Property owners who did not have damage from Tropical Storm Harvey last year will likely be paying more in property taxes for 2019 because of the decrease in values for buildings that flooded.
For instance, the city of Pinehurst had about an 18 percent drop in total property values because of Harvey damage. The average value of a house in the city dropped from $76,976 to $62,098.
To make up for the loss of income from property taxes, city councils may decide to go with the effective tax rate, which is calculated to raise the same amount of property taxes income as in 2018.
In Pinehurst, the current tax rate is 69.76 cents per $100 valuation, but to raise the same amount of money as last year, the city will need to charge a tax rate of 76.56 cents per $100 valuation.
Orange County Judge Dean Crooks, though, said he wants to keep the current rate of 54.2 cents per $100 valuation. With that tax amount, the county will have almost $5.1 million less to pay employees and for services to the public.
The city of Vidor will have a loss of about $200,000 in income because of the lower appraisals. The current tax rate there is 72.4 cents per $100 valuation. City Manager Mike Kunst said council members last week indicated they may go with the effective rate of 76.43 cents per $100 valution.
He said the city will be facing cutbacks. For instance, the capital spending for equipment in the street department will go down from $250,000 to $50,000. Also the city this year is looking at not putting money in the special economic promotion fund.
Orange City Manager Dr. Shawn Oubre last week told that city council the tax appraisals will equal out next year as people repair their houses. “As a person who flooded, I’ll gladly trade you (paying a bit more in taxes),” he said.
Orange Finance Director Cheryl Zeto said a person with a $100,000 property now valued at $50,000 because of the flood will pay about $300 less in property taxes for 2019.
The city’s effective tax rate for the 2018-19 budget year is 5.2 cents per $100 valuation more than the current rate. The current rate is 71.774 cents per $100 valuation and the new effective tax rate is 79.937 cents per $100.
In a budget workshop last week, some Orange City Council members indicated they would like to raise the tax rate even more than the effective rate. The council has a meeting at 9 a.m. to decide on a proposed tax rate.
The city of West Orange has a small increase in the effective rate because of a loss of appraisals. The current tax rate is 45 cents per $100 value and the effective rate is 45.676 cents per $100 valuation.
Bridge City had less damage than most of the other cities in Orange County. The current tax rate is 52 cents per $100 valuation and the effective rate is 52.633 cents per $100 valuation. The council there has tentatively decided to go with a tax increase up to 54.7 cents per $100 valuation.
Orange County and the cities will begin a new budget year on October 1. The elected leaders of the entities are currently working on their 2018-19 budgets. The budgets and tax rates must be approved in open public meetings. Public hearings for citizen comments on the budgets and taxes will be held for each entity.
Homeowners in Texas are eligible for several exemptions in tax valuations. They can get up to a 20 percent exemption from the appraised value on a homestead exemption. Orange County and the cities all give the full 20 percent homestead exemption.
More exemptions are available for homeowners age 65 and older and the disabled.
-Margaret Toal, KOGT-
Social Media