The City Council in League City, Texas voted to introduce a drop in the property tax rate up to $0.049 on August 10, 2021. Per the current law, everyone serving on the council has to agree on a proposed rate for the upcoming 2021-22 fiscal year with formal notice posted prior to the final vote in September.
The current property tax rate stands at $0.515 per $100 valuation, while the new proposal is about $0.039 lower. This is a no-new-revenue rate which can cause some opposition among council members. Some expressed that they wanted the rate lower due to a rise in property values and new developments on the horizon.
Pat Hallisey, Mayor of League City, expressed he wanted to lower the tax rate a full $0.10, citing, “The community needs to drill down on its budget priorities. We spend on whims, and gotta find some common ground.”
The new fiscal year’s budget includes a 116-day reserve fund which is six days more than the current policy requires and 26 more days than state law. This amount is about $1.3 million and does not earn interest. Councilmember Nick Long said, “That money should either be removed from the budget to lower the tax rate or be used to pay down debt.”
The proposed League City property tax rate agreed upon by all council members was $0.465526, the maximum for FY 2021-22. It was opposed by council members Millican and Hallisey. The vote in September will determine the final tax rate, which could be revised to a lower rate.