Houston Mayor Seeks 9% Property Tax Hike Due to Harvey
The mayor of Houston, Mr. Sylvester Turner, has proposed an 8.9% increase in Houston’s property tax rate. The rate would increase to 63.87 cents per $100 of taxable value, to offset costs not reimbursed by the federal government in the wake of damages from Hurricane Harvey.
A review of Pinnacle’s client properties in the city of Houston determined that, on average, 22.25% of a client’s total property tax rate is the city of Houston’s current 58.64 cents per $100. If this proposal were approved, the impact on forthcoming tax bills would be as follows:
| Taxable Value | 58.642₵ per $100 | 63.87₵ per $100 | Additional Tax Expense |
|---|---|---|---|
| $ 10,000,000 | $ 58,642 | $ 63,870 | $ 5,228 |
| $ 20,000,000 | $ 117,284 | $ 127,740 | $ 10,456 |
| $ 50,000,000 | $ 293,210 | $ 319,350 | $ 26,140 |
| $ 100,000,000 | $ 586,420 | $ 638,700 | $ 52,280 |
The proposed increase will be submitted to the city council, who will vote on the increase October 18th following public hearings. The mayor’s office claims this is an “emergency request”, and as such, the law dictates the increase cannot be extended beyond 12 months.
It’s unclear the council’s standing on this proposal, or if this illustrates a ‘negotiation tactic’ to start high and settle for 5%-6%. Regardless, this request hints that many other jurisdictions in Harris County and along the Texas coast may be looking to bump rates (or at least not reduce them) in the wake of Hurricane Harvey.
So, it appears when tax offices and appraisal districts say there will be “Zero Impact” this year because of storm damage, they really mean “Zero Relief” because 2017 taxable values likely won’t be updated to help offset your loss. But the other half of the equation may very well change to help offset their loss, even if it’s at your added expense.
Sources:
http://www.kristv.com/story/36286334/harvey-has-zero-impact-on-this-years-tax-bills
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