Board of Directors Budget Workshop


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Meeting Date: 08/13/2018  

SUBJECT MATTER:
Receive, consider and accept a report regarding the 2018 effective tax rate and rollback rate; 
FISCAL IMPACT:
N/A
BACKGROUND:
Information has been provided by the Montgomery County Tax Assessor’s Office regarding The Woodlands Township’s taxable property values and tax rates for the 2018 tax year (2019 budget year).  The information is summarized below.  Additional data is provided in the attached documents and in the 2019 Preliminary Budget binder.
 
  Montgomery County Harris County Total
2018 Taxable Values $17,518,837,062 $2,621,129,778 $20,139,966,840
2017 Taxable Values $17,169,113,560 $2,518,855,136 $19,687,968,696
Total increase in taxable property values $349,723,502 $102,274,642  
$451,998,144
 
       
2018 taxable values attributable to new properties $95,494,021 $139,872,929 $235,366,950

2017 adopted tax rate (2018 budget year) = $0.2300          
2018 effective tax rate (2019 budget year) = $0.2273
2018 debt service rate = $0.0170
2018 rollback rate = $0.2439
 
The effective tax rate is the rate that would produce the same amount of property tax revenue for the 2018 and 2019 budget years if applied to the same properties taxed in both years.
 
The debt service rate is the rate that produces the amount of revenue needed to satisfy debt obligations secured by property tax revenue. 
 
The rollback rate is the total of the effective maintenance and operations rate (the portion of the tax rate that is not used for debt service) multiplied by 8%, plus the debt service rate.  For the 2018 tax year, the tax assessor has calculated the effective maintenance and operations rate to be $0.2101.  This rate multiplied by 8% = $0.2269.  Adding the debt service rate of $0.0170 produces a rollback rate of $0.2439.  If the property tax rate is set above the rollback rate, voters in the taxing unit may petition for an election to limit the tax increase to the rollback rate.
 
Please note that the Harris County taxable value information for the Village of Creekside Park is based on May 2018 preliminary values.  Certified values from Harris County will not be available until August 24. 
 
The purpose of this agenda item is only to accept the tax rate worksheets prepared by the Montgomery County Tax Assessor’s Office.  The proposed 2018 tax rate for the Township’s 2019 budget will be discussed during the budget workshop meetings and voted on as a separate agenda item.

RECOMMENDATION:
Receive and accept the 2018 tax rate worksheets prepared by the Montgomery County Tax Assessor’s Office.
Attachments
2018 Property Tax Rates for The Woodlands Township
2018 Tax Rate Calculation Worksheet


    

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