Fort Worth proposes tax increase as property values cool. Here’s how they’ll spend the money
For the first time in 30 years, Fort Worth’s property tax rate could be going up.
City staff are recommending raising the city’s property tax rate from 67.25 cents per $100 of value to 67.73 cents per $100 of value. The city hasn’t raised its tax rate since 1995.
The proposed rate is just below the “no-new revenue” tax rate, which is the tax rate that would generate the same amount of revenue in 2025 from properties that were on the tax rolls in 2024.
The city estimates this will translate to a $60 increase for the average Fort Worth homeowner. The owner of a $300,000 home with a homestead exemption would pay $1,625.52 in city property taxes.
The increase in the tax rate will bring in an additional $9 million, which will almost exclusively go toward road maintenance. The money will be used in lieu of the proposed $9.22 monthly street fee that was scrapped in May over concerns about the cost to residents.
The money will allow the city to maintain 33 miles of road instead of replacing it at an estimated cost of $50 million, said transportation department head Lauren Prieur, speaking at a council work session Tuesday.
The tax rate increase comes during a slowdown in growth of property values. Property values increased roughly 5% over the past year compared to 15% between 2022 and 2023.
The value of new construction ticked up slightly, from $3.2 billion in 2023 to $3.5 billion in 2024. However, the value of existing properties increased $2.6 billion in 2024 compared to a $12.6 billion increase in 2023.
Because of the slow down in growth, the city will cut back on filling open positions.
Fort Worth’s police department is only getting one new position in the proposed budget compared to the 106 added in last year’s budget cycle. Similarly, the fire department is getting no new employees in the proposed budget compared to 76 positions authorized in the last budget cycle.
The budget also increases the city’s minimum wage from $15.75 an hour to $16.07 an hour. Several council members, including District 8 council member Chris Nettles and District 6 council member Jared Williams, have pushed for a $20 per hour minimum wage, saying its a small step toward making sure city employees can afford to live in Fort Worth.
However, the city has argued this could add millions to the budget and is instead proposing a $500,000 study to look at how the city pays its employees and make recommendations for any changes.
The council will discuss the budget over the next month before voting whether to approve the package on Sep. 17.
This story was originally published August 13, 2024 at 4:21 PM.
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