County Judge, Collin County Keith SELF

Understanding Property TaxRates & Appraisal Growth

Don’t blame the appraisal district !

Bottom Line

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

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 AdjustedTotal Property Taxes

$84,527,031,123

2015 AdjustedTotal Property Value

$ 0.217818

This Year’sEffective Tax Rate

Appraised Property Value Effective Tax Rate

The “Seesaw” Effect

$ 0.164310

This Year’sEffective

Operating Rate

$138,886,762

2014 Adjusted Operations

Property Taxes

$84,527,031,123

2015Adjusted

Appraisal Value

$ 0.177455

MaximumOperating Rate

108%

The Law

$ 0.164310

This Year’s EffectiveOperating Rate

Rollback Rate for FY2016

$ 0.177455

MaximumOperating Rate

$ 0.055200

Debt Tax Rate

+$ 0.232655

This Year’s TotalRollback 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.

+$ 0.169800

ProposedOperating 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.

Effective Tax Rate Worksheet

§26.05(b) of Property Tax Code Steps Required for Adoption of Tax Rate & BudgetDate: 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

Property Tax Rate Description FY 2015Adopted

FY 2016Proposed

General Fund $0.173268 $0.165800 Road & Bridge Fund $0.004000 $0.004000 Permanent Improvement Fund $0.000000 $0.000000Total Maintenance & Operating Tax Rate $0.177268 $0.169800 Debt Service Fund $0.057732 $0.055200Total Property Tax Rate $0.235000 $0.225000 Effective Tax Rate $0.223782 $0.217817Effective Maintenance & Operating Tax Rate $0.169857 $0.164310Rollback Tax Rate $0.241177 $0.232654Rollback Maintenance & Operating Tax Rate $0.183445 $0.177454Debt 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

Collin County11%

City of Plano20%

Plano ISD66%

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

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016*$0

$20

$40

$60

$80

$100

$120

$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 es-

timates by CAD

Billi

ons

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%*

County $.225 $20.7 MPlano $.4886 $44.9 MPlano ISD $1.439 $132.4 MCollin 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:

County10% Pla

no22%

Plano ISD66%

Collin College1%

Levies without change

An estimated $9.2 B increase in appraisals results in …

… almost $200 M in increased tax levies overall

Population & Tax Base Growth: 2014-2015

2002

2004

2006

2008

2010

2012

2014

$20,000,000,000

$30,000,000,000

$40,000,000,000

$50,000,000,000

$60,000,000,000

$70,000,000,000

$80,000,000,000

$90,000,000,000

$100,000,000,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

Population 2002-2015:

+ 46%

Tax Base 2002-2015: +51%

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

* $40,000,000,000

$50,000,000,000

$60,000,000,000

$70,000,000,000

$80,000,000,000

$90,000,000,000

$100,000,000,000

$110,000,000,000 Taxable Values since 2002

+ 9.6%

+ 11.2%

+ 9.2%

+ 9.6%

- 1.5%

2002-2016: +56%

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

*0.22

0.225

0.23

0.235

0.24

0.245

0.25

0.255

- 4.4%

- 1.1%

- 1.1%

- 1.0%

- 1.0%

- 2.0%

Collin County Tax Rates

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.

Hypothetically, for FY 2017 …

FY 2016 FY 2017Avg. Home Value

$285,292 $310,000

Tax Rate .225/$100 .225/$100County Portion

$609.81 $662.63

Overall Tax Rate

2.23456 2.23456

Overall Tax Bill

$6,377.90 $6,930.24

Don’t blame the appraisal district !

Bottom Line