Tax commissioner outlines new tiered homestead exemptions under House Bill 758

Tax Commissioner Sylvia told the board on March 2 that House Bill 758, signed into law on May 13, 2025, establishes a tiered homestead exemption for the school portion of ad valorem taxes for homeowners age 65 and older.

Under the law as explained by Sylvia, the school portion provides three exemption tiers depending on the homeowner’s income after accounting for a state Social Security‑income cap that is updated annually. The tiers are: 100% of assessed value (for lower incomes up to a specified threshold), 50% for a mid tier and 25% for higher incomes above that threshold. The tax commissioner’s office said the exemption will be available beginning tax year 2026 and that the income used for the tier calculation includes Social Security and retirement income for both spouses and other forms of income unless specifically excluded by state guidance.

Sylvia said the county has already had more than 1,100 people sign up or express interest in the exemption and described the application process: residents must submit proof of prior‑year income (W‑2s or 1099s preferred) and apply by the county’s published deadlines so the exemption can be reflected in tax notices and the appeal period. She clarified interactions with existing senior exemptions and local “freeze” provisions and explained that certain property improvements or detached structures over five acres may affect eligibility.

Commissioners asked questions about the income definition and the interaction with other local exemptions; staff said the state will provide official guidance and annual figures that the tax office will use for calculations. Staff advised residents to bring documentation to the tax office and noted that appeals periods and state rule changes could affect timing and implementation.

What’s next: County staff will post application materials and continue outreach; residents are advised to contact the tax office with documentation to determine eligibility.