Residents in the small North Texas city of Whitesboro are about to get hit with big property tax increases, thanks to their local elected officials.
On Monday night, Whitesboro City Council members unanimously approved a property tax rate for 2025 that will hike the average homeowner’s city property tax bills by $498—a 61 percent increase.
According to the city’s tax increase notice, the approved rate of $0.5858 per $100 of taxable value will raise the average Whitesboro homestead tax from $812 to $1,310.
Many residents told council members that’s simply too much and more than they can afford, but city officials forged ahead, saying the extra taxes and spending were needed to make Whitesboro “a town we’re proud to call home.”
Whitesboro’s average taxable homestead value has increased by almost 7 percent, to $223,755, while the adopted tax rate for 2025 is 51 percent higher than the 2024 rate.
Yet the tax increase is below the city’s calculated voter-approval rate, which means Whitesboro’s 4,200 residents don’t get to vote on the huge tax hike.
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.
The total tax levy will be about $2.4 million, a 61 percent increase in property tax revenue for the city to spend compared to last year.
Council members also adopted a 2025-26 budget based on the approved tax rate.
Last year, Whitesboro officials proposed a property tax rate that would have raised property taxes by 45 percent for the average homeowner, but citizens convinced council members to cut spending and adopt the no-new-revenue rate, which generally keeps homeowners’ tax bills flat.
This year, city officials ignored residents’ pleas for property tax relief.
On September 9, a standing-room-only crowd of Whitesboro residents spoke against the tax increase, which they said would have a devastating impact on home and business owners.
State Rep. Shelley Luther (R–Sherman), whose district includes Whitesboro, also raised concerns that it might run afoul of a new law tying tax rates to audit compliance.
Mayor Jeff Butts moved to table the planned tax increase vote after City Administrator Phil Harris recommended it be postponed while he consulted with attorneys.
Both men are new to the process. Harris was hired in January, while Butts was elected in May after running unopposed along with Aldermen Carla Woolsey, Su Welch, and John Moore.
During a September 16 meeting, Harris told council members it was his opinion that Whitesboro was in compliance with the audit requirements when the new law took effect, and therefore the city could legally raise taxes above the no-new-revenue rate.
Harris reviewed some budget items that council members could cut if they wanted to set a lower tax rate but recommended they stick with the proposed increase.
Council then set a budget hearing for September 28 and a final tax rate hearing for September 29, along with votes on the tax rate and budget.
At each of Whitesboro’s budget and tax rate meetings, Luther urged council members to cut spending and avoid taxing constituents out of their homes.
During the public budget hearing on Sunday night, Luther was the only person to speak.
“A lot of people want to say, ‘Shelley Luther, stay in your lane.’ Guess what: This lane is mine,” she told city officials. “I represent all of these people and this is 100 percent my lane.”
She once again begged council members to set a lower property tax rate.
Unlike last year, city officials chose not to listen to Luther and local residents who asked for lower taxes.
Residents can expect to receive their property tax bills in October.
Questions and concerns may be directed to Whitesboro City Council members.
