City Council approved a proposed tax rate of $0.395 per $100 in taxable value for fiscal year 2021-22, matching the rate for FY2020-21. The rate was proposed Aug. 17 during a presentation by Aaron Rector, the city’s director of administrative services and finance.
Rector explained that the rate, when paired with the city’s increased homestead exemption to 20% from 14%, will amount to an average tax bill of $1,374.20 for the average taxable home in Keller—valued at $347,898. The average tax bill with the 14% homestead exemption in FY2020-21 was $1,389.68, making for an average savings of $15.48 per homeowner for the fiscal year.
“We’re doing official tax relief this year,” Rector said.
The rate also falls below the no-new-revenue rate and therefore will not require a public hearing, but will have to be posted.
The proposed max tax rate can officially be ratified when City Council approves the FY2021-22 budget, which is planned for Sept. 21. Rector explained that because at least $1 will be added to the levy, which he said will come from new value, a tax revenue increase will have to be ratified in the budget.
"I can't stress enough—even though we're under the no-new-revenue rate and providing tax relief to the citizens, we have to ratify that [levy increase]," Rector said.