During a recent council meeting, officials discussed significant changes to property tax rates and exemptions in the town of Prosper. The council announced an increase in the homestead exemption rate from 15% to 17.5%, aimed at providing residents with greater tax relief. This adjustment is part of a broader strategy to enhance infrastructure funding through a unique \"pay as you go\" funding model, which allocates a portion of the maintenance and operations (M&O) rate to capital projects.

The proposed tax rate reflects a decrease from the previous year, dropping from 43 cents to an equivalent of 41.6 cents per homestead property. This reduction is attributed to both the increased homestead exemption and a half-cent decrease in the overall tax rate. Council members emphasized that the town of Prosper is not alone in levying property taxes, with a breakdown showing that only 25 cents of every dollar paid in property taxes goes to the town for Collin County residents, and 26 cents for those in Denton County.

The meeting also highlighted the town's commitment to maintaining stable tax rates, with a history of keeping rates at $0.52 for the past decade, and a recent decrease to $0.51. Council members reiterated their promise to residents for stable tax rates amid rising property values, underscoring the town's proactive approach to fiscal management and community support. The public hearing concluded without any comments from attendees, allowing the council to move forward with discussions on the proposed changes.