Midlothian City Council Sets Maximum Proposed Ad Valorem Tax Rate

2022 Midlothian City Council
Photo credit City of Midlothian

September 6 Special City Council Meeting For City’s Final Ad Valorem Tax For Year

MIDLOTHIAN – The Midlothian City Council voted 5 – 2 earlier this week on a proposed ad valorem tax rate for the city.

The proposed maximum tax rate approved was set at $0.663147, however, the rate proposed on the agenda by city staff was at $0.675000 (the same as last year’s rate), which did not pass.

“This is a maximum rate, and it will give us a maximum latitude for our future discussion when we will set the actual published rate,” Midlothian Mayor Richard Reno said as he introduced the agenda item. Reno and Place 1 councilmember Wayne Sibley voted against the maximum proposed tax rate that the remainder of the city council approved.

The proposed tax rate vote Tuesday night legally starts the process of determining the final adopted tax rate. A public hearing will be held on September 6 at a Special City Council meeting for public comment and the adopting of the city’s final ad valorem tax for the year.

Midlothian Finance Director Anna Honza introduced the maximum rate that was slightly higher than what passed because she said “This particular agenda item was prepared before we had our last budget workshop so I do anticipate you will want to discuss. I will say this is the maximum ad valorem tax rate that you are voting on it does not have to be the final tax rate, but it is the maximum tax rate.”

The necessity for the item was to be on Tuesday evening’s agenda was because the maximum tax rate must be published on August 18, before the city council’s next regular meeting.

Midlothian City Manager Chris Dick reminded council “This is just a legal process. You have to have a maximum rate and if you go under it that is fine, if you go over it you have to start the process over again. This is the first step in the legal process to adopt a tax rate.”

Mayor Pro Tem Justin Coffman said that while he did agree with the mayor that the tax rate proposed on the evening’s agenda would give council maximum latitude, he added “After 20 hours of going through the budget and sitting through and having the discussion about having that other tax rate I would just like to set the agreed upon tax rate….”

Reno said “make a motion” and prior to the motion Place 4 Clark Wickcliffe confirmed the current meeting in progress could be counted as hearing number one.

The motion was made for the maximum proposed rate of $0.663147 and a record vote counted.

Texas’ ad valorem tax is, in other words property tax. It is a locally assessed tax where the tax bill depends on the value of the property that is being taxed, which can include land, homes, commercial properties, among other types of applicable real estate.

According to staff notes from Tuesday night’s meeting “State law requires that a taxing unit hold a public hearing and publish a newspaper ad before adopting a tax rate that exceeds the voter approval or the no new revenue tax rate, whichever rate is lower. Since the recommended proposed tax rate will exceed the no new revenue tax rate, these legal requirements must be met.”