City approves raising exemption to $100K

The Baytown Sun
By Matt Hollis, matt.hollis@baytownsun.com
May 26, 2023

Baytown city council has agreed to raise the tax exemptions for those 65 and older and disabled folks from $80,000 to $100,000. 

In May 2022, council approved a proposal to increase the exemption by $20,000 over the next three years. At the time, it went up from $60,000 to $80,000. This is the second year, so the council signed off on raising the exemption to $80,000. Victor Brownlees said in May 2022 that the goal of the city’s finance committee was to provide 100% tax relief for city taxes for people in the category of over 65 or disabled who own the average valued home in the city. 

This exemption is in addition to the 20% standard residential homestead exemption allowed by the State of Texas. For example, if a person in Baytown is 65 or over or disabled and has a home valued at $130,000, they would pay city property taxes on only $4,000 of the assessed value. 

“Last year, the finance committee brought forth a proposal to the city council to take a three-year approach to increase the exemptions for those over 65 and disabled adults,” Brownlees said at Thursday’s meeting. “You agreed to increase that exemption from $60,000 to $80,000. The proposal this year is to take that from $80,000 to $100,000.”

Brownlees said a proposal would also be given to council next year. Council’s ultimate goal is to raise the exemption up to $120,000. 

“This forthcoming budget year will increase the overall exemptions for those over 65 and with disabilities to $100,000, and that is in addition to the homestead exemption,” Brownlees said. 

Councilman Jacob Powell said when they laid out the plan for the increases in exemptions by $20,000 a year, the target was the average home value of everyone 65 and over.

“I am sure that is a moving target as values increase,” Powell said. 

Powell asked Brownlees the current average was, and Brownlees said it was about $128,000 right now. 

Councilwoman Sarah Graham asked about how the exemptions work on top of the current homestead exemptions. 

“They get the 20% homestead exemption first and then the additional $100,000 is added to that,” Brownlees said. 

The item passed unanimously. 

“I certainly believe we are on the right path,” Mayor Brandon Capetillo said.