Untitled Texas Attorney General Opinion: KP-0507

Summary

The Texas Attorney General concludes that Tax Code subsection 11.13(n-1) prohibits the Village of Salado from reducing or repealing its local option homestead exemption through the 2027 tax year. The prohibition applies even if voters approve a reduction in the Village’s ad valorem tax rate. Accordingly, the Village may not reduce the exemption for fiscal year 2025–2026 below the amount adopted for the 2022 tax year.

Holdings

1. Texas Tax Code section 11.13(n-1) prohibits the governing body of a municipality, school district, or county from reducing or repealing a local option homestead exemption from the amount adopted for the 2022 tax year through the 2027 tax year.
2. Voter approval of a reduction in the Village's ad valorem tax rate does not permit the Village's governing body to reduce the local option homestead exemption protected by section 11.13(n-1).

Questions Presented

1. Whether Texas Tax Code section 11.13(n-1) permits a municipality to reduce or repeal a local option homestead exemption adopted for the 2022 tax year during the period covered by the statute.
2. Whether voter approval of a reduction in the municipality's ad valorem tax rate creates an exception to section 11.13(n-1)'s prohibition on reducing the exemption.

Disposition

other