1) Property taxes are calculated based on appraised home values and tax rates set by various taxing entities like counties, cities, and school districts. 2) When home values rise due to increases in the housing market, it causes tax levies to rise even if tax rates remain the same, as higher home values result in more taxes collected. 3) For example, a projected $9.2 billion increase in Collin County home values for 2016 would result in almost $200 million in additional taxes collected even without any changes to tax rates by the county, city, and school district.

1. County Judge, Collin County Keith SELF
Understanding Property
Tax
Rates & Appraisal
Growth

2. Don’t blame the appraisal district !
Bottom Line

3. The Timeline
January 1 Assessment Date
End of April Appraisals Mailed
End of May Deadline to File Protests
Mid-July Chief Appraiser Certifies Appraisal Rolls
August Effective Tax Rate Calculated
September County Budget Adopted

4. Calculating the Effective Tax Rate for FY2016
The Effective Tax Rate is a hypothetical property
tax rate that would give a county the same amount
of revenue for the upcoming fiscal year that it had
for the previous fiscal year.
$184,114,865
2014 Adjusted
Total Property Taxes
$84,527,031,123
2015 Adjusted
Total Property Value
$ 0.217818
This Year’s
Effective Tax Rate

5. Appraised Property Value Effective Tax Rate
The “Seesaw” Effect

6. $ 0.164310
This Year’s
Effective
Operating Rate
$138,886,762
2014
Adjusted Operations
Property Taxes
$84,527,031,123
2015
Adjusted
Appraisal Value
$ 0.177455
Maximum
Operating Rate
108%
The Law
$ 0.164310
This Year’s Effective
Operating Rate
Rollback Rate for FY2016

7. $ 0.177455
Maximum
Operating Rate
$ 0.055200
Debt Tax Rate
+
$ 0.232655
This Year’s Total
Rollback Rate
Total Rollback Rate / FY 2016
Why is the Rollback Rate important? Exceeding the Rollback
Rate allows citizens to petition the County to hold an election
that would “roll back” the tax rate to the Rollback Rate.

8. +
$ 0.169800
Proposed
Operating Tax Rate
$ 0.055200
Debt Tax Rate
$ 0.225000
This Year’s
Proposed Tax Rate
Recommended Tax Rate for FY 2016
The Proposed Tax Rate consists of the required Debt Tax Rate
(covers the interest and principal on bonds secured by property
tax revenue) and a proposed Maintenance and Operations Tax
Rate.

9. Effective Tax Rate Worksheet

10. §26.05(b) of Property Tax Code Steps Required for Adoption of Tax Rate & Budget
Date: 08/12/2015 02:08 PM
Language Required in the Motion Setting This Year's Tax Rate:
This year's proposed tax rate exceeds the effective tax rate. The vote on the ordinance, resolution, or
order setting the tax rate must be a record vote. A motion to adopt the ordinance, resolution, or order
must be made in the following form:
I move that the property tax rate be increased by the adoption of a tax rate of 0.225000, which is
effectively a 3.30 percent increase in the tax rate.
Statement Required in the Ordinance, Resolution, or Order Setting:
This year's levy to fund maintenance and operations expenditures exceeds last year's maintenance and
operations tax levy. The following statements must be included in the ordinance, resolution, or order
setting this year's tax rate. The statements must be in larger type than the type used in any other
portion of the document.
THIS TAX RATE WILL RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR'S
TAX RATE.
THE TAX RATE WILL EFFECTIVELY BE RAISED BY 3.34 PERCENT AND WILL RAISE TAXES FOR
MAINTENANCE AND OPERATIONS ON A $100,000 HOME BY APPROXIMATELY $-7.47.
Statement That Must be Posted on the Home Page of Any Internet Website Operated by the Taxing Unit:
This year's levy to fund maintenance and operations expenditures exceeds last year's maintenance and
operations tax levy. The following statements must be included in the ordinance, resolution, or order
setting this year's tax rate. The statements must be in larger type than the type used in any other
portion of the document.
County of Collin ADOPTED A TAX RATE THAT WILL RAISE MORE TAXES FOR MAINTENANCE AND
OPERATIONS THAN LAST YEAR'S TAX RATE.
THE TAX RATE WILL EFFECTIVELY BE RAISED BY 3.34 PERCENT AND WILL RAISE TAXES FOR
MAINTENANCE AND OPERATIONS ON A $100,000 HOME BY APPROXIMATELY $-7.47.
Truth-in-Taxation

