Governor Greg Abbott’s refusal to freeze property values amidst the COVID-19 pandemic has affected not only the property owners, but also local governing entities that rely on property taxes to operate.
Governor Abbott had stated, “The local taxing entities are going to be required to have best practices to reduce their property tax rate so that it will not be punishing to these property owners.” This puts the responsibility of tax property relief on each taxing entity across the state.
In Freestone County, that includes four school districts, four municipalities, two hospital districts, and the county government.
Here is what a few of them had to say about the task at hand.
City of Fairfield
Fairfield City Administrator Nate Smith explained a bit on the timeline for the City, with the certified valuations not coming from the appraisal district until July.
Smith mentions that, “Preliminary numbers put the city 10 percent higher on taxable values than 2019.”
The process of selecting a tax rate begins with the budget process over the summer, and depends on variables that must be determined before the Mayor and Council can decide any rates.
Smith concludes with a reminder, “The City of Fairfield has continued to have not only one of the lowest property tax rates of any city in our area, but for cities our size across the state.”
Wortham Independent School District
Wortham ISD Superintendent/CEO Melissa Bosley explains her thoughts on the property tax issue and its impact for Wortham ISD.
“Under HB3, Wortham ISD’s M&O tax rate will be lower. In theory, if property values remain the same, State Funding will make up the difference due to the lower M&O tax rate,” Bosley explains.
M&O is the maintenance and operations tax rate at a school district.
When asked about what the district is doing Superintendent Bosley states that, “We are monitoring the situation and keeping a close eye on our budget and future budgets.”
She includes that Wortham ISD is very frugal with their funds and plans to continue to be so, and they have a healthy fund balance to assist if needed.
Fairfield Hospital District
Fairfield Hospital District (FHD) Administrator Tony Price expressed disappointment in the Governor Abbott and Lt. Governor Dan Patrick before pointing out, “A State freeze back to the 2019 values would have been wise and compassionate at this tragic time.”
He continued, “However, I do realize that the State has a strong interest in requiring local governmental entities to impose higher local values which reduces the State’s financial obligation to our citizens.”
The FHD Board has requested a budget to provide as much 2020 tax rate relief as possible, while acknowledging, “We believe that a majority of our citizens desire to keep Freestone Medical Center operational for our community,” explained Price.
Price concludes by pointing out that, “The FHD Board believes that this is a time to understand and support the citizens by proposing a tax rate that will not make economic impact more difficult.“
Click here to read about the annual property tax process for local governing entities.