With property values skyrocketing across the state, municipalities all over the Hill Country are having to reduce property tax rates to avoid a public election under state law. In Boerne, city staff is eyeing a tax rate of 45 cents per $100 of taxable value.
The tax rate recommended to the Boerne City Council by city staff Tuesday evening would bring the tax rate down just over 2 cents, but the recommended rate flies just under the voter-approval rate by eight-one-hundredths of a cent. The voter-approval rate is the cap set by state legislation. If a proposed rate exceeds the voter-approval rate, an election on the tax rate is triggered.
The city’s tax rate currently sits just over 47 cents per $100. With the average appraisal value of a home in Boerne increasing from $340,000 in the 2021-22 fiscal year to $380,000 this budget cycle, the “average” homeowner can expect to pay $1,710 in property taxes to the city should the staff-recommended rate be formally adopted.
While the tax rate may be going down, property tax bills will still be going up, statistics show. Based on last year’s appraisal average and the current tax rate, the “average” homeowner in Boerne could be seeing a $112 increase on their property tax contribution to the city. To avoid an increase in property tax bills, the city would have to drop the tax rate 8 cents to just over 39 cents per $100 valuation.
During the meeting, several city officials noted the increased property tax revenue will help fund the increase in infrastructure and safety investments the city has planned.
With many properties around Boerne – residential and commercial alike – seeing significant property-value jumps from the appraisal district this year, the number of protests to lower appraisal values has significantly increased. The increase in protests has slowed down the certified tax roll process, leaving city staff with the certified estimates to determine the tax rate parameters. Boerne Finance Director Sarah Buckelew said while these are estimates, they are certified and allowed to be used for tax-rate planning if the certified rolls are not available by late July.
During the meeting Tuesday, Buckelew said the certified tax rolls will not impact the rate the city council considers, but it might lead to some need for budget adjustments to accommodate any gains or losses in the property tax revenue.
Boerne’s 2021-22 tax rate, 47.2 cents
Proposed 2022023 tax rate, 45.1 cents
Average property tax increase, $112
Per every $100 of taxable value.
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