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

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

3 Bottom Line Don t blame the appraisal district!

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

5 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 $84,527,031,123 $ Adjusted Total Property Taxes 2015 Adjusted Total Property Value This Year s Effective Tax Rate

6 The Seesaw Effect Appraised Property Value Effective Tax Rate

7 $138,886,762 $84,527,031,123 Rollback Rate for FY2016 $ Adjusted Operations Property Taxes 2015 Adjusted Appraisal Value This Year s Effective OperatingRate $ % $ This Year s Effective OperatingRate The Law Maximum OperatingRate

8 Total Rollback Rate / FY 2016 $ $ $ Maximum Operating Rate Debt Tax Rate This Year s Total Rollback Rate 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.

9 Recommended Tax Rate for FY 2016 $ $ $ Proposed OperatingTax Rate Debt Tax Rate This Year s Proposed Tax Rate 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.

10 Effective Tax Rate Worksheet

11 Truth-in-Taxation 26.05(b) of Property Tax Code Steps Required for Adoption of Tax Rate & Budget Date: 08/12/ :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 , 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 $ 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.

12 Truth-in-Taxation 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, Property Tax Rate Description FY 2015 Adopted FY 2016 Proposed General Fund $ $ Road & Bridge Fund $ $ Permanent Improvement Fund $ $ Total Maintenance & Operating Tax Rate $ $ Debt Service Fund $ $ Total Property Tax Rate $ $ Effective Tax Rate $ $ Effective Maintenance & Operating Tax Rate $ $ Rollback Tax Rate $ $ Rollback Maintenance & Operating Tax Rate $ $ Debt Tax Rate $ $

13 Average Tax Bill 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. Plano ISD 66% City of Plano 19% Collin College 4% TAXING UNIT TAX RATE AVERAGE TAXES Collin County 11% Collin County $ $ City of Plano $ $ 1, Plano ISD $ $ 3, Collin County Community College District $ $ Total $ $ 5, FY 2016 Recommended Tax Rates for all entities listed above. Includes increased homestead exemption for ISDs as part of SB1

14 Projected Tax Base Growth $120 $100 Adjusted Taxable Value * 2016 figure based on preliminary estimates by CAD $95.9 $105.1 Billions $80 $60 $61.8 $68.5 $71.8 $72.3 $71.2 $72.4 $74.5 $79.1 $86.5 $40 $20 $0 Tax Year 10.1% 10.7% 4.8% 0.7% -1.5% 1.6% 3.0% 6.2% 9.3% 10.9% 9.6%* *

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

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

17 Billions $100 $90 Population & Tax Base Growth: ,000, ,000 $80 800,000 $70 700,000 $60 600,000 $50 500,000 $40 Tax Base : +51% 400,000 $30 300,000 $20 200,000

18 Billions $110 $100 $90 Taxable Values since % % + 9.2% $80 $70-1.5% $60 $50 $40

19 0.255 Collin County Tax Rates % - 1.0% - 1.0% - 1.1% - 1.1% % 0.22

20 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 $ to $

21 Hypothetically, for FY 2017 FY 2016 FY 2017 Avg. Home Value $285,292 $310,000 Tax Rate.225/$ /$100 County Portion $ $ Overall Tax Rate Overall Tax Bill $6, $6,930.24

22 Bottom Line Don t blame the appraisal district!

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