The Colony to Consider Homestead Exemption Ordinance Change at June 16 Council Meeting

THE COLONY, Texas. The Colony City Council's June 16, 2026 regular agenda includes item 5.4, an ordinance amending Chapter 8, Section 8-15 of the city code, entitled "Homestead Exemption." The agenda item describes the proposed change as amending the current homestead exemption.

How Texas homestead exemptions work

Under the Texas Property Tax Code, a homestead exemption removes a portion of a primary residence's appraised value from local property taxation. The state mandates a $100,000 general homestead exemption against school district maintenance and operations taxes, set by constitutional amendment approved in November 2023. Cities, counties, and special districts are authorized but not required to adopt their own local homestead exemption.

When a city offers a local homestead exemption, it can be a flat dollar amount or a percentage of appraised value, subject to a $5,000 minimum if percentage-based. The exemption applies to the taxable value used to calculate the city's portion of the property tax bill. Increasing the exemption reduces taxable value, which means less revenue per home for the city unless offset by tax rate increases or growth in the tax base.

Why these decisions are politically sensitive

Homestead exemption changes have an immediate, visible impact on property tax bills for owner-occupants. Renters and commercial property owners do not benefit directly. Increasing the exemption is popular but shifts the tax burden, since the city's operating budget still has to be funded. Holding the line preserves revenue capacity for services like public safety, parks, and street maintenance but means homesteads pay more as appraisals rise.

The agenda item description does not specify whether the proposed amendment increases, decreases, or restructures the exemption. Members of the public who want the specific numbers should consult the staff report and ordinance text in the meeting packet available through The Colony's Granicus portal.

Sources

The Colony City Council Regular Session agenda, June 16, 2026, item 5.4 (AgendaViewer; Agenda packet PDF). Texas Property Tax Code, Chapter 11 (Exemptions).