Many city, county, and school district officials are right now deciding where to set tax rates for the next fiscal year. In some cases, these local decisions will push property taxes higher, creating new challenges for families struggling with affordability.
Given the very real prospect of tax hikes on the horizon, now is the time for Texans to learn what their local elected officials are doing and get involved in the decision-making process—while there’s still time to push for taxpayer-friendly alternatives.
To better illustrate what may be around the bend, let’s consider the city of Early, a small town located in west-central Texas.
According to its latest Notice of Public Hearing on Tax Increase, Early’s city councilmembers have proposed a total tax rate of $0.66 per $100 of value, which is a 10.13% increase over the previous year. With home values expected to climb by 7.69%, the act of pairing a much higher tax rate with rising property values will result in much higher taxes.
If officials adopt the proposed rate, then the typical homeowner’s annual tax bill will rise from $1,150 last year to $1,364 next year. That is a one-year tax hike of $214 per household or 18.6%.
Of course, there is no requirement that Early officials adopt the proposed tax rate. In fact, they have the discretion to choose a better, friendlier option in the form of the no-new-revenue (NNR) tax rate. The NNR rate is the tax rate that would effectively hold tax receipts constant and “giv[e] homeowners and businesses a chance to catch their breath.”
For residents interested in seeing the city adopt the NNR tax rate, there is an upcoming public meeting where officials will solicit public input and give taxpayers a forum to voice their concerns. Per its public notice, the details are as follows: