HEB ISD finance staff report certified property values; homestead-exemption change affects comparison to prior year

HEB ISD finance staff reported certified property values provided by the Tarrant Appraisal District for the 2025 tax year and explained how changes in the homestead exemption create an apples-to-oranges comparison with 2024 values. Assistant Superintendent/CFO (presenter) explained that the state instructed local entities to use a $140,000 homestead exemption for 2025 values ahead of a voter election in November; 2024 figures were based on a $100,000 exemption. Under the state’s direction to use the $140,000 exemption for the current calculations, the district’s estimated net taxable value shows a 3.19% decrease compared with the prior year using the differing exemption bases. The presenter demonstrated that if the 2024 values were recalculated at the same $100,000 exemption for direct comparison, the district would instead show a 5.15% increase in net taxable value. The presenter said that, because the appraisal district did not provide two parallel sets of calculations this cycle, the district will not see the sort of automatic tax-rate compression observed in prior years. No board action was required at the meeting; the item was informational. Discussion versus decision: The item was informational; there was no vote. Board members asked clarifying questions about long-term value trends and historical comparisons.