The maximum tax rate Dallas property owners can expect to pay for fiscal year 2023-24 is $0.7393 per $100 valuation. The rate is a little more than half a cent lower than the FY 2022-23 rate, which is $0.7458 per $100 valuation.

What happened

Dallas City Council voted Aug. 23 to approve the maximum tax rate for the upcoming fiscal year after some council members, including Mayor Eric Johnson, tried unsuccessfully to adopt a lower rate.

The approved rate is only the maximum that could be included in the FY 2023-24 budget—City Council will vote on the final rate and approve the budget in September. In early August, City Manager T.C. Broadnax proposed a $4.63 billion city budget for FY 2023-24, with a general fund budget of $1.84 billion.

Those in favor

Council Member Paula Blackmon, who represents Lakewood and part of Lake Highlands, said approving a higher maximum tax rate than some other City Council members wanted will allow the city to re-evaluate budget priorities ahead of when they adopt the final rate.

While she did vote in favor of the adopted maximum rate, she said she hopes to be able to adopt a final tax rate for FY 2023-24 that is 1.5-2 cents lower than FY 2022-23.

“To me, this is just an exercise—the real work begins after today,” Blackmon said at the Aug. 23. meeting. “I ask my colleagues to roll up our sleeves, and let’s really look for hard dollars to cut.”

Those opposed

Council Member Cara Mendelsohn, who represents north Dallas, unsuccessfully pushed for a maximum rate of $0.683821 per $100 valuation. Certified property value is expected to grow significantly, she reasoned, so a lower city tax rate would help give property owners a break.

“We say, ‘We’re lowering your tax rate,’ and then we take a bow. But the residents get a higher tax bill because their property value has increased significantly,” Mendelsohn said at the meeting.

Of the 15 council members, including Johnson, 10 voted in favor with one member absent during the vote. Those who voted against the rate are:
  • Johnson
  • Mendelsohn
  • Kathy Stewart, who represents most of Lake Highlands
  • Gay Donnell Willis, who represents northwest Dallas
In case you missed it

On Aug. 18, Johnson requested Broadnax revise his original city budget proposal—which included the recommendation of $0.7393 per $100 valuation—to provide additional property tax relief.

Broadnax is instructed to submit a new proposal no later than Sept. 1 at 5 p.m., and City Council will discuss it at a Sept. 6 workshop. They will host a hearing to receive public input on a proposed tax rate Sept. 20 at City Hall.