With additional funding identified to assist with covering the local share of expenditures related to Hurricane Harvey, the Administration will propose a lower tax rate than originally anticipated on September 13, 2017 when City Council established three hearing hearings dates. The proposed lower tax rate is not expected to increase the City of Houston's ad valorem tax revenues for the current fiscal year in an amount greater than five percent more than the ad valorem property tax revenues collected during the i1mnediately preceding fiscal year. Accordingly, a third hearing is no longer necessary.
The proposed overall Tax Rate of $0.586420 on each $100 of taxable value must be apportioned between Maintenance and Operations (M&O) and Interest and Sinking Fund (I&S). The M&O Rate is $0.422437 on each $100 of taxable value and the I&S Rate is $0.163983 on each $100 of taxable value which, when combined, equal the total Tax Rate of $0.586420 on each $100 of taxable value.
Therefore, it is recommended that City Council adopt a Tax Year 2017 tax rate for Maintenance and Operations of $0.422437 on each $100 of taxable value and a tax rate for the Interest and Sinking Fund of $0.163983 on each $100 of taxable value.
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Tantri Emo