City of Katy residents will be paying a lower city tax rate for the fourth consecutive year.
On Sept. 28, the city council approved a tax rate of 0.5267 per $100 of assessed valuation for the fiscal year 2015-16 budget. This is two cents lower than the fiscal year 2014-15 rate.
Despite the lower overall tax rate, assessed property values have increased and the city will bring in 13.12 percent more revenue over last year, according to city officials.
Texas law requires cities to declare a property tax revenue increase when more funds are raised over the previous year, City Attorney Art Pertile said. An ordinance announcing higher tax revenue was read at the meeting.
“If you raise more taxes this year than you did last year, then you have to in your motion tell the people how much more that is—even if, for example, the city of Katy reduced its tax rate—a lesser rate than last year. But because of the increase in valuation, [the city] collects more tax,” he said.
Mayor Fabol Hughes said he believes the city is doing its part to keep taxes low as assessed valuation increases. City taxes fund the debt service account from which bond repayments are made as well as the city’s maintenance and operating expenditures.
“Katy has reduced [the tax rate] the last three years, but when you have growth in valuation you’re going to bring in more money,” Pertile said.
City of Katy residents will be paying a lower city tax rate for the fourth consecutive year.
On Sept. 28, the city council approved a tax rate of 0.5267 per $100 of assessed valuation for the fiscal year 2015-16 budget. This is two cents lower than the fiscal year 2014-15 rate.
Despite the lower overall tax rate, assessed property values have increased and the city will bring in 13.12 percent more revenue over last year, according to city officials.
Texas law requires cities to declare a property tax revenue increase when more funds are raised over the previous year, City Attorney Art Pertile said. An ordinance announcing higher tax revenue was read at the meeting.
“If you raise more taxes this year than you did last year, then you have to in your motion tell the people how much more that is—even if, for example, the city of Katy reduced its tax rate—a lesser rate than last year. But because of the increase in valuation, [the city] collects more tax,” he said.
Mayor Fabol Hughes said he believes the city is doing its part to keep taxes low as assessed valuation increases. City taxes fund the debt service account from which bond repayments are made as well as the city’s maintenance and operating expenditures.
“Katy has reduced [the tax rate] the last three years, but when you have growth in valuation you’re going to bring in more money,” Pertile said.
