During the Amarillo City Council Special Meeting on September 16, 2025, a significant discussion centered on property tax regulations and their implications for residents. The council addressed questions regarding the upper limits on property tax assessments and rates, revealing that the city charter caps the maximum tax rate at $1.50 per $100 of assessed value, despite state law allowing up to $2.50. Currently, Amarillo's tax rate stands at 43.07 cents.

Council members emphasized the complexities of property valuation and taxation, noting that while the city can only increase the maintenance and operations budget by 3.5% without voter approval, the overall assessment of property values can fluctuate significantly. One council member pointed out that some properties in Amarillo have seen staggering increases in assessed value, with some neighborhoods reporting rises of up to 349% over five years.

The discussion also touched on the "circuit breaker" law, which limits annual increases on property values for homesteads to 10% and investment properties to 20%. This law, set to expire in 2027, is governed by state law and not under the city's jurisdiction, leading to concerns about future tax burdens on homeowners and renters alike.

Council members expressed apprehension about the compounding effects of rising property taxes, which not only impact homeowners but also tenants and small businesses. The meeting concluded with the council moving forward to adopt the city budget for the 2025-2026 fiscal year, which aims to maintain effective public services amidst these financial challenges.