Colleyville City Council approves 14% homestead property tax exemption increase

In the heart of Colleyville, city officials gathered under the warm glow of the council chamber lights to discuss pivotal changes that could impact residents' wallets and community services. The City Council convened on June 3, 2025, for a second reading of an ordinance aimed at increasing the residential homestead property tax exemption from 7% to 14%. This move, presented by Assistant City Manager Mark Wood, is designed to provide financial relief to homeowners while simultaneously addressing the city's need for additional property tax revenue.

The proposed increase in the homestead exemption is part of a broader strategy to balance the city's budget without placing an undue burden on residents. Wood explained that the city had previously implemented a 7% exemption to offset a property tax increase, which was necessary to fund essential public safety purchases, including a new fire truck. This year, the council aims to replicate that approach, raising the exemption while also proposing a 7% increase in property tax revenue to cover ongoing expenses related to public safety and other city services.

The council's decision to increase the exemption is particularly significant as it aligns Colleyville more closely with neighboring cities, most of which offer the maximum allowable exemption of 20%. By raising the exemption to 14%, the city hopes to generate approximately $1 million in additional revenue, primarily from non-homesteaded properties such as businesses and rental units, while keeping the average homeowner's tax burden relatively flat.

During the meeting, the council opened the floor for public comment, but no residents chose to speak, indicating a possible consensus or lack of concern regarding the proposed changes. Following the public hearing, the council unanimously approved the ordinance, signaling a commitment to maintaining the city's high standards of public safety and community services without overburdening its residents.

As the council prepares for further budget discussions later this summer, the implications of this decision will be closely watched by homeowners and business owners alike. The approved exemption will automatically reflect on residents' tax bills for the upcoming year, providing a seamless transition into the new fiscal strategy. With this ordinance, Colleyville continues to navigate the delicate balance of fiscal responsibility and community support, ensuring that its residents can enjoy the benefits of living in one of the safest cities in Texas.