San Antonio homeowners who live in their homes will likely see a reduction in their property tax bills from the city later this year, as City Council is slated to vote on a proposed 20% homestead exemption and a slight reduction in the city’s property tax rate.

A homestead exemption allows homeowners to reduce their homes’ taxable value. Some additional exemptions are available only to seniors or disabled people.

However, the city’s portion is less than a fifth of the total property tax bill owners pay. Other taxing entities such as school districts don’t offer the same exemptions or tax rates.

That means homeowners may still see an overall increase in their total bill, especially as property values increase.

If a homestead is valued at $300,000, which is roughly the median home value in Bexar County, that home’s owner will see an estimated $82 in savings on the city portion of their next tax bill, city officials said Wednesday as they briefed Council members on the proposed changes to the homestead and tax rate.

The city forewent about $95 million in property tax revenue in 2023 through exemptions and tax freezes this year, said Troy Elliot, the city’s deputy chief financial officer. If the 20% homestead is approved, the city will forego an estimated $144 million next year.

Meanwhile, state leaders are at a stalemate over how to approach a state property tax cut. The state House and Senate have proposed competing bills but “remain significantly apart,” said Sally Basurto, director of government affairs.

Gov. Greg Abbott could call another special session if a bill isn’t passed during the current one, but an agreement needs to be made by August in order to put the proposed cut before voters in November, Basurto said. “They are on a short timeline.”

Texas limits the types of exemptions local governments can offer. Efforts to expand that list, such as adding an exemption for legacy homeowners, were shot down in the legislature.

At the same time, a 2019 Texas law caps the amount of revenue local governments can collect from property taxes. That amount must not exceed 3.5% growth from the previous year, or the city could be forced to hold an election that would allow taxpayers to vote on lowering the tax rate.

Those dynamics leave San Antonio with few options to direct property tax relief toward the property owners they believe need it the most.

“I do think this is the time for us to be able to max out our homestead exemption,” Mayor Ron Nirenberg said. “We have very limited tools to be able to target tax relief.”

Last year the city increased its homestead exemption to 10% of the assessed value of their home, stopping short of the state maximum 20%, which most other major cities had already hit. Instead, the city offered a greater reduction in the property tax rate, which leaders at the time said would offer property tax relief to businesses and multi-property owners, savings they hoped would be passed along to consumers and renters.

The current property tax rate is about $0.54161 per $100.The 2024 rate under the proposal would decrease slightly, to $0.54041.

Last year San Antonio also increased the amount that people age 65 and older claiming a homestead exemption can reduce from the assessed value of their home, from $65,000 to $85,000. Ditto for people who are fully disabled and receive benefits under Federal Old-Age, Survivors and Disability Insurance, from $12,500 to $85,000.

There are no maximum caps for elderly and disabled exemptions, but city staff is not recommending increasing those amounts this year, Walsh told reporters.

The homestead exemption is more targeted and all homeowners who live in their homes will receive it regardless of age or ability, he said.

If the 20% exemption is approved by council, the Bexar County Tax Assessor-Collector can include the information on property tax bills when they go out in October.

Payment of the tax bill is not due until January 31, and the property tax rate will continue to be adjusted until the city receives the certified tax roll from the Bexar County Appraisal District on July 25.

All of the city’s exemptions require that the homeowner have a homestead exemption application on file with the Bexar County Tax Assessor-Collector. To get the basic homestead exemption, homeowners need to fill out this form and submit it to the county tax office. If a homeowner has already filed an application at their homestead’s address, they do not need to resubmit the form each year.

Potential applicants can call the tax assessor-collector’s office or come by in person if they need help filling out the application form.

Once a homestead exemption is approved, it applies to all taxing entities the home is subject to, including the state, county, city, school districts, hospital district and others.

The deadline to file one was April 30. If a new applicant is approved for an exemption that they were qualified for in previous years, they’ll receive the savings retroactively for up to two years.