HomeMy WebLinkAboutIR 9506 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9506
To the Mayor and Members of the City Council August 7, 2012
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SUBJECT: SUBMISSION OF 2012 EFFECTIVE AND ROLLBACK TAX RATES
This informal report is to inform the City Council of the Effective and Rollback Tax Rates for use
in their upcoming budget discussions regarding Fiscal Year 2012. The Effective Tax Rate reflects
what rate would generate the same levy as the prior year based solely on property that was
taxable for both years. The rollback tax rate serves as a cap on property tax rates, thus limiting
taxing units' ability to make material increases over the prior year's rate.
Pursuant to Texas Property Tax Code Section 26.04.c, the Effective Tax Rate =
(Last Year's Levy — Lost Property Levy)
(Current Total Value — New Property Value)
Property tax rates are comprised of two separate rates, Maintenance & Operation (M&O) and
Interest & Sinking (I&S or the debt service component).
The 2012 Effective Tax Rate is $0.860699 / $100 assessed valuation
The 2012 Rollback Tax Rate is $0.926961 / $100 assessed valuation
The 2011 Adopted Tax Rate is currently $0.8550 / $100 assessed valuation
If the City Council wants the option to adopt a tax rate that exceeds the effective rate of
$0.860699, a resolution to consider a tax increase would have to be adopted prior to the public
hearings.
If the City Council adopts a total tax rate that exceeds the rollback rate, taxpayers may petition
for a rollback election by gathering signatures from at least seven percent (7%) of the registered
voters shown on the most recent official voter list. If the rollback election succeeds, the City
would be forced to adopt the rollback rate.
This year, the City will not be subject to a rollback election unless it adopts a tax rate higher than
$0.926961 / $100 assessed valuation.
Pursuant to Texas Property Tax Code Section 24.04.e, the Effective Tax Rate and Rollback Tax
Rate will be published in the newspaper by August 11, 2012 or as soon thereafter as practicable.
The tax rate (M&O and debt service components combined) is scheduled to be adopted on
September 18, 2012.
If you have any questions, please contact James Mauldin, City Treasurer, at (817) 392-2438.
Tom Higgins
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS