by Nicole Bradford
Pearland City Council on Monday voted to propose a tax rate of 63.5 cents per $100 of property value for the fiscal year beginning Oct. 1.
“We’re not setting the tax rate, just the playing field,” Mayor Kevin Cole said. “Once we set (a proposed rate) we can go below it but not above.”
City staff had recommended a maximum rate of 65.5 cents, the current year’s tax rate, but built a draft budget using the 63.5-cent rate. Council instead opted to drop the maximum proposed rate by two cents.
“I don’t think we need to keep the door open to go any higher than that,” Councilman Tony Carbone said.
The council on Monday also voted to set public hearings on the budget and tax rate for Sept. 9 and Sept. 23.
Discussion will continue during another planned session on Monday, Aug. 19, at City Hall, 3519 Liberty Drive.
While the proposed tax rate is below the current year’s rate, it is above the no new revenue rate of approximately 60 cents. Once known as the effective rate, the no new revenue rate is the rate that generates the same revenue from the same properties taxed the year before. The proposed rate means an average homeowner would pay roughly $60 more yearly.
