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New homestead credit and deduction phase-in expected to lower districts’ net assessed values
Summary
The consultant said a 10% homestead credit (capped at $300) and a multi-year phase-out of the fixed deduction will shrink net assessed values for many districts, changing who benefits by home-value band.
During his presentation, Matt Parkinson explained how the homestead credit and deduction formula work and why they matter for Indian Creek. "It was the very last piece on your property tax bill. It was 10% of your property tax bill capped at $300," he said, and noted that the fixed deduction in 2026 is $48,000 while the supplemental percentage was 48% for the year.
Parkinson demonstrated that higher-value homes will see relatively larger percentage-based deductions as the fixed component phases out through 2031, narrowing the gap between high- and low-value properties. He cautioned the board that these mechanics will tend to reduce net assessed values overall, a structural shift the district should incorporate into long-range plans.
