A disaster declaration now allows local governments to raise property taxes up to 8% above the no-new-revenue rate without triggering an election under Texas law.
KERRVILLE, Texas — Kerrville city leaders voted unanimously Tuesday night to approve a resolution that could pave the way for a property tax increase to help pay for recent flood damage.
While no tax increase has been enacted, several attendees at the city council meeting left with the sense that one is inevitable.
Under Texas law, local governments can raise property taxes up to 3.5% above the no-new-revenue rate without triggering an election. However, because a disaster declaration is in place, that threshold now extends to 8%.
Last week, Kerr County commissioners approved a similar resolution, allowing County Tax Assessor Bob Reeves to calculate how much revenue a potential tax increase could generate. On Tuesday, city leaders followed suit.
“This is not setting a tax rate. This is just providing you with the information to do your business,” Reeves told council members during the meeting.
Five people signed up to speak against the resolution before the vote. Mayor Joe Herring Jr. assured the public that the city would remain transparent throughout the process and emphasized that the vote did not commit the council to raising taxes.
“I pay taxes. Everyone here pays taxes,” Herring Jr. said. “I don’t want my taxes to go up. I also didn’t want a flood to come down the river and kill 120 people.”
Still, the residents who spoke expressed frustration, though few seemed surprised.
“It’s obviously a ball rolling down the hill,” said George Baroody, who claims the council has already made up its mind prior to the vote. “Property taxes are an expense to people. They are not revenue to the government — they’re an expense. Any slight increase means housing costs more.”
Garrett Baxley, 21, who has spent nearly half his life in Kerrville, also spoke during public comment. He said he fears that rising taxes could keep him from being able to buy a home in the town where he hopes to one day raise a family.
“We love it here. It would just make it a lot harder to live here,” Baxley said.
City leaders are expected to continue the discussion during a budget workshop next Tuesday.