Properties in the Dallas County portion of Richardson have an estimated total value of $12.03 billion, Finance Director Keith Dagen told City Council on May 24.
Collin County values represent $8.29 billion of the city’s tax roll, Dagen said. City staff expects the combined total of $20.32 billion to fall by about $684 million once residents protest their values.
Property value growth in the city’s three tax increment finance zones account for about $2.17 billion of the total tax roll, which means the city’s taxable value is reduced to $17.46 billion, Dagen said.
Increased revenue from property taxes in these zones cannot be used for general spending or debt service purposes, Dagan explained, as it is used to fund infrastructure and development.
“So values are slightly up [this year] compared to where we think they were a year ago for general and debt service purposes,” Dagan said.
The city has seen property values increase by 6% on average over the past decade. This year’s increase of 0.95%, after taking into account revenue reserved for tax increment finance zones, is the lowest increase since 2012, when values increased by 0.7%, Dagen said. The last time Richardson saw a decrease in its taxable value was 2011, he added.
All taxable property is appraised as of Jan. 1, which means this year’s estimated values will factor in any COVID-19-related value affects that may have occurred, Dagen said.
Appraisal review board hearings will be conducted by phone in both counties, Dagen said. However, the Dallas County Appraisal District will conduct in-person hearings upon request, while the Collin County Appraisal District will do them on a case-by-case basis, he explained.
Both districts advised they expect to meet the state-mandated July 25 deadline to provide a certified roll to taxing entities, Dagen said.
Based on Dugan’s presentation, City Manager Dan Johnson estimated the appraisal numbers are unlikely to put any “pressure” on Richardson’s current property tax rate of $0.62516 per $100 property valuation.
“If there's any opportunity to lower the tax rate, I'd like to consider that,” Mayor Paul Voelker said. “I know we'll sharpen the pencils over the next several months, and I look forward to doing that.”
Richardson’s budget and tax rate are scheduled for adoption Aug. 23.