Local NewsTaxes & SpendingNortheast Tarrant County Cities Adopting Rates at or Below No-New-Revenue Rate

Colleyville, Keller, and Southlake are adopting property tax rates at or below the no-new-revenue rate, meaning lower property tax bills for many residents.
August 23, 2022
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Three neighboring cities in northeast Tarrant County are adopting property tax rates for the upcoming fiscal year at or below the no-new-revenue rate.

Colleyville, Keller, and Southlake have been following this trend for several years and the plan for Fiscal Year (FY) 2023 is no different.

The no-new-revenue rate, according to the Texas Comptroller’s Office, would produce the same amount of taxes if applied to the same properties taxed in both years.

Keller Mayor Armin Mizani told The Texan, “At a time where many taxpayers are struggling to keep up with the costs of inflation and the rise in property valuations, it has become more important than ever for elected leaders to act on taxpayer’s call for help — to not just simply lower the tax rate, but to actually offer real tax relief by getting down to or below the effective or no new revenue rate.”

Southlake’s mayor, John Huffman, believes it is the city’s duty to offer tax relief whenever possible. “It is our fundamental duty to our residents to try to cut taxes. It has been a priority in Southlake.”

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Huffman added that he is grateful that the city is in a financial position to continue cutting taxes while maintaining healthy fund balances and paying for the majority of infrastructure projects in cash.

“We are doing a true tax rate of ‘no new revenue’ except for new growth throughout the year. If we ever need additional tax money, we will let the citizens know exactly why we need it and the taxes need to justify the rate,” Colleyville Mayor Bobby Lindamood emphasized.

This is the fifth year in a row that Keller and Colleyville have adopted rates at or below the no-new-revenue rate and the fourth year for Southlake. Keller and Southlake also have adopted the maximum homestead exemption of 20 percent.

Keller’s rate is at a 30-year low, according to city staff. Sharen Jackson, Southlake’s chief financial officer, told The Texan that Southlake’s reduction is the second largest in a decade.

The Tarrant Appraisal District, not the cities themselves, sets property appraisal values. State law caps a property appraisal increase to 10 percent on a homestead.

With the recent increase in population in the state, Texans can expect to see increases in their property values. The Dallas-Fort Worth region has seen a 23.6 percent increase in market prices of homes.

Colleyville, Keller, and Southlake experienced valuation increases. Keller’s overall property valuation increased by 11 percent while Southlake’s increased by 10.3 percent. Colleyville saw property values increase by just under 10 percent.

CityCurrent Tax RateProposed Tax Rate% increase in valuationsAvg. Residential ValueAvg. Residential Bill
Colleyville$0.291778$0.2656189.8 %$650,119$1727
Keller$0.395$0.35411 %$387,603$1374
Southlake$0.390$0.36010.3 %$882,302$2541

If the cities chose to keep the same property tax rate as the previous year, the increased valuations would ultimately result in a higher tax bill for property owners.

Because the average home value includes new construction that isn’t included in the no-new-revenue rate, sometimes the estimated average property bill may be higher than the previous year. That is the case in Southlake, Jackson explained. Newly constructed homes are valued between $1 million and $2 million in value and that drives up the overall average home value.

However, she noted that existing property owners’ bills should be flat or even have a slight reduction.

City taxes are only a portion of a property owner’s bill, usually comprising about 15 to 18 percent, Huffman explained. Property owners also pay school district taxes, county taxes, community college district taxes, and often hospital or water district taxes as well.

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Kim Roberts

Kim Roberts is a reporter for the Texan in the DFW metroplex area where she has lived for over twenty years. She has a Juris Doctor from Baylor University Law School and a Bachelor's in government from Angelo State University. In her free time, Kim home schools her daughter and coaches high school extemporaneous speaking and apologetics. She has been happily married to her husband for 23 years, has three wonderful children, and two dogs.

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