11. Property Tax Rate Description
FY 2015
Adopted
FY 2016
Proposed
General Fund $0.173268 $0.165800
Road & Bridge Fund $0.004000 $0.004000
Permanent Improvement Fund $0.000000 $0.000000
Total Maintenance & Operating Tax Rate $0.177268 $0.169800
Debt Service Fund $0.057732 $0.055200
Total Property Tax Rate $0.235000 $0.225000
Effective Tax Rate $0.223782 $0.217817
Effective Maintenance & Operating Tax Rate $0.169857 $0.164310
Rollback Tax Rate $0.241177 $0.232654
Rollback Maintenance & Operating Tax Rate $0.183445 $0.177454
Debt Tax Rate $0.057732 $0.055200
This recommended budget will raise more total property taxes than last year’s budget by an
amount of $8,736,257 which is a 4.66 percent increase from last year’s budget. The property tax
revenue to be raised from new property added to the tax roll this year is $6,212,576.34.
Truth-in-Taxation

12. Collin
County
11%
City of
Plano
19%
Plano
ISD
66%
Collin
College
4% TAXING UNIT TAX RATE
AVERAGE
TAXES
Collin County $0.2250000 $ 609.81
City of Plano $0.4886000 $ 1,115.15
Plano ISD $1.4400000 $ 3,748.20
Collin County Community College
District $0.0189600 $ 233.83
Total $2.2355600 $ 5,706.99
This is a property tax breakdown for an average homeowner living in Collin
County, where the average home was valued at $285,292 in 2015, according
to statistics compiled by the Central Appraisal District of Collin County.
FY 2016 Recommended Tax Rates for all entities listed above.
Includes increased homestead exemption for ISDs as part of SB1
Average Tax Bill

13. $0
$20
$40
$60
$80
$100
$120
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016*
$61.8
$68.5
$71.8 $72.3 $71.2 $72.4 $74.5
$79.1
$86.5
$95.9
$105.1Adjusted Taxable Value
* 2016 figure based on preliminary estimates by CAD
Billions
1.6% 3.0% 6.2% 9.3% 10.9%
Tax Year
-1.5%0.7%4.8%10.7%10.1%
Projected Tax Base Growth
9.6%*

14. County $.225 $20.7 M
Plano $.4886 $44.9 M
Plano ISD $1.439 $132.4 M
Collin
College
$.01896 $1.7 M
Total $2.17256 $199.8 M
Levies without change
So, with a $9.2 Billion appraised value increase from
2015-2016, these are estimated additional tax levies
based on existing tax rates in the county:

15. County
10%
Plano
23%
Plano ISD
66%
Collin College
1%
Levies without change
An estimated
$9.2 B increase
in appraisals
results in …
… almost $200 M in increased tax levies overall

16. Population & Tax Base Growth: 2014-2015
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
$20
$30
$40
$50
$60
$70
$80
$90
$100
Billions
Tax Base 2002-2015: +51%

17. $40
$50
$60
$70
$80
$90
$100
$110
Billions
Taxable Values since 2002
+ 9.6%
+ 11.2%
+ 9.2%
+ 9.6%
- 1.5%

18. 0.22
0.225
0.23
0.235
0.24
0.245
0.25
0.255
2002 2003 2004 20052006 2007 20082009 2010 2011 2012 2013 2014 2015 2016*
- 4.4%
- 1.1%
- 1.1%
- 1.0%
- 1.0%
- 2.0%
Collin County Tax Rates

19. For FY 2017, for example …
For the FY 2017 budget planning, preliminary
estimates from the Central Appraisal District
show:
• Average Home Value increases from $285,292
to $310,000 – or 8.7%; so …
• The average COUNTY levy on a home would jump
from $609.82 to $662.63.

20. Hypothetically, for FY 2017 …
FY 2016 FY 2017
Avg. Home
Value
$285,292 $310,000
Tax Rate .225/$100 .225/$100
County Portion $609.81 $662.63
Overall Tax
Rate
2.23456 2.23456
Overall Tax Bill $6,377.90 $6,930.24

21. Don’t blame the appraisal district !
Bottom Line