Legislature proposes increase to homestead exemption boosting savings for property owners

The El Paso Independent School District's Board of Trustees meeting on March 24, 2025, spotlighted the significant impact of the newly enacted homestead exemption, which has increased to $100,000 for property owners. This legislative change, introduced in the last session, is projected to provide substantial tax relief, with estimates showing a reduction in school district taxes from $1,931 to approximately $1,161 for a property valued at $250,000.

Trustees discussed the implications of this exemption, emphasizing its potential to ease the financial burden on homeowners. However, they also raised concerns about the ongoing legislative proposal to further increase the homestead exemption to $140,000. While this could enhance savings for property owners, it poses a risk to school funding, as the district has yet to receive a clear formula to mitigate negative impacts on its budget.

Trustee Guida pointed out that the previous homestead exemption was only $40,000, highlighting that the current savings calculations must consider this historical context. The board is closely monitoring these developments, as any changes could significantly affect both taxpayers and the district's financial health moving forward.