rollback property tax legislation

1. Consideration of Resolution
Opposing Passage of Senate Bill #2
Regarding
Property Taxes
Presented By: Mark Browne
City Manager
Item # 7
City Council Meeting
February 27, 2017

2. 2
BACKGROUND
• The Texas Senate introduced Senate Bill #2 dealing with
property revenue caps
• The bill would lower the property tax rollback rate from eight
percent to four percent
• The GBCCC passed a resolution opposing this legislation at
its January meeting

3. 3
POLICY ANALYSIS
• The bill poses numerous concerns for cities and counties
a. Reduces flexibility for cities and counties to manage
their own property tax assessment and could potentially
harm operations
b. Does not affect school districts and other taxing
entities

4. 4
POLICY ANALYSIS
c. The savings to an average homeowner in AH would be
approximately $130 (based on effective tax rate) and only
realized if the election was successful
• 2016 Effective Tax Rate was $0.377771 x 1.06% (assuming
6% tax increase) for an assessed property valuation of
$594,157 would equal a savings of approximately $130
• Current Tax Rate of $0.389900 is approximately 3.11% tax
increase of the Effective Tax Rate

5. 5
POLICY ANALYSIS
The purpose of this agenda item is to determine if council
desires to support a resolution similar to that passed by the
GBCCC
FISCAL ANALYSIS
There is potential fiscal impact to the city if the bill is passed
and the city attempts to pass a property tax rate greater than
the four percent rollback

6. QUESTIONS?