I own a house in TC and it’s time for the Town to set the FY 23 Tax Rate. How does the process work?
  1. The house is valued by Denton County or Tarrant County Appraisal Districts, and the Town uses these values to set Town tax rate to pay for Fire, Police, Parks, Streets, Code Enforcement, Planning, Building Inspections, Administrative Services, and Debt Service of the Town.
  2. Once the Counties (Denton and Tarrant, depending on where you live) finalized the taxable values of the properties, the calculations process begins with the no-new-revenue tax rate (0% change in new property tax revenue) and the voter-approved tax rate (estimated 3.5% increase in additional property tax revenue from the prior year).
  3. The Town staff and Budget/Finance Committee review the calculated tax rates when proposing the not-to-exceed tax rate to present to Council for a vote. Denton County should complete actual calculated tax rates by Friday, August 5th.
    • August 9th – present proposed budget and not-to-exceed tax rate and set hearings for both
    • August 23rd – public hearing and possible vote on the proposed budget
    • September 13th – public hearing and vote on the tax rate
  4. The tax rate estimated during the budget development process (May thru July) was estimated to remain at or below the voter approval rate.
  5. An individual’s tax bill may go above or below a 3.5% increase. The increase is calculated on the total property tax revenue, not for each individual home. While the individual property owner may have seen a substantial increase in their market value, and up to a 10% increase in their taxable value, the State law limits the total new property tax revenue of the Town to 3.5% without triggering an election.

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1. Why do cities/towns engage in the budgeting process?
2. Who is involved in the budget process?
3. What are the laws surrounding local government budgets in Texas?
4. What timeline does the budgeting process have to follow?
5. Where can I learn more?
6. I own a house in TC and it’s time for the Town to set the FY 23 Tax Rate. How does the process work?
7. Can you explain TC's NEW terminology used related to property tax?
8. What about the PID? How is it assessed?