City Council sets maximum proposed tax rate for FY23
The Round Rock City Council voted Thursday, Aug. 11, to set a maximum proposed property tax rate of 34.2 cents per $100 of valuation for Fiscal Year 2022-2023 (FY23).
Although a much lower tax rate than in previous years, the proposed rate is higher than the “no new revenue” rate of 32.6 cents, which would raise the same amount of revenue as last year on existing property based on this year’s property valuations. The extra 1.6 cents is needed to pay for the final $21.7 million in bonds for the new Library approved by voters in 2013, as well as increased resources for public safety, said Susan Morgan, Chief Financial Officer for the City.
At the proposed rate, the owner of a median taxable value home of $369,169 would, on average, pay $1,263 next year in City taxes, which is an increase of $5 per month over the current rate. However, many homeowners with homestead exemptions, which cap taxable values from rising above 10% each year, may actually see a decrease in taxes paid to the City this year due to commercial and non-homesteaded properties paying a significantly larger share of property taxes due to rising valuations and growth. Property owners can see how proposed tax rates from various local government agencies would affect their specific property at either williamsonpropertytaxes.org for Williamson County or travistaxes.org for Travis County.
“Our ability to provide great services at a tax rate lower than most similar-sized cities across the state and our neighboring communities helps illustrate why economic and commercial development are so vital to our community,” said Mayor Craig Morgan. “In Round Rock, nearly half of all property tax revenues come from nonresidential property, even though single family residential properties make up 92% of total properties in the City.”
The City Council will hold a public hearing and vote on the tax rate at its Thursday, Aug. 25, meeting.
City Council is not required to ultimately adopt this rate; however, this is the maximum rate the Council may consider to meet the timing requirements under state law without restarting the notice and hearing process.
To learn more about the City of Round Rock’s proposed budget and tax rate, visit roundrocktexas.gov/budget.
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Source: City of Round Rock