The 2021-22 fiscal year marks only the 12th year the Town of Westlake has assessed a local property tax. The proposed 2021-22 ad valorem tax rate is $0.16788 per $100, and this is the same property tax rate as last year. Westlake strives to hold its property taxes as low as possible for our residents and stakeholders and thus, the Town's rate continues to be one of the lowest for municipalities in the immediate area, keeping our Town in the bottom third of ALL municipalities in the State.
The FY 2021-22 proposed ad valorem tax rate is higher than this year's No-New Revenue (NNR) rate by a difference of $0.00042, but it is lower than the Voter-Approval-Rate (VAR) so no election is necessary regarding the tax rate. Since the proposed rate is higher than the NNR rate, we must note on our Public Hearing Notice (link below) that there will be a tax increase, even though our total rate will remain the same if adopted by the Town Council. This notice of increase is a requirement of the Texas Property Tax Reform and Transparency Act of 2019 (Senate Bill 2). For more information, you may find this Truth in Taxation flyer helpful regarding this act and more, provided by the Texas Comptroller's Office.
It is important to note the Town of Westlake has approved all allowable exemptions for our property owners with applicable categories set at their maximum. Property owners in Westlake will also notice additional savings on their ad valorem tax bills for the Additional Sales & Use rate of 1/2 % Town Council elected to enact, also known as the Property Tax Reduction rate. Thus, this portion of sales & use taxes collected is directly allocated to lower Westlake property taxes by including this amount in our tax rate calculations every year.
Westlake saw an increase in its property values this year from an average home value in 2020 of $1.6M to $1.8M in 2021. This will equate to an average tax levy increase of $264 dollars from last year, or a 9.74% increase. Therefore, our proposed FY22 operating budget will raise more revenue from property taxes than last year's budget by an amount of $166,978, an 6.39% increase due to the rise in property values. New property added to our tax rolls this year will raise an additional $177,235.
PROPOSED PROPERTY TAX RATE - $0.16788 per $100 (M&O rate=$0.10284; I&S rate=$0.06504)
PRECEDING YEAR'S TAX RATE - $0.16788 per $100 (M&O rate=$0.12490; I&S rate=$0.04288)
NO-NEW REVENUE TAX RATE - $0.16746 per $100
VOTER-APPROVAL TAX RATE - $0.22181 per $100
DE MINIMIS RATE - $0.22054 per $100
The no-new-revenue tax rate (formerly the effective tax rate) is the total tax rate needed to raise the same amount of property tax revenue for the Town of Westlake from the same properties in both the 2019 tax year and the 2020 tax year.
The voter-approval tax rate (formerly the rollback tax rate) is the highest tax rate that the Town of Westlake may adopt without holding an election to seek voter approval of the rate unless the de minimis rate for the Town exceeds the voter-approval tax rate.
The de minimis rate is the rate equal to the sum of the no-new-revenue maintenance and operations (M&O) rate for the Town, the rate that will raise $500,000, and the current debt rate for the Town of Westlake.