PFLUGERVILLE, Texas (KXAN) - The Pflugerville City Council voted to lower the maximum property tax rate when next year's budget kicks in. The rate, now at 59.4 cents per $100 of assessed property value, will drop by 1.54 cents per $100.
The value of an average home in Pflugerville, meanwhile, rose about $9,000.
Pflugerville's sales tax revenues continue to climb reducing the city's reliance on property tax, the city said. Additional revenues allow the city to budget for needed projects while also lowering the property tax rate.
"This is the year that everything aligned for us," Mayor Jeff Coleman said in a news release.
The final budget will be adopted Sept. 10. The full document is posted on the city's website.
The effective rate is calculated based on property values (note the average home value in Pflugerville went up approximately $9000 this year) and calculates the property tax rate that would have the city receiving the same amount in property taxes as the previous year.
State regulations require a city to announce if the city property tax rate needs to be above the effective rate by August 17, so Pflugerville's Council agreed Tuesday to lower property taxes to meet or exceed the effective rate to provide residents with tax relief. The Council discussed the possibility of lowering the rate an additional half cent below the effective rate for a total of 2.04 cent property tax reduction.
The city's current tax rate is .594. The effective rate is .5786 and, while subject to change, City Council is considering an additional half cent reduction that would make the city tax rate .5736. While subject to change, the proposed budget is posted online at www.pflugervilletx.gov/finance. The final budget will be adopted September 10, 2013.
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