10/29/08

English (US)   Cities' Tax Rates Now on the Books  -  Categories: Opinions, Taxes & Budget  -  @ 11:56:37 pm

All Texas cities have to adapt their budgets in September so we now know which ones kept their tax rate the same, raised it, or even lowered it. Just as businesses compete against each other for customers, cities must compete to attract and hold businesses and residents.
 
During the last budget proposals, the City Council raised the local tax rate 1.1¢ to 69.96¢/$100 valuation. For residents with a homestead exemption, here is how we compare to other Metroplex cities:

Residential property taxes on $100,000 for Metroplex cities over 25,000, including any homestead reduction
2008 Metroplex Taxes - Residential

We're not the highest but we are higher than most comparable large cities and we're higher than most of our neighboring cities. Notable exceptions are Wylie and Rowlett. Wylie took a very large leap this year and I'm not familiar with their reasons for the hefty increase but I can't imagine that it bodes well. Rowlett has worked hard the last couple years to contain their expenses to keep their tax burden from growing. Part of the braking came from a citizenry that said enough is enough and part came from new leadership at City Hall, particularly Mayor John Harper.
 
Homeowners can receive an 8% homestead exemption in Garland. Some cities are at the maximum: 20%. Of course, businesses and others do not get the homestead exemption and pay the full 69.96¢. The picture gets bleaker as we try to attract businesses and investment that could just as easily go to Richardson or Plano or other Metroplex cities:

Business property taxes
2008 Metroplex Taxes - Business

I would like to have the nicer parks, better streets and alleys, and new services that more disposable revenue could bring but (1) we can't afford it and (2) non-restraint now would rob us of future opportunities.
 
On Nov 17 the Council will meet for our Fall Budget Retreat. Staff will present us with a forecast of our financial situation for the next budget year. Home prices have been falling and foreclosures have been increasing. Local business sales and sales tax collections are down. It doesn't take a genius to see where we are headed: a tighter budget than we saw this year.
 
I can imagine there were some that did not want to hear it but I stressed numerous times during this year's budget talks that we weren't having to make hard decisions yet — the hard decisions would be this year. In a couple weeks we'll get a better idea how hard.
 


Charts show cities over 25,000 in Dallas, Tarrant, Collin, and Rockwall Counties.
Cities with an asterisk are exceptions, either smaller than 25,000 or outside those four counties.
Data was obtained through the appraisal district for the respective county or through that city's website.


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