Council keeps property tax rate unchanged

The Farmers Branch City Council voted unanimously Sept. 17 to keep the city’s property tax rate at $0.5435 per $100 of taxable value, the same rate as last year. Higher property values and new construction, however, mean the city expects to collect more property tax revenue in the coming fiscal year.

At the adopted rate, the city expects the property tax levy to generate about $3.23 million more than last year’s budget, a 6.24% increase. About $818,794 of that additional revenue is expected to come from new property added to the tax roll.

The difference between an unchanged rate and higher tax revenue prompted questions during the brief special called meeting.

State-required language in the council’s motion described adoption of the $0.5435 rate as an effective 6.73% increase. Council member Roger Neal asked Finance Director Jay Patel to explain.

“We’re adopting the same rate as last year, but it’s effectively a 6.7% increase in rate,” Neal said. “Could you help me understand that?”

Patel said the difference is primarily the result of higher property values and new construction.

The 6.73% figure does not mean the city raised the $0.5435 rate by 6.73%. It compares the adopted rate with the city’s lower no-new-revenue rate of $0.509250 per $100 of taxable value. The no-new-revenue rate is a state calculation used to show what rate would produce about the same revenue from properties taxed in both years.

Keeping the same tax rate also does not guarantee an individual property owner’s city tax bill will remain the same. If a property’s taxable value rises, the bill can increase even when the rate does not.

Mayor Terry Lynne said the city’s taxable value has grown sharply over the past decade. He said Farmers Branch had about $3 billion in taxable value when he joined the council in 2016 and is now at about $10.5 billion after qualified exemptions.

The Sept. 17 vote was the only regular agenda item on the special called meeting agenda and completed the city’s annual tax-rate process. Ordinance 4016 accepted the 2026 appraisal roll and set the tax rate for fiscal year 2026-27.

Council members Lupe Gonzalez, Tina Bennett-Burton, David Reid, Elizabeth Villafranca and Roger Neal all voted for the $0.5435 rate.

_{Local News Matters.}