Taxpayers in Canyon can expect to pay more in property taxes with the city commissioners’ proposed tax rate.
According to information released from the City of Canyon, commissioners are proposing a property tax rate of $0.44993 per $100 valuation, which is higher than the “effective” tax rate for the coming year, $0.43809 per $100 valuation. Commissioners say this proposed rate will equate to an effective tax increase of about 2.7 percent.
The “effective” tax rate, also known as the “no-new-revenue” rate, is the rate at which tax revenues should stay the same, meaning tax bills could stay mostly the same for those in the district. Texas’ Truth in Taxation laws require taxing entities to calculate and publish their effective rate each year to ensure the public is informed of any property tax increases.
While the city’s maintenance and operations tax rate would steady at $0.39083 per $100 valuation, they are increasing the interest and sinking fund rate (I&S)—which goes towards debt payments—by $0.0591 per $100 valuation.
The City of Canyon says if the proposed rate is approved, the City plans to use the additional revenue to purchase two new police vehicles and to repair aging infrastructure. Public hearings on the increase were held on August 5 and August 19.