Item Coversheet


CITY OF KYLE, TEXAS

Approve a Resolution Directing the City Manager & Director of Finance to Calculate Property Tax Rates for FY 2021 Using 8.0% Cap Instead of 3.5% Cap

Meeting Date: 7/7/2020
Date time:
7:00 PM

Subject/Recommendation:

Approve a Resolution finding City of Kyle's jurisdictional area affected by the disaster declared by the Governor of the State of Texas related to COVID-19 health pandemic which continues to have an economic impact on Kyle residents, businesses and City operations and to direct the City Manager and the Director of Finance to develop the City's proposed budget and property tax rate calculations for Fiscal Year 2021 based on a 8.0 percent rate cap instead of a 3.5 percent rate cap as allowed under Senate Bill 2.  ~ J. Scott Sellers, City Manager

Other Information:

Under a statute added by Senate Bill 2, a City Council may direct its designated officer or employee to calculate the voter-approval tax rate in the manner provided for a special taxing unit (an 8 percent rate, instead of a 3.5 percent rate) if any part of the city is located in an area declared a disaster area during the current tax year by the governor or by the president of the United States. Tex. Tax Code § 26.04(c-1). The designated officer or employee shall continue calculating the voter-approval tax rate using 8 percent instead of 3.5 percent until the earlier of: 3 1. the second tax year in which the total taxable value of property in the city exceeds the total taxable value of property taxable by the city on January 1st of the tax year in which the disaster occurred; or 2. the third tax year after the tax year in which the disaster occurred.

 

This item was discussed during the City Council Budget Worksession #1 held on June 13, 2020.  Staff recommends approval of the Resolution.  


Legal Notes:


Budget Information:





ATTACHMENTS:
Description
Resolution - Property Tax Rate Cap Deferral for FY 2021