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 (l&S). The M&O rate is $0.403259 on each $100 of taxable value and the l&S rate is $0.115931 on each $100 of taxable value which, when combined, equals the total tax rate of $0.519190 on each $100 of taxable value.
The 2025 proposed tax rate ($0.519190) is the same as the Tax Year 2024's adopted tax rate ($0.519190).
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, a public hearing will be held to provide the public an opportunity to speak on the topic of the proposed tax rate at 9:00 a.m., Wednesday, October 15, 2025.
Additionally, the proposed tax rate, if adopted, is not expected to increase the City's ad valorem property 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 immediately preceding fiscal year. Thus, a public hearing is not required under Chapter 44 of the City's Code of Ordinances.
Therefore, it is recommended that City Council adopt a Tax Year 2025 tax rate for Maintenance and Operations of $0.403259 on each $100 of taxable value and a tax rate for the Debt Service of $0.115931 on each $100 of taxable value.
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Melissa Dubowski Chief Business Officer/Director of Finance