Every August and September, Texas taxpayers watch local governments set property tax rates that will fund city, county and school district budgets for the coming fiscal year. The Texas Comptroller requires each taxing unit to publish two key figures: the no‑new‑revenue (NNR) rate, which would generate the same revenue as last year assuming unchanged appraisals, and the voter‑approval rate, the highest rate that can be adopted without triggering a mandatory election.

Understanding the NNR rate

The NNR rate is not simply last year’s rate. When property values rise, the NNR rate usually falls, allowing governments to collect more revenue even with a lower percentage. Officials often tout “lowering the tax rate,” but if the adopted rate remains above the NNR figure, taxpayers still pay more.

Proposed rates in Texas municipalities

Several cities have filed proposals that exceed their NNR calculations:

• McKinney – proposes $0.417876 per $100 of taxable value, up from $0.412284 and above the NNR rate of $0.409212. The council will consider the budget on September 1.
• Mineral Wells – seeks $0.7007075 per $100, a 22.55% jump that would raise the typical homeowner’s city bill from $535.95 to $1,027.59, well above the NNR rate of $0.5931530.
• Dallas – suggests a slight reduction to 69.78 cents per $100, but the $5.66 billion budget would still generate $84 million more in property tax revenue, largely from new construction.
• San Antonio – plans to increase the rate to 56.288 cents per $100, exceeding its NNR rate while staying under the voter‑approval threshold.
• Fort Worth – proposes $0.7020 per $100, up 3.2 cents and above the NNR estimate of $0.6704.
• Princeton – council approved an NNR rate of $0.445102 but also a higher rate of $0.549999, a near‑25% increase.

In contrast, some jurisdictions are moving in the opposite direction:

• Tarrant County – Judge Tim O’Hare’s preliminary budget sets the county tax at $0.1860 per $100, below the NNR rate, marking the fourth consecutive year of lower rates and roughly $1.2 billion in cumulative savings.
• Grapevine – proposes a rate of $0.226817 per $100, exactly matching its NNR figure and about 4.4% below the current rate.

Why taxpayers should pay attention

Even when a rate matches the NNR benchmark, new development can add revenue because the calculation excludes newly taxable property. Residents are encouraged to compare each proposed rate with the published NNR figure, attend public meetings, and ask officials why the NNR rate is not sufficient.

How to get involved

Taxpayers can locate their local taxing units and proposed budgets on the Texas Comptroller’s property tax website. The Comptroller requires most units to publish both the NNR and voter‑approval rates alongside the proposed rate and meeting dates. Attending city council, commissioners court or school board meetings—either in person or via livestream—provides an opportunity to voice concerns and hold officials accountable.

By focusing on the NNR rate rather than headline tax‑rate changes, Texans can better assess whether their property tax bills are truly increasing and demand responsible budgeting from their elected leaders.

Original reporting: Texans for Fiscal Responsibility — read the source article.