On June 6, 2023, The Colony City Council unanimously approved an amendment to the city’s Code of Ordinances that allows homeowners to claim an annual 1-percent or a minimum $5,000 homestead exemption on their property taxes, whichever is greater.
The exemption only applies to single-family homeowners who reside in their home in The Colony. It does not apply to commercial properties or investment/rental properties.
Mayor Richard Boyer said this vote won’t solve everyone’s tax bill but it’s another step forward in the City Council’s continued commitment to doing whatever it can to address property tax concerns in the community.
“This is the first time in the history of this city … that we’ve brought [a homestead exemption] as an agenda item,” he said, adding his gratitude to the rest of the Council for discussing and approving this measure. “We’re trying to do something in addition to the constant rate reductions we’ve done for the last 20 years.”
The approved homestead exemption is in addition to the Council’s anticipated discussion regarding an annual reduction to the city’s property tax rate. The Council determines the annual city budget during its meetings in August and September each year.
Based on current valuations of homes in The Colony, the newly passed homestead exemption would reduce the city’s total valuations by a little over $37 million, equating to $241,448 in tax savings for homeowners.
By approving the ordinance before July 1, 2023, the Denton County Central Appraisal District (DCAD) would have time to incorporate this change into their processes for next year’s property tax assessment. If you've previously been eligible and applied for homestead exemptions through DCAD, then you do not need to take any action to receive the city's new exemption.
To view your exemptions, visit DCAD online at https://www.dentoncad.com, then click the dropdown menus for Taxpayer Info/Property Search to look up your residence.