Dallas mayor, council member want bigger property tax rate cut in budget
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Dallas Mayor Eric Johnson and another City Council member are requesting a revised budget proposal to make a bigger cut to the property tax rate.
Driving the news: On Aug. 8, city manager T.C. Broadnax presented a proposed $4.6 billion budget with a 0.65 cent cut to the property tax rate.
- The mayor and Council member Cara Mendelsohn say that's not enough of a decrease to reduce property tax payments for residents.
Why it matters: Homeowners are paying more in property taxes because home values went up even as cities have cut tax rates.
- As a result, city revenues — and budgets — have grown.
Catch up fast: Appraised property values in Dallas rose more than 10% — by almost $19 billion — this year compared to 2022, and about 15% from 2021 to 2022.
- The current budget proposal would lower the rate from 74.58 cents per $100 valuation to 73.93 cents.
The recommendation: The mayor and Mendelsohn have asked for a budget proposal that doesn't increase the revenue the city generates from property taxes in the upcoming fiscal year.
- Johnson asked city staff to submit a revised budget to City Council members by Sept. 1.
What they're saying: The Dallas city budget has grown beyond the population increases and income, Mendelsohn wrote in a memo to the city manager.
- "It is not sustainable to continue to ask our residents and businesses to support an increased tax burden."
Of note: Property taxes levied by school districts make up a larger portion of the average Texan's tax bill.
- Dallas ISD's tax rate is $1.18 per $100 valuation, about 46% of a Dallas homeowner's property tax bill.
The bottom line: Dallas has one of the highest property tax rates among large cities in the metropolitan area.
- Fort Worth, for example, is proposing a new tax rate of 67.2 cents per $100 valuation, a 4 cent cut.
What's next: Dallas residents can comment on the city manager's proposed budget at 1pm Wednesday at City Hall.