Commissioners Court approves 8% tax rate increase for 2015-2016

By: Jose G. Landa, Eagle Pass Business Journal, Inc., Copyright 2015

Maverick County Commissioners Court unanimously approved a proposed tax rate not to exceed the state law rollback rate of 8% at their meeting held on Monday, August 10, 2015.

During discussion of Agenda Item No. 39 calling for the possible action on proposing a tax rate for 2015 and authorization of publication of the proposed tax rate in a local newspaper on August 16, 2015, Commissioners Court agreed to increase County taxpayers ad valorem property taxes to the maximum amount allowed under state law (8%) of $0.62354/per every $100 valuation without having to go to a rollback election by County taxpayers.

Commissioners Court followed what appears to be the trend among local governmental entities to increase taxpayers ad valorem property taxes by the maximum amount of 8% to avoid a rollback election by taxpayers while attempting to maximize the total revenues raised from the County certified tax roll established by the Maverick County Appraisal District for 2015-2016. In addition to raising taxes by up to 8% for every $100 valuation, Maverick County taxpayers are going to be taxed at the new higher appraisals, some as high as 26% to 29%, on their residential and commercial properties as established by the Maverick County Appraisal District for 2015-2016, causing a second tax increase whammy to taxpayers. Maverick County and local governmental entities possibly may not be doing a thorough and extensive analysis of the budget to find where cuts may be done to avoid having to increase the tax rate by the almost automatic imposition of the maximum 8% allowed by law without a taxpayer rollback election.

Commissioners Court noted that the final exact tax rate increase for 2015-2016 may be less than the maximum 8% allowed by law without a rollback election once the final budget numbers for fiscal year 2015-2016 are approved by them.

Maverick County Judge David R. Saucedo stated Commissioners Court in the past has approved a tax rate increase up to the maximum 8% allowed by law without a tax rollback election, but that the final tax rate increase may be less than the 8%. “We do have to do things in anticipation of what’s transpired in the County in the past year, so when you look at it, if indeed we do go out for a loan, your INS fund does go up, so you’re required to get a tax rate increase because you’re paying that note within one year. It is in the realm of possibility that if we don’t have a deal made, then the taxes will have to go up in order to pay off that loan because that’s a requirement. It is not anything that we can get out of. The rate that we’re giving is the rollback rate which means that we can’t go above that rate. We’re hoping that we don’t have to do that but we have to prepare like we have to,” said Judge Saucedo.

During discussion on Agenda Item No. 39 concerning the proposed tax rate for 2015-2016, Maverick County Tax Assessor Collector Isamari Sanchez Villarreal, Maverick County Legal Counsel Woody Wilson, and Maverick County Auditor Sandra Watkins presented how the proposed tax rate numbers were being calculated utilizing a realistic number in order to not burden the taxpayer with the entire rollback amount of 8% allowed by law.

Another agenda item approved was No. 38 regarding the certification of the Maverick County Appraisal District certified tax roll for 2015-2016 pursuant to Section 26.04 of the Texas Tax Code from last year’s roll while establishing a decrease of Oil and Gas mineral properties by $100 Million from the previous year. County Tax Assessor Collector Isamari Sanchez Villarreal presented the Maverick County Appraisal District certified tax roll for 2015-2016.

“As you know this is the proposed 2015 effective tax rate. This is what we have come up with and this is the proposed tax rate and also the rollback tax rate,” said Villarreal.

County Judge Saucedo asked if the 2015 Tax Anticipation Note Series being considered still kept the County’s figures below the level needed to balance the numbers. “Yes,” answered Villarreal.

“Did the taxable value go up or down,” asked Judge Saucedo. “It went up,” replied Villarreal.

After discussion, Commissioners Court unanimously approved accepting the information as presented by the Maverick County Tax Assessor Collector and to publish the effective tax rate of $0.501593/$100 valuation and the rollback tax rate adjusted for sales tax at $0.621365/$100 per valuation, and certified the tax collection rate of 95% and approved the certified Maverick County Appraisal District tax roll for 2015-2016 as presented, pending legal review.

On agenda item No.39, Commissioners Court approved setting a proposed tax rate for 2015 and authorized the publication of said proposed tax rate to be published in a newspaper on August 16,2015.

Commissioners Court also approved setting the tax rate increase not to exceed the rollback tax rate of $0.621365/$100 per valuation.

“This is not the final number,” said Judge Saucedo.

Commissioner’s Court also unanimously approved the public hearings on the proposed tax rate increase to be held on August 27, 2015 at 5 P.M. for the first public hearing and on September 4, 2015 at 5 P.M. for the second public hearing at Maverick County Commissioners Courtroom, located at 500 Quarry Street, Eagle Pass, Texas.