During the McKinney City Council meeting on June 17, 2025, a significant discussion centered on the potential increase of the homestead exemption for residents aged 65 and older, as well as for disabled individuals. Chief Financial Officer Mark Holloway presented the current property tax exemptions and emphasized the urgency of making any changes before the July 1 deadline for submission to the Collin County appraisal district.

Holloway explained that the existing exemption for seniors and the disabled is set at $90,000, which reduces the taxable value of their homes and translates to an average tax savings of approximately $374 per eligible homeowner. He noted that any increase in this exemption would decrease the tax burden on these residents but would shift some of that financial responsibility to non-eligible homeowners.

The council also discussed the implications of a proposed state-level bill that would increase homestead exemptions for seniors, potentially providing an additional $200,000 in relief. However, some council members expressed concerns about the impact of such changes on the city's budget and the need for revenue to support ongoing city services and infrastructure development.

Councilwoman Feltes highlighted the complexity of the tax system, noting that while the state may provide some relief, the burden often shifts to renters and younger families trying to enter the housing market. The council ultimately leaned towards maintaining the current exemption levels, citing the need to balance tax relief with the city's operational needs.

As the budget season approaches, the council will continue to evaluate the potential changes to property tax exemptions, with the aim of ensuring that all residents, particularly seniors and the disabled, are supported while also maintaining the city's financial health.