City Council Proposes Maintained Property Tax Rate Ahead of Public Hearing

The Richardson City Council Work Session on August 18, 2025, focused on key financial discussions, particularly regarding property tax rates and residential market values. City officials presented a detailed overview of the current tax situation, highlighting a slight decrease in the certified value of properties, which fell by 1.43% to approximately $25.7 billion after accounting for Tax Increment Financing (TIF) adjustments.

The council noted that new construction contributed about $176 million to the overall property values, a figure expected to rise in the coming years. Approximately 8% of residential accounts experienced a market value increase of 10%, a decline from previous years. Additionally, around 42.75% of residential accounts qualified for the homestead cap, indicating a significant amount of value that had been previously unaccounted for.

A notable change discussed was the increase in the senior tax exemption, now set at $160,000, providing about 33% protection against market value increases for seniors. Currently, one-third of all residential accounts belong to seniors, reflecting the demographic's growing presence in the community.

The average market value of homes in Richardson rose slightly to $483,993, while the taxable value increased by just over 6% to $411,065. The council maintained a split of approximately 58.42% between commercial and residential property values, with hopes for an upward trend in commercial investments in the near future.

Regarding the property tax rate, officials recommended maintaining the current rate of 5.4218, which is the lowest since 2005. This rate is crucial as it determines the revenue generated from property taxes, with the "no new revenue rate" allowing the city to collect similar revenue as in previous years. The council has scheduled a public hearing on the tax rate for September 8, ensuring compliance with state requirements for public notice.

Overall, the discussions underscored the city's financial strategies and the implications for residents, particularly in light of the ongoing adjustments in property values and tax rates.