What you need to know
At their Aug. 25 meeting, Plano City Council members discussed the proposed property tax rate for fiscal year 2025-26, with six council members expressing support for the highest rate allowed without triggering an election.
The change from the current $0.4176 rate to $0.4406 would add approximately $248 on the average homeowner’s tax bill, according to city documents.
Most council members cited concerns about the city's ability to increase property tax rates in the future, citing ongoing state legislative uncertainty. Current state law caps annual property tax revenue growth for cities at 3.5% and requires an election for higher rates.
On Aug. 19, the Texas Senate passed a bill that would reduce that cap to 2.5% and require voter approval for increases above that level.
However, the Texas House approved amendments Aug. 25 to Senate Bill 10 that would lower the cap to 1%, while allowing exceptions for public safety spending.
Both proposals build on a state law enacted in 2019, which lowered the cap from 8% to 3.5%.
What they’re saying
Mayor Pro Tem Maria Tu said the city needs to ensure it has funds to cover surprise expenses and “rainy days,” especially after years of hiring and salary freezes.
“If we don’t max it this time, we are never going to have this buffer money ever again because the Legislature basically [has] cut off our arms and our legs,” Tu said. “At this point, if we want any type of increase in our tax base, we’re not going to have it, and that is really scary.”
Council member Rick Horne said Plano has kept the same property tax rate for the past few years, and that even with the increase, the city’s rate would remain below some neighboring cities.
“We are one tornado away from having a catastrophic event [that hurts] us critically from a budget perspective,” Horne said. “By tomorrow morning, we’re not sure what’s going to come out [of the Legislature] with regards to voter approved rates in the future.”
Another perspective
Council member Vidal Quintanilla opposed adopting the $0.4406 ceiling, saying he would prefer a lower rate, such as $0.4346, due to concerns about the increasing cost of living.
“I have in the back of my mind [that] cost of living is going up, food is going up, groceries [are] going up for everyday citizens,” he said. “I’m [keeping] in mind every resident across Plano, not necessarily the ones that can or can’t afford their property taxes. It’s just a bigger pill for me to swallow at this time.”
Looking ahead
Plano City Council is scheduled to vote on the proposed 2025-26 fiscal year budget and the new property tax rate at its Sept. 8 meeting.
