For a second year in a row, elected officials in the small North Texas city of Whitesboro are proposing a big property tax increase, which could raise residents’ tax bills by more than 60 percent without a public vote.
On Tuesday night, Whitesboro City Council members will consider adopting a property tax rate for 2025 that would hike the average homeowner’s city taxes by $498—a 61 percent increase.
The proposed increase, which would also raise 61 percent more total tax revenue, is below the city’s calculated voter-approval rate.
That means Whitesboro’s 4,200 residents won’t get a say on the ballooning property taxes at the ballot box, just at city council.
A carve-out in a 2019 property tax reform law exempts municipalities with fewer than 30,000 residents from a 3.5 percent tax-increase cap imposed on larger cities. About 90 percent of Texas cities are exempt.
No public vote is required if the increase does not generate more than a “de minimis” $500,000 in additional property tax revenue above the amount collected by the no-new-revenue rate for maintenance and operating expenses.
Whitesboro’s proposed property tax rate is below the de minimis rate.
While Whitesboro’s average taxable homestead value has increased by almost 7 percent, to $223,755, the proposed tax rate for 2025 is 51 percent higher than the 2024 rate.
If adopted, the proposed rate will increase the average Whitesboro homeowner’s city tax bill from $812 to $1,310.
The total tax levy would be about $2.4 million.
Last year, Whitesboro proposed a property tax rate that would have raised property taxes by 45 percent for the average homeowner.
Instead, citizens showed up and convinced council members to adopt the no-new-revenue rate, which generally keeps homeowners’ tax bills flat.
Whitesboro officials say years of low or no property tax increases have depleted the city’s general fund balance, prompting the huge hike.
City Administrator Phil Harris told the Whitesboro News-Record that the mayor and city council members are “on the same page” about the tax increase.
“None of us are happy about it, but I’m confident we’re doing the right thing,” said Harris.
A public hearing on the tax rate and budget will be held during a city council meeting on Tuesday, September 9, at 6:00 p.m.
The budget outlines the city’s proposed spending, which is what drives property taxes. Last year, city officials were convinced to cut spending to keep taxes flat.
Whitesboro residents can direct questions to city council members.
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