Cedar Park adopts homestead exemption


Cedar Park homeowners will receive some relief from rising property taxes in the form of a homestead exemption on their appraised home value for the city portion of their next property tax bill. 

The amount will be lower than what the Cedar Park City Council intended when it unanimously passed the city’s first-ever homestead exemption last April. 

In an effort to lessen the impact of property taxes on homeowners due to rising property values, the council had adopted a one percent homestead exemption with a minimum amount of $10,000. However, state law expressly provides a floor for the homestead exemption amount of $5,000 but does not specify that the floor cannot be increased. 

The Williamson Central Appraisal District had accepted Cedar Park’s new homestead exemption as adopted, but the Travis Central Appraisal District reduced the floor to $5,000. 

The city worked with state and county officials to seek an opinion from the Texas Attorney General, which reviewed the city’s new homestead exemption and issued an opinion that the city does not have the authority to increase the minimum above $5,000.

However, Cedar Park homeowners will still receive the city’s first-ever homestead exemption that automatically deducts at least $5,000 from the appraised value of their home for the city portion of the property tax bill.

“The council wanted to direct more property tax relief to homeowners than this, but in spite of the state’s limitations, we’re glad we at least got the city’s first-ever homestead exemption in place,” said Cedar Park Mayor Corbin Van Arsdale. “It was a council priority, and we can build on it. We also just cut our property tax rate for the sixth year in a row, to the lowest it’s been in 16 years.” 

Van Arsdale says the city will continue to explore legislative remedies and opportunities to provide Cedar Park homeowners more property tax relief in future years.