The City of Kaufman will look at the possibility of another tax reduction for the upcoming year, City Manager Michael Slye said. “We’re going to have that discussion,” said Slye. The council has a socially-distant retreat Thursday and Friday to discuss city priorities.
Last year, appraisals in the city and county skyrocketed, and the city dropped the property tax rate from .898651 per $100 valuation to .848651 per $100 valuation, a five-cent decrease.
“The council is pretty proud of that,” Slye said. “We kind of lead the charge.”
He said reducing the rate early during the budget season put pressure on the county to do the same. The county dropped the tax rate from 59 cents per $100 valuation to 53 cents per $100 valuation last year, but still brought in an estimated $4.2 million, or an 8 percent increase, in revenue.
The Herald last week reported the city tax rate dropped about a penny, but that was based on the effective tax rate, not the actual rate. In the meantime, local property valuations have jumped for the second year in a row.
Kaufman valuations saw a jump from $359,148,753 net taxable valuation in 2018 to $445,679,500 net taxable valuation in 2019, according to central appraisal district reports. This year’s preliminary valuation is $512,436,953 for 2020. The net taxable income may be less after protests and exemptions.
The final valuation used to formulate the city budget and set the tax rate will not be finished until later this summer.