Dallas city council settles on property tax ceiling

Dallas - In a key meeting on August 23, the Dallas City Council approved a top property tax rate of $0.7393 per $100 valuation for the upcoming 2023-24 fiscal year. According to Dallas Metro News, this represents a slight reduction from the current rate of $0.7458 for the 2022-23 fiscal year.

Though this new rate sets only a maximum limit for taxation in the 2023-24 budget, it sparked significant discussion among council members. Mayor Eric Johnson and some council members pushed for an even lower rate but did not succeed. The mayor has repeatedly expressed his support for reducing property taxes in recent weeks.

It's important to clarify that this rate is not final; it acts only as a cap and could be adjusted. The City Council will make the final decision on the rate when it approves the budget in September. Ahead of this, City Manager T.C. Broadnax unveiled a proposed budget of $4.63 billion in early August, including a general fund budget of $1.84 billion.

Council Member Paula Blackmon, who represents areas including Lakewood and a portion of Lake Highlands, argued that the higher cap gives the city more flexibility to adjust budget priorities before the rate is finalized. While Blackmon voted in favor of the approved maximum rate, she hopes the final rate for the next fiscal year will be 1.5 to 2 cents lower than the current one.

“To me, this is just an exercise—the real work begins after today,” Blackmon said at the Aug. 23. meeting. “I ask my colleagues to roll up our sleeves, and let’s really look for hard dollars to cut.”

Council Member Cara Mendelsohn, who represents northern Dallas, strongly pushed for a significantly lower maximum property tax rate of $0.683821 per $100 valuation during the discussion. She argued that because property values in the city are expected to rise considerably, a lower tax rate would provide real financial relief to property owners.

“We say, ‘We’re lowering your tax rate,’ and then we take a bow. But the residents get a higher tax bill because their property value has increased significantly,” Mendelsohn said at the meeting.

In the final tally, 10 of the 15 council members, including Mayor Johnson, voted in favor of the proposed rate. One member was notably absent. Those who voted against the rate included Johnson, Mendelsohn, Kathy Stewart—who represents most of Lake Highlands—and Gay Donnell Willis, the council member for northwest Dallas.

Following the Council's initial decision on August 18, Mayor Johnson formally asked City Manager T.C. Broadnax to reconsider and modify the initial budget proposal. The original plan had recommended a rate of $0.7393 per $100 valuation, and Johnson's request aimed to encourage a more substantial property tax cut.

Broadnax is required to present a revised budget proposal by September 1 at 5 p.m. The City Council has set a workshop for September 6 to discuss the details of the updated budget. Additionally, a public hearing is scheduled for September 20 at City Hall to gather public opinions on the proposed tax rate. These upcoming events suggest a complex and challenging path ahead as the Council grapples with tax policy and financial governance.

Credit: Dallas Metro News, City of Dallas, CBS News Texas