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CITY OF HOUSTON - CITY COUNCIL
Meeting Date: 10/8/2024
ALL
Item Creation Date:
FIN Truth in Taxation 2024 #3
Agenda Item#: 42.
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| | | | | | | | Summary:
RECOMMENDATION from the Mayor and Director of Finance to place the proposed tax rate of $0.519190 on each $100 of taxable value, which is the same as last year's tax rate on the October 16 agenda. Publication of the proposed tax rate will be October 11, 2024. |
| | | | | | | | Background:
State law sets forth detailed requirements for the process of setting ad valorem tax rates, including public hearings, newspaper publications, and actions of the governing body. These requirements include minimum and maximum time periods for each step in the process. |
| | | | | | | | Prior Council Action:
Motion No. 2024-656 (8/21/2024) |
| | | | | | | | Amount and Source of Funding:
No-New Revenue Tax Rate and Voter-Approval Tax Rate
Section 26.04 (e) of the Tax Code requires that the No-New Revenue Tax Rate and the Voter-Approval Tax Rate be reported to the governing body of each taxing unit. The No-New Revenue Tax Rate for Tax Year 2024 is $0.519926 on each $100 of taxable value and the Voter-Approval Tax Rate is $0.569718 on each $100 of taxable value. These numbers are based on Certified Initial Roll information from the Harris Central Appraisal District, Fort Bend Central Appraisal District, and the Montgomery Central Appraisal District.
No Public Hearing
Section 26.05 (d) of the Tax Code provides that a taxing unit may not adopt a tax rate that exceeds the lower of the No-New Revenue Tax Rate and the Voter-Approval Tax Rate until the governing body has held a public hearing. Since the City of Houston proposed a tax rate that does not exceed the No-New Revenue Tax Rate or the Voter-Approval Tax Rate, the public hearings are not required.
Summary
City Council must pass a motion to place a specific proposed tax rate on a future City Council Agenda. The City Council meeting to adopt the proposed tax rate may occur following the publication of notice on October 11, 2024, but may not be later than October 28, 2024.
The proposed tax rate of $0.519190 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 $0.378605 on each $100 of taxable value and the I&S rate is
$0.140585 on each $100 of taxable value which, when combined, equals the total tax rate of $0.519190 on each $100 of taxable value.
It is therefore recommended that City Council adopt the recommendation of the Director of the Finance Department that the No New Revenue Tax Rate for Tax Year 2024 is $0.519926 on each $100 of taxable value and the Voter-Approval Tax Rate is
$0.569718 on each $100 of taxable value, place the proposed tax rate of $0.519190 on each $100 of taxable value for Tax Year 2024 on the October 16, 2024 City Council Agenda.
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Melissa Dubowski, Chief Business Officer/Director of Finance |
| | | | | | | | Contact Information:
Alma Tamborello, Deputy Director Phone: 832-393-9099
LaToya Stephenson, Senior Staff Analyst Phone: 832-393-9028
Elizabeth Sosa, Staff Analyst Phone: 832-393-9068
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