.png)
Rising property taxes will slow down for Elgin's older and most vulnerable residents.
On April 4, the City Council voted to effectively freeze property taxes for homestead property owners ages 65 and older. The adopted ordinance also limits ad valorem taxes for disabled individuals and will start with the 2023 tax year..
“I just feel like it's a good time for us to do it,” said Mayor Pro Tem Sue Brashar.
With the limitation, city property taxes for the elderly or disabled cannot increase unless new value is added through measures such as improvements. As such, taxes due will not go above the frozen tax amount unless value is added.
“Two pretty important pillars of our community, as I said before, (are) the over 65 citizens and the disabled veterans,” said Brashar, “and that's why I have pushed for it for so many years.”
City Manager Tom Mattis discussed the city's strategy on reaching the decision for a tax freeze instead of increasing the more commonly known homestead exemption at $15,000.
“The staff had reviewed this and made a recommendation that that we think the better choice for that is the tax freeze or limitation rather than increasing our exemption,” said Mattis.
He also compared neighboring cities and school districts and how Elgin's tax freeze will be unique.
“Typically the school districts, they'll always have a freeze because they're compelled to by state law,” said Mattis. “The city of Bastrop has had a freeze in place and the city of Smithville does too. but Bastrop does not offer an exemption and Smithville's exemption is lower than the city, so if the council were to approve this, this we would be providing the most tax relief of any city in Bastrop County.”
City revenue will be impacted by the freeze. Numbers showed scenarios taking into account tax rates, current and projected populations, and percentages related to Elgin's elderly and disabled demographic. Although the city's tax rate could be a backup plan should excessive revenue is lost, Mattis said he thought the city could afford the tax freeze.
“It's important to remember the council gets to set the tax rate every year, so if everything goes south, … if we put the freeze in place, we can't rescind it” said Mattis, “but council still has that ability every year to set the tax rate in a way that creates the revenue you want.
Brashar was confident Elgin's finances would be okay with the ordinance.
“It'll give a little tax relief to people who really need it,” she said, “ and I don't think it's going to hurt the city.”
