Collin County Appraisal District Addresses Property Tax Exemption Errors for FY '26

The Richardson City Council Work Session held on August 18, 2025, focused on significant financial implications stemming from property tax exemptions and appraisal district errors.

The meeting began with a discussion on the 100% property tax exemption applied to Northside, which is primarily occupied by students. This exemption is projected to result in a loss of over $2 million in property tax revenue for the fiscal year 2026, with $1.2 million directly impacting the general fund.

Council members expressed concern over recurring mistakes made by the Collin County Appraisal District, which failed to include necessary abatements in the tax roll for the past two years. These errors have cost the city approximately $3.2 million, with $1.9 million affecting the general fund.

In response to these issues, Todd and his team have implemented a more thorough review process for the upcoming fiscal year. They identified another error for FY 2026, where two accounts did not receive the correct 75% abatement due to an erroneous Freeport exemption. Unfortunately, this mistake was confirmed too late to amend the certified tax roll, necessitating adjustments in a supplemental roll.

To mitigate the financial impact, the city plans to reserve approximately $372,000 in anticipation of these adjustments, ensuring a net neutral effect on the budget. The finance department is also working with the appraisal district to establish additional quality control measures to prevent future errors.

The meeting concluded with a commitment to improve oversight and accuracy in property tax assessments, aiming to safeguard the city’s financial health moving forward.