Lubbock growth generates $4M in new revenue under lower property tax rate proposal
LUBBOCK, Texas (KCBD) - The Lubbock City Council on Tuesday proposed a lower property tax rate for the next fiscal year under the expectation that higher property values and the increasing number of them in the Hub City will land $4.1 million in additional revenue in the next budget.
The City of Lubbock proposes a 1.8 cent decrease in the property tax rate to $0.523230 per $100 valuation.
The average taxable value of a home increased by more than $10,000 over the past year. For that average single-family home valued at $168,814, the city estimates $883.29 would be paid in city taxes in the next fiscal year.
“The average single-family home will see a $25 and change increase in their property taxes,” Mayor Dan Pope said. “That’s about two dollars a month.”
The growth in the number of properties is fueling most of the revenue increase for the City of Lubbock. It’s estimated that will be $2,195,284 out of the total $4,100,044.
“Fifty-four percent of the new revenue that we’ll recognize from property tax is from new properties coming on the rolls,” Pope said. “That’s a high-class problem. That’s good.”
The city proposes to break up the $4.1 million by putting $2.9 million in the General Fund, spend $942,408 on debt and put $170,097 toward economic development.
The proposed rate won’t trigger an election under state law. It’s equal to and not more than the voter-approval tax rate.
It will require a public hearing, which is set for September 7th at 5:00 p.m. at Citizens Tower.
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