns that a 20% homestead exemption would only deepen inequity by offering the greatest benefit to the highest-value homeowners at the expense of commercial property taxpayers, who will be required to make up the difference. But he ultimately supported the measure. "Unfortunately too small a benefit to working class homeowners is still a benefit," he said last week.
Mayor Pro Tem Natasha Harper-Madison a worried that it would provide too little relief to the typical homeowner. "I think to say that this strikes me as the opposite of equitable might be an understatement," she said at the same meeting. "I don't know that $12 a month is worth it."
Community activist Julio Gonzalez Altamirano criticized the 20% homestead exemption as a "capitulation to wealth and innumeracy" in a tweet last week.
City Council is prohibited by state law from implementing a flat rate homestead exemption, even though some council members and residents would prefer it.
"This is not perfect," Adler said during the June 1 work session. "There are some people who are not getting the benefit we would want them to get or are going to get burdens we don't want them to get. But, on balance, I think this is providing really important relief to people that need that relief."
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Whether you became a home chef when the pandemic began or have always enjoyed crafting delicious meals, it’s undeniable that no home is complete without a cozy kitchen.
Take a peek at these five gems on the market now.
In the South Austin Parten community, this castle-like four-bedroom, three-and-a-half bathroom stunner puts you just minutes from Austin, Dripping Springs and other nearby communities. Stark white and black contrasting features give the interiors a clean look, while a large curving staircase serves as a centerpiece for the ground floor. The chef’s kitchen is spacious, facing the living room and multiple windows, and immediately draws the eye. Upstairs you’ll find a spa-style bathroom, game room with a wet bar and Hill Country Views.This listing is held by Adam Zell and Lexie Zell.
This hyper-modern, 3,300-square-foot Scandinavian-styled home is a paradise for natural light in Hyde Park. With four bedrooms and three-and-a-half bathrooms spread across one story, the home rests on concrete columns to protect from extreme climate conditions. Inside, you’ll find crisp, clean trim in the open-plan kitchen with built-in luxury appliances and a walk-in pantry. Lofty 12-foot ceilings and gigantic windows set the tone, with a wet bar and second living room for entertaining. When you retire to the master bedroom, enjoy a warm bath in the soaking tub or enjoy the multi-output shower.
This listing is held by Austin Stowell.
In the heart of Westlake, this stacked three-story new build is a sprawling 4,483 square feet with five bedrooms and four-and-a-half bathrooms. The home is centrally located and full of natural light, especially on the open concept first floor, which includes the kitchen, casual dining space and living area. The third floor has a bedroom and loft, perfect for the at-home worker.
This listing is held by Jen Templeton and Cheryl Albanese.
This 3,539 square foot, three-bedroom, three-and-a-half bathroom Tarrytown townhouse is newly remodeled but still holds on to its vintage charm. Bright white cabinets, a green accented island and quartzite countertops in the kitchen give the space a cheery feeling. Entering on the second floor, you’ll have to walk downstairs to get to the bedrooms, which include ensuite baths and walk-in showers. The third level bonus room is the perfect place for an at-home office.This listing is held by Cindy Fowler.
Just outside Austin in the sleepy town of Wimberley, the Backbone Ridge Ranch is one of the city’s most “iconic and pristine” properties. On nearly 50 acres of land, the house takes you into nature without getting too far from nearby cities. With 4,369 square feet, six bedrooms and six-and-a-half bathrooms, floor-to-ceiling windows effortlessly light the entire space. You’ll feel like a celebrity chef while cooking in the kitchen, even more so entertaining from the outdoor kitchen and living space. The 33,000-gallon quarried limestone pool is perfect for those hot Hill Country summers!This listing is held by Nicole Kessler.
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Sample some spirits
When: 11:30 a.m. Friday, Saturday and Sunday
Where: Desert Door, 211 Darden Hill Rd. Driftwood
What: Attend Desert Door Distillery’s first Explorer Series of 2022. Guests will be able to sample Caliber on its own or in a delicious cocktail.
Eat some chili
When: 12 p.m. Saturday
Where: Sagebrush, 5500 S. Congress Ave.
What: Enjoy great chili and great music at the 14th Annual Chili Cold Blood Chili Cook-Off. All proceeds will be donated to Health Alliance for Austin Musicians in memory of Nick Curran.
Enjoy some local art
When: 4 p.m. Saturday
Where: Neill-Cochran House Museum, 2310 San Gabriel St.
What: The Neil-Cochran House Museum will host a multi-media art exhibition by Austin artist Nell Gottlieb, titled “Land as Persona: An Artist’s Journey.” Gottlieb works in multiple media to reexamine her coming of age, white and female in the Jim Crow South.
Catch some improv comedy
When: 7 p.m. Sunday
Where: GameOn! ATX, 1515 Dungan Ln.
What: ColdTowne ThrowDowne is an improv comedy tournament between troupes that will take place in front of a live studio audience and streamed live to the world on Twitch.
Catch a Johnny Cash-style show
When: 7:30 p.m. Sunday
Where: Georgetown Palace Theatre, 810 S. Austin Ave.
What: Experience music history with a unique musical about love and faith, struggle and success, rowdiness and redemption, and the healing power of home and family set to the tune of the legendary Johnny Cash.