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How general and rural levy limits and growth-reduction factors affect county revenue
Summary
The webinar explained levy categories (general basic, rural basic, supplemental and debt service), recent legislative changes restricting the prior extra‑notice override, and the growth‑based reduction factors that can lower a county’s allowable levy growth.
Carrie, Department of Management contact, reviewed how counties determine maximum levy rates and the legislative changes that now constrain growth capture.
She explained that general and rural basic levies are the most general county levies. "Your general basic Levy rate limit was $3.50 per thousand and your rule basic Levy limit was $3.95 per thousand," Carrie said, noting that previous law allowed an extra‑notice method to exceed those caps but that recent legislation removed that option. Now, the maximum basic levy is calculated in part from what was levied in the prior year and is subject to a growth-reduction factor tied to taxable-value increases.
Carrie described the reduction-factor tiers: if taxable growth is under 2.75%, no reduction applies; if growth is over 2.75% but under 4% a 1% reduction factor is applied; over 4% but under 6% triggers a 2% reduction; and growth above 6% triggers a 3% reduction. Using Dallas County as an example, she showed that a county with about 7% valuation growth faced a 3% limitation that reduced the revenue growth the county could capture unless the county sought voter approval.
She also reviewed supplemental levies (general and rural supplemental), their restricted purposes (elections, FICA/IPERS, health insurance, aviation contributions), and the debt-service levy (used for general-obligation debt service and specified long-term obligations). Carrie reminded attendees that certain purpose-specific levies—such as the Pioneer cemetery levy (6.75 cents per $1,000) and emergency medical services levies (authorized under chapter 422D)—exist outside the basic-levy calculations.
The presentation did not record any formal actions or changes to law; it summarized current statutory rules and practical examples attendees can use when modeling their fiscal-year 26 levy calculations.
