AMARILLO, TX (KFDA) - As Amarillo grows and new development begins, the city is starting to bring in more tax money without raising tax rates.
An increase in effective tax rate has been approved in potter county and proposed in Randall county and the city of Amarillo.
The property tax rate you pay will not be any different, but homeowners will be paying slightly more money.
That's because the value of homes is going up.
"What's advertised right now is to set the rate exactly the same next year as it is this year, which because values are going up would generate more revenue," said Bob Cowell, Deputy City Manager for the City of Amarillo.
The tax rate as it is now - $0.35072 per $100 of taxable property value - is not changing
But because property values are going up, taxes for the average home will increase by $14.89 this coming year.
This will generate 3.24% more revenue for the city's general fund budget than what was collected last year.
"Based on increased value and new development, if you keep the tax rate the same as it was the previous year you will generate that much more revenue, that 3.24% number," said Cowell.
The extra revenue will go straight into the city's operating budget, and will not affect the capital improvement projects proposed to city residents for a vote this November.
"This rate again really is for the operating portion of the budget, not for those capital improvements," said Cowell. "So this is what pays salaries and just routine kinds of things that we do, and generally the council felt, as did the city manager, that we can take care of those requirements with the existing rate as it exists."
Potter County recently adopted a 3.3% increase in effective tax rate, and Randall County proposed an increase of 2.14%.
Amarillo ISD and Amarillo College will not increase their effective tax rates for next year.
There are two public hearings about the city's proposed increase set for August 30th and September 6th during the regularly scheduled city council meetings at 5 p.m. in City Hall.