August 16, 2021
A lower property tax rate may be coming to Texarkana in 2022. On Monday, August 9, 2021, the City Council met and formally proposed to add this new rate to next year’s budget. A public hearing on this item takes place during the August 23rd meeting. Voting takes place on September 13.
What does this mean?
If the vote goes through, the assessed valuation per $100 will decline from 70 cents to 65 cents. The city plans to offset the savings with additional revenue expected due to new properties added to the existing tax roll.
David Orr, Interim City Manager, and Kristin Peeples, Chief Financial Officer gave a briefing on the new proposed budget for the upcoming fiscal year. The new budget includes additional taxes including $19.2 million in sales tax in addition to other revenue from the water utility company and grants of $16.1 million.
As it stands, the City Council is relying on about $17.8 million in property taxes to support the budget for the incoming fiscal year. The overall budget proposed is estimated at $109 million total revenue with expenses of $118.2 million.
During this meeting, funding for street maintenance, raises for firefighters, step increases for police officers, demolition of certain buildings, development of a small business incubator, and enhancements of the downtown area were introduced.
Although this is just a proposed budget by Texarkana, if the Council does not approve the final vote, the property tax assessment per $100 will remain in effect to be revisited in the 2023 fiscal year budget.