What's happening?
Jones is suggesting a tax rate of $0.51919 per $100 of taxable value, lower than the existing rate of $0.53364 per $100 of value.
The tax rate is made up of the city's maintenance and operations—or M&O rate—and interest and sinking fund, or I&S rate. The suggested M&O rate is $0.388878 per $100 of taxable value and the suggested I&S rate is $0.130312 per $100 of taxable value.
Although the proposed tax rate is lower than the current year's rate, Jones said it is expected to increase the city’s property tax revenue for the current fiscal year "in an amount greater than 5% more than the ad valorem property tax revenues collected during the immediately preceding fiscal year."
Explained
- No-new-revenue tax rate: a rate that raises an equal amount of property tax revenue as the previous year, not counting new property added to the tax roll
- Voter-approval tax rate: a tax rate just under the rate that would require voter approval under state law
- Ad valorem tax: tax based on the assessed value of an item, such as property
- Maintenance and operations tax rate: portion of the tax rate used to provide funds for maintenance and operations
- Interest and sinking tax rate: portion of the tax rate used for payment of debts
The no-new-revenue tax rate is $0.484574 per $100 of taxable value. The voter-approval tax rate is $0.523479 per $100 of taxable value. According to the agenda item, these numbers are based on certified initial roll information from the Harris Central Appraisal District, Fort Bend Central Appraisal District and the Montgomery Central Appraisal District.
Quote of note
"It's lower than where we are, but not lower than the no-new [revenue tax rate]," Houston Mayor Sylvester Turner said at the Sept. 13 meeting. "We'll have a lot more conversations on that."
Stay tuned
The public hearing for the city's new tax rate will take place at 9 a.m. Sept 27 in the Anna Russell Chamber City Hall, 901 Bagby St., Houston, and will be streamed on HTV.
