City of Houston officials to consider different tax rate options

However, Houston Mayor John Whitmire said he has little interest in raising property taxes until all other options to increase revenue or cut costs are explored. Some council members disagree and are advocating for raising the property tax rate to cover the cost of the disaster without cutting expenditures.

What are the options?

The divide has resulted in two different tax rate options that will be brought to the table during the Oct. 9 regular City Council session, according to an agenda packet for the meeting.

Whitmire and Dubowksi are pushing to keep the tax rate the same as last year at $0.51919 per $100 valuation. On the other hand, members of the council's Proposition A Committee are proposing a rate of $0.5516 per $100 valuation, a 3.2 cent increase and one of the tax rate options presented by Dubowski in September.

Council members who submitted the alternate proposal include Letitia Plummer, Joaquin Martinez, Mario Castillo and Sallie Alcorn, who has been a staunch supporter of raising the tax rate in recent discussions.

According to the letter, council members chose the proposed rate because they feel it is fiscally responsible. If adopted, the rate would:

• Require no expenditure cuts in FY 2024-25
• Allow the city to raise enough revenue to cover the estimated local share of disaster recovery costs

• Create a $46 million shortfall
• Require the city to cut $86 million in expenditures to cover the shortfall and the local cost of the disasters

The council will need to decide Oct. 9 on which tax rate proposal will move forward before the public hearing is held at 9 a.m. Oct. 16. Council has until Oct. 28 to adopt a new rate.