HomeMy WebLinkAboutIR 7782 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7782
December 21, 1993
To the Mayor and Members of the City Council
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Subject: City-ISD Property Tax Comparison
Attached for your information is a story that appeared in the Dallas Morning News on
November 28. The article details the impact of school-finance reform on school
property taxes in Dallas County. Staff gathered similar information for Tarrant County
independent school districts (ISD's) and compared them to the City of Fort Worth's
taxes. The results of this study are illuminating.
Property tax rates for all Tarrant County ISD's increased an average of 33.4 percent over
the period 1990-91 to 1993-94. Increases ranged from a high of 54.1 percent (Azle ISD)
to a low of 16.5 percent (Everman ISD). Over that same time span, the City of Fort
Worth's tax rate rose only 5.7 percent. From last year to the present, ISD tax bills on a
$100,000 valued house with a homestead exemption rose an average of 12.3 percent.
The increases ranged from 27.1 percent (BEB ISD) to 1.9 percent (Crowley ISD). As the
newspaper article points out,much of the school tax bill increases from 1992-93 to 1993-
94 is due to the elimination of the County Education Districts which provided a 20
percent homestead exemption. The basic ISD homestead exemption is only$5,000.
This comparison leads to several observations.
• The City of Fort Worth has been very successful in its efforts to hold down
annual tax rate increases.
• The City's tax rate has increased modestly when compared to school tax
rates.
• School-finance reform has had a significant impact on local taxpayers.
• The comparison highlights the problems local taxing authorities face when
trying to finance their operations from a limited tax base. As one entity
raises its taxes to meet external obligations, the pressures on other entities
to forego additional taxes increase.
Bob Terrell
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS
TAX RATE COMPARISON
TARRANT COUNTY SCHOOLS VS CITY OF FT WORTH
INCREASE
DISTRICT 90-91 91-92* 92-93* 93-94 90-91 93-94
ARLINGTON 1.1300 1 . 3900 1. 4000 1 . 3600 20 .4%
AZLE 0. 8500 1 . 2700 1.2900 1 . 3100 54 .1%
BIRDVILLE 1 . 2100 1 . 4000 1.5300 1 .4900 23 .1%
CARROLL 1. 0100 1 . 4300 1. 6300 1 . 6300 61 . 4%
CASTLEBERRY 0 . 9700 1 . 2000 1.3300 1 . 4300 47 . 4%
CROWLEY 1 . 2000 1 . 3600 1. 4900 1 . 4600 21. 7%
EAGLE MT/ 1.0100 1. 3600 1.5200 1 . 4600 44. 6%
SAGINAW
EVERMAN 1. 2100 1.3600 1 . 4700 1 .4100 16.5%
FORT WORTH 1.1100 1 . 2900 1. 4200 1 .4200 27 . 9%
GRAPEVINE/ 1.0500 1 . 2300 1. 3900 1 . 4200 35 .2%
COLLEYVILLE
H/E/B 1.1300 1 . 3200 1. 3400 1 .5200 34.5%
KELLER 1.2500 1 .3300 1. 4500 1 . 4600 16 .8%
KENNEDALE 1 .0300 1 . 2700 1. 5000 1 .4800 43.7%
LAKE WORTH 1.0700 1.1600 1.3300 1 .3900 29. 9%
MANSFIELD 1.0900 1 . 2100 1. 4100 1.4100 29.4%
WHITE SETTLEMENT 1.1200 1.3200 1. 4500 1 . 4400 28. 6%
AVERAGE INCREASE 33 .4%
CITY OF FT WORTH 0. 8990 0 . 9271 0 . 9500 0 . 9500 5.7%
*CED 91/92 83 .5 CENTS
92/93 96 .5 CENTS
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Sharp rise in tax bills
brings on s.choo I daze
ftmthmmIffi p6n hits hWer fan expected
By Melanie Lewis That's not Something a lot of people
34 WrW of tae DON UwWq No" anticipated before the first share the.
Flip the calendar back four wealth funding system,took effect In
or.for you homeowners,flip du= the 199M school year
your old property tax reoelpft 11 don't think people in districts
Notice the difference? scross the board realized it would hit
These days it's hard not to notice all schools,"said Mark Hyatt,assistant
bm much higher school property tax superintendent for business for the
as are than they were in 1W4& Carrollton-Parmers Branch district.
- Changing qcbool•fltiance laws, A sampling of tax rates in the Del-
funding
f=and fallen property W am shows that school districts of
moues are
the higher tax bills all wealth levels raised taxes 84PIM
that property owners have been rw cantlY in the 109 four YeGm
celving lately.
The tax increases ranged from
. Rducstlon officials also blame the percent in Mesquite to 143 percent In
state for not giving school districts Highland Park On average,rates have
encuo money to meet enroUmant fi=*wed 49 percent alum the year
grow* although date ofilcials say before the first share-the-wealth
they did the beet they could without wool-ftAm Plan bv&
it��taxes. . Taxes went up In JAM because rels,
]IN been the am whether a dis tively poor districts were encouraged
trice is considered reUtiv*wealthy to tax at higher rates to get more
by sub prop" st.an** or rely matching money from,the state.
tively poor.
Grand Prairie is we such school
"Districts of all wealth levels have system That district's rate went from
increased their tax rates significantly $146 per$100 of assessed property v6
over the lost few ym** said, Craig ue to 5I.19 that year.
Foster,executive director Of the Equi• *We made a conscious decision to
ty omter, an association of Texas increase the tax rate to maximize the
school districts with low property Please see SCHOOL on Page 3SA. L
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