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| Magnolia hoping for no tax increase |
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As the new fiscal year approaches, the City of Magnolia is close to finalizing its 2011-12 budget and adopting its tax rate. Council members are hoping to have no tax increase. Mayor Todd Kana said during budget workshops council members have established that expenditures should be $170,000 less than revenue. He added that the projected revenue for the upcoming fiscal year will be slightly higher than last year’s revenue. The 2011-12 budget in the works does not include a tax increase, according to Kana. The current tax rate is 49 cents per $100 valuation. However, Kana said because there has been an increase in the tax base, the city will see an increase in revenue because the amount of taxes collected will increase. In the 2010-11 fiscal year, the tax base was $100,349,603. For the upcoming fiscal year, the tax base will be $105,486,963. The city also gained in total number of properties. The taxable value on new improvements is $1,639,442. “Even at the same (tax) rate, there is a higher evaluation,” he said. “Tax collections will increase because values increased.” The city held a public hearing on Aug. 19 to discuss the proposed tax rates. According to the agenda, individual taxes may increase at a greater or lesser rate or decrease, depending on the change in the taxable value of property in relation to the change in taxable value of all other property and the tax rate that council members choose to adopt. The average taxable value of a residence homestead within the city limits last year was $106,340. Based on last year’s tax rate of 49 cents per $100 valuation, the amount of taxes imposed on the average home was $522.55. The average taxable value of a residence homestead in the city limits this year is $103,518. If the governing body adopts the effective rate for this year of 47 cents per $100 valuation, the amount of taxes imposed on the average home would be $483.22. However, the city could impose a tax rate of 67 cents per $100 valuation. The amount of taxes on the average home would be $689.84. City Administrator Paul Mendes said the city would be able to raise taxes to 67 cents because of the $2 million loan the city received in order to move and prepare utilities along FM 1774 for the FM 1774 widening project which will be funded by the Texas Department of Public Transportation. Mendes said, however, that council members are working very hard not to impose a tax increase. The city will hold a second public hearing on Aug. 23 at 5 p.m. in the Sewall Smith Council Chambers located on Buddy Riley Boulevard. A special city council meeting will be held Aug. 31 to finalize and adopt the budget and tax rate.
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written by RichH, August 23, 2011
I feel that working hard to see to it that there are no tax increases is very commendable. I am sure the residents really appreciate this very much. I think the comment that revenues will go up because home values increased should be taken into consideration when determining how much those tax rates will be. I hope that you will keep us informed.
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written by Logans_run, August 30, 2011
Values increased? Not where I am. I have had my place on the market for over one year and everything indicates that prices in the area are dropping.
... written by Todd Kana, August 31, 2011
Values did not increase, if you look at the article they decreased on the average home by almost $3000. There was some confusion in regards to increased tax revenue versus increased values. The total value has increased presumably because of an increase in the number of taxable properties and/or their improvements. The statement attributed to me above in regards to increased evaluations was directed at the total value of the city, not individual properties on average.
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