Due to the current bond elections for the San Saba ISD and the Richland Springs ISD, there have been questions about the Homestead Exemptions and how they affect the values on the home that qualifies for this exemption.

WHAT IS A HOMESTEAD EXEMPTION?

A homestead exemption lowers the property taxes on your home by lowering its taxable value. Anyone who owns a home on January 1st and uses it as a primary residence on that date is entitled to a $15,000 decrease in taxable value on school taxes. If you qualify for disability or if you're 65 years old or older, you are entitled to an additional $10,000 taxable value exemption on your home. Another advantage of the 65 or older or disabled exemption is that this exemption locks in a "ceiling" on your school taxes at what they are the year you qualify for this exemption. This "ceiling" will change only if you add a major addition of value to your home. You may get your homestead exemption application at the San Saba County Appraisal District.

The homestead exemption DOES NOT apply to agricultural, business or any other property.

WHAT DOES A HOMESTEAD CAP DO TO MY VALUE?

With a homestead exemption, your value increase on your homestead cannot exceed 10% per year. Any value increase over 10% will be added the next year.

HOW DOES A BOND ELECTION AFFECT MY PROPERTY?

If the bond election passes, your property will be taxed at the tax rate the school proposed in the election. If the election does not pass, the school tax rate will be the same as it was the previous year.

EXAMPLE OF A HOMESTEAD EXEMPTION FOR SAN SABA ISD:

PREVIOUS YEAR TAX RATE:

***$50,000 - $15,000 EXEMPTION =$ 35,000 x 1.13 : 100 = $395.50

PROPOSED 2011 TAX RATE:

***$50,000 - $15,000 EXEMPTION =$ 35,000 x 1.364 : 100 = $477.40

EXAMPLE OF A HOMESTEAD EXEMPTION FOR RICHLAND SPRINGS ISD:

PREVIOUS YEAR TAX RATE:

***$50,000 - $15,000 EXEMPTION =$ 35,000 x 1.17 : 100 = $409.50

PROPOSED 2011 TAX RATE:

***$50,000 - $15,000 EXEMPTION =$ 35,000 x 1.50 : 100 = $525.00

HOW DOES THE PROPOSED BOND ELECTION TAX RATE AFFECT MY OVER 65 HOMESTEAD?

If you qualify for the Over 65 Homestead Exemption or Disability Exemption, your school taxes WILL NOT CHANGE.

This property will be taxed at full taxable value with the tax rate for that year.

HOW DOES THIS AFFECT THE TAXATION ON MY AGRICULTURAL LAND, OTHER IMPROVEMENTS OR BUSINESS BUILDINGS AND PERSONAL PROPERTY?