What is the purpose of a "homestead exemption"?

A homestead exemption serves the purpose of reducing the total tax on a citizen's primary residence. This financial relief is designed to provide homeowners with a way to lower their property tax burden, making housing more affordable. By exempting a portion of a home's value from taxation, the overall property tax owed on that residence decreases.

This exemption is particularly beneficial for individuals and families, as it helps ensure that the costs associated with homeownership remain manageable. In many cases, these exemptions are aimed at helping low to moderate-income homeowners, the elderly, or those with disabilities, thereby promoting stability in communities by encouraging homeownership and reducing the financial strain on residents.

The other options focus on increasing taxes or addressing secondary homes and rental properties, which do not align with the fundamental goal of the homestead exemption to promote affordability and financial relief for primary residences.