Greenville city officials have proposed a tax rate that will raise the average homeowner’s city property tax bill a striking 22.7 percent, from $784 to $962. That outpaces the 17 percent rise in the average Greenville home value, from $120,210 to $141,066.
The proposed property tax rate of $0.6822 per $100 valuation is significantly above the city’s “effective” tax rate of $0.5967 and would result in a 15 percent increase in property tax revenue—$1.8 million more than last year. About 90 percent of the increased revenue will come from existing properties.
The “effective” tax rate, also called the “no-new-revenue” rate, adjusts as property values change to keep taxpayers’ bills more or less the same from one year to the next, in the aggregate, though individual results vary based on valuations and exemptions.
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, because year-over-year rate comparisons are meaningless as they don’t account for changing property values.
Greenville taxpayers still have time to voice their opinion on the city’s proposed tax rate and budget.
A second public hearing on the tax rate will be held September 10 at 6:00 p.m. at Greenville City Hall. Budget hearings are set for September 10 and 24. City council will adopt a final budget and tax rate on September 24.
