Texas AG Releases Opinion on Authority to Reduce Local Option Homestead Exemption

The Texas Attorney General (AG) released an opinion on whether the Village of Salado could reduce its local option homestead exemption. Village officials were concerned that the exemption combined with an ad valorem tax rate reduction could leave the Village unable to fund essential municipal services including the provision of police protection. The AG opined that subsection 11.13(n-1) of the Tax Code prohibits the governing body of a school district, municipality, or county from repealing or reducing the local option homestead exemption from the amount that was adopted for the 2022 tax year through the 2027 tax year. Thus, the ...