Get Involved Now! Local Governments to Adopt New Property Tax Rates

August 16, 2023
Andrew McVeigh
Local Budgets, Local Government, Property Tax, Spending, Tax Rate

Are you a homeowner? A small business owner? Farmer or rancher? Texas property owner of any kind? If you are, then this information is for you!

Tax Rates

Every year, local governments in Texas set a budget for their operations for the upcoming budget cycle. Part of that process is setting the property tax “rate,” in order to fund their budget expenses. 

Local taxing entities, such as schools, cities, and counties will adopt this tax rate, which will be multiplied by every $100 dollars of your property’s appraised value (minus exemptions) for that year, which will determine the total taxes owed. 

Local taxing entities typically propose and then adopt their budgets and tax rates in the months of August and September.  The goal of all local governments should be to adopt the “No New Revenue” Rate.

What is the No New Revenue Rate?

The No New Revenue Rate (NNR) is basically a property tax rate that would allow local governments to collect the same amount of tax revenue as the previous year (if applied to the same properties that were taxed in the previous year). 

Calculating this rate is based on a formula provided by the Texas Comptroller, which makes the assumption that if property values increase (they almost always do), then the tax rates should decrease to collect the same tax revenue. 

Adopting the NNR Rate is an essential component to your property taxes not increasing. That should be the minimum. Ideally, local governments should adopt a rate below NNR, which would provide actual property tax relief.

Get Involved Now!

Citizens must be engaged at the local level as much, if not more than they are engaged at the federal and State level. As shown above, your local governments have immense power over your property tax bill every year. 

When setting their budgets and tax rates, local governments are supposed to hold public hearings for citizens to voice their concerns and give feedback. These public meetings are ideal opportunities for taxpayers to get involved and insist that tax rates not exceed the NNR Rate.

Notices of these public meetings are typically posted on the taxing entity’s website, or in your local paper. 

Now is the time for taxpayers to get involved at the local level and make their voices heard: 

No more tax increases, or we’ll vote you out!”

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