The City of Magnolia adopted a lower property tax rate for the 2012–13 fiscal year at a meeting Aug. 29. The rate, which was $0.4814 per $100 valuation in 2011, was lowered to $0.4786.
Despite lowering the rate for property within city limits, total tax revenue for the city will increase by more than 5 percent due to an increase in taxable value added to the tax roll, according to Magnolia Mayor Todd Kana. An increase in taxable value is typically triggered by two changes: higher home values placed by the Montgomery County Appraisal District or an increase in overall property on the city's tax roll.
Kana said he has not seen the specifics from the appraisal districts on what triggered this increase, but suspects the annexation of several tracts of land into city limits earlier this year had an effect.
Kana estimated that the increase in taxable value will result in under $50,000 in additional revenue.
"In the grand scheme of things, it's not a huge amount," he said. "It will most likely be absorbed into our everyday operations."
The city conducted two public hearings in August, which are required by Montgomery County whenever the tax rate changes.
"Our aim is to keep the taxes low for our residents without compromising the city's ability to raise the money it needs to operate," Kana said. "I think this is a plan that makes both sides happy."