This ordinance sets the ad valorem tax rate for the tax year 2019. This rate is based on net taxable property values at January 1, 2019, to assess taxes for collection during fiscal year 2020. The rate of $0.42000 per $100 valuation is the proposed tax rate for 2019 which is the same rate as the prior year.
The tax rate includes a portion to fund existing debt service, and a portion to fund maintenance and operations of the City. The 2019 effective rate is $0.413261, and the 2019 rollback rate is $0.430202 and includes a sales tax for property tax relief adjustment of $0.033267. The proposed rate of $0.42000 is 1.63% higher than the effective rate. A homeowner with an existing average taxable homestead value of $285,357 will pay approximately $30 more in taxes than in the previous year. The total tax bill for an average existing home in Georgetown will be $1,198, compared to the 2018 average tax bill of $1,168. The average existing taxable homestead value grew 2.6% in 2019.
State law requires governments that levy tax rates higher than the effective rate hold two public hearings, which were held on September 3, 2019 and September 10, 2019. State law also requires the language in the ordinance to compare the maintenance and operations rate on a $100,000 home. Using this method, the increase is $6.79 for the year.
State law requires at least 60 percent of voting members pass the tax levy ordinance. This is a record vote, meaning each Council member must vote individually. State law requires specific language for the motion to adopt the rate:
I move that the property tax rate be increased by the adoption of a tax rate of 42 cents which is effectively a 1.63 percent increase in the tax rate.