Thursday, Lubbock City Council members proposed lowering the current tax rate by almost a penny, but that may not put more money in your wallet. NewsChannel 11 broke down the numbers and found less could equal more.
It all comes down to what folk's properties are worth at tax time.
"I have a motion to set the tax rate at $0.45505," Councilman John Leonard said.
Leonard proposed setting taxes at Lubbock's Truth in Taxation Rate. Much discussion later, and the council agreed.
"The motion carries 7-0," Mayor David Miller said.
If the rate is approved, Lubbock's tax rate would drop from $0.46199 to $0.45505. That's about a seven-tenths of a cent difference, but less could equal more.
"It is possible to actually collect more in revenues with a lower tax rate," Leonard said.
That's because several Lubbock property values have gone up.
"So, if your house went up $10,000, then you're going to pay that additional tax on $10,000 that wasn't there before," Chief Financial Officer Jeff Yates said.
Take a look at the difference on a $100,000 home. With the current tax rate, the owner would pay $461.99 a year in property taxes.
Using the proposed lower tax rate, the owner would pay $455.05 a year in property taxes, saving $6.94, but if your home's value went up by $5,000, using the proposed lower tax rate, the owner would pay $477.80, costing $15.81 extra.
This rate is not final. The council must hold two public hearings before adopting any rate.
The first hearing will be August 23rd at 6 p.m., and the second hearing will be August 30th at 7:30 a.m. Both will be held in council chambers.
The council is scheduled to make a final decision on September 13th.
The proposed tax rate is lower than what City Manager Lee Ann Dumbauld had recommended, so if this lowered rate is approved, the city faces a $720,000 short-fall in the next year's budget.
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