CCAD officials called the mistake a “glitch,” Budget Manager Bob Clymire said in a presentation during a June 16 Richardson City Council meeting.
The details
The error came from a tax abatement for Texas Instruments wafer fabrication facility, where semiconductors and other electronics are made. Council passed the current budget before the mistake was found. Once the tax abatement was applied, it removed $592 million of taxable value from Richardson’s tax roll, Clymire said, resulting in a $3.2 million loss in property tax revenue.
“We don't have that many abatements of this magnitude,” Magner said, adding the city was aware of the abatement; however, it is CCAD’s responsibility to apply it to the tax rolls.
Despite the loss of property tax revenue, higher-than-expected revenues in other areas, such as sales tax, will help to mitigate the loss.
What else
Additionally, CCAD determined the Northside student housing apartments to be part of the University of Texas at Dallas, resulting in a 100% tax exemption and a $1.2 million loss in property taxes.
Clymire also said the number of cases challenging property values is increasing, with over 300 cases currently in dispute, totaling over $3 billion.
Clymire anticipates property tax revenue for the next fiscal year will be lower than current adopted levels due to these ongoing issues.
