In the bustling city of Austin, Texas, homeowners are bracing themselves for a significant increase in property taxes next year. Local governments and tax entities are in the process of approving their tax rates and budgets for the upcoming fiscal year 2024-25, which means that decisions made now will have a direct impact on residents’ wallets before the end of the calendar year.
Calculating the potential impact of these proposed tax rate increases, along with any additional bumps that may be voted on in November, the average homeowner in Central Texas could be looking at paying nearly $950 more in property taxes next fiscal year. This translates to an increase of approximately $80 per month, a substantial burden for many families in the area.
It’s important to note that these calculations only take into account the proposed or approved tax rate increases from local entities and do not factor in individual property value increases. Property taxes are heavily influenced by the value of your home and any homestead exemption qualifications you may have.
To get a more accurate idea of how these proposed rate increases could affect you personally, you can input your address into a website linked by Travis County’s Tax Office on its truth-in-taxation resource page. This tool can provide valuable insights into how your specific circumstances may be impacted by the changing tax landscape.
City of Austin Budget
The City of Austin recently approved a staggering $5.9 billion budget for Fiscal Year 2024-25, marking it as the largest budget in the city’s history. For the typical Austin homeowner, this budget approval means an increase of nearly $16 per month in property taxes, equating to around $188 more per year.
When factoring in additional rates and fees for services like trash, water, and electricity, homeowners can expect to see an overall increase of approximately $30 per month, totaling $361.92 more annually. The new budget allocation includes a 4% pay raise for civilian employees, funding for sheltering individuals experiencing homelessness, resources for staffing new fire and EMS stations, and increased funding for the police department.
Travis County Proposal
Travis County is also considering a property tax rate hike, with Commissioners expected to vote on the proposed budget next month. If approved, the county’s portion of your property tax bill could increase by roughly $287 for the year, assuming a tax rate increase is voted for in November.
In a unanimous decision, Travis County Commissioners have already moved to send a 2.5-cent property tax rate increase to the November ballot, with the additional funds earmarked for creating new affordable child care options. The projected $75 million in revenue generated by this increase would cost the average homeowner around $125 in the first year.
Austin Independent School District
The Austin Independent School District (AISD) is facing a budget deficit and is considering sending a tax rate increase to the November ballot to help bridge the financial gap. If approved by voters, the average homeowner could be looking at an extra $412 in property taxes annually, or roughly $34 more per month.
AISD offers a tax rate calculator for residents to determine how this potential increase would impact their individual tax obligations. This tool can be a helpful resource for homeowners to plan and budget accordingly for the upcoming fiscal year.
Austin Community College Funding
Unlike other entities, the Austin Community College (ACC) Board of Trustees has opted not to consider a tax rate increase for the current fiscal year. The college’s $534 million budget relies heavily on property taxes, with approximately 67% of its funding coming from this revenue source.
The board is contemplating a no-new-revenue tax rate of $0.1013 (10.13 cents) per $100 valuation, with $0.0881 allocated for Maintenance and Operations and $0.0132 for Debt Service. This proposed rate would ensure that the average property tax bill does not increase for ACC taxpayers.
Central Health Initiatives
Central Health, an organization dedicated to transforming healthcare access for the community, is in the process of finalizing its budget. A proposed tax rate of 10.7969 cents per $100 of property valuation is being considered, which could result in an additional $66 for the average taxable homestead in Travis County.
The funds generated from this increase would support ambitious initiatives to create a more equitable healthcare system for residents. Central Health expresses gratitude for the trust taxpayers place in their efforts to improve healthcare access and outcomes for the community.
In conclusion, the impending property tax increases in Austin and surrounding areas highlight the importance of understanding and planning for the financial implications on homeowners. By staying informed about proposed tax rate changes, utilizing available tools to assess individual impacts, and actively participating in the decision-making process through voting, residents can navigate the evolving tax landscape with greater clarity and preparedness.
