Property Taxes

11 Jan 2023 The maximum potential increase in ad valorem tax revenue this next year will be $15,750

11 jan 2023 The two key components of the city tax are the property evaluation and the tax rate. These two multiplied together yields the tax revenue. For instance, the adopted tax rate for 2022 is 0.657254/$100 and the tax value is $73,954,920 and these two multiplied together equals $486,071. This is our projected tax revenue.

There are several allowable options to setting the rate for the city. The first option is the No New Revenue rate, NNR. This rate in by simplistic definition utilizes the previous years’ revenue divided by the current years’ property evaluations. We saw significant increases in the property evaluations this year and thus this rate decreased significantly. The allowable 2022 NNR was $0.557488/100.

The next option is the Voter-approval Tax rate. This is aa very involved calculation, but essentially is a maximum increase of 3.5% plus the unused increases from the previous 3 years. These percentages are based upon last years revenues, not in the current tax evaluations. The city chose this method and utilized the maximum increase. This increase utilized the maximum increases from the previous two years. The 2022 Voter-approval Tax rate is $0.657254/100. This rate is the lowest it has been since 2011. Last year the tax rate was $0.697886/100.

The third option is called the de minimis rate. It is used to essentially generate an additional $500,000 in revenue. I do not know the rules of adopting this rate, but it practically doubles the revenue generated from ad valorem taxes. The allowable 2022 de minimis rate is $1.233957/100.

For comparison with the other taxing districts within the city and only considering the portion collected from the citizens of Ranger, the following are the estimated revenues for those districts:

City of Ranger $486,071

Ranger ISD. $632,018

Ranger Jr College $210,134

Eastland County. $266,977