Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Finance topic
No spam. Unsubscribe anytime.
Irving finance chief outlines effect of Texas HB9 business personal-property exemption on city revenue
Summary
CFO Brett Star told council a statewide change would remove about $143 million in taxable value from Irving’s rolls and reduce property-tax revenue by roughly $842,687 for fiscal 2026; staff proposed one‑time budget offsets to smooth the impact.
Brett Star, Irving’s chief financial officer, briefed council on June 25 about the fiscal impact of House Bill 9 and a related constitutional amendment proposed by House Joint Resolution 1, which would increase the business personal‑property exemption for taxable equipment and inventory.
Star said HB9 raised the exemption from $25,000 to $125,000 for business personal property (not real estate). Using 2024 appraisal data, staff estimate the measure will remove about $143,046,480 in taxable personal‑property value from Irving’s rolls, reducing city property tax revenue by an estimated $842,687 for fiscal year 2026. Star said the change largely removes low‑value accounts from the tax roll: 6,371 accounts—roughly 73% of the count—are below the new exemption threshold but represent only about 2% of total taxable personal‑property value.
Star proposed budgeting to absorb the revenue loss by funding one‑time projects or transfers (for example to vehicle or building‑replacement funds) in the current fiscal year so that ongoing operating programs are insulated when the revenue reduction takes effect January 1, 2026. Council members discussed whether to treat the reduction as a one‑time transition or to assume a permanent revenue loss when setting future budgets.
Ending: Council asked staff to include the estimated revenue reduction in the manager’s recommended budget and to present options for one‑time offsets and structural responses during the August budget retreat.
