Homeowners in Tarrant County could save money on their property taxes if the county adopts a lower tax rate.

Last year passed the largest tax cut in yearsThe new budget proposal would lower the tax rate even further, to 18.75 cents per $100 of a home’s taxable value.

Even at the current tax rate, we are “by far the cheapest” of the six largest counties in Texas, County Administrator Chandler Merritt told county commissioners on Thursday.

So how much could residents save at an even lower rate?

The average taxable value of a single-family home in Tarrant County is about $277,000. The average annual tax bill for that home would be about $519 with the new proposed rate. That’s $35.70 less than last fiscal year.

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County Tarrant

This $519 bill includes available property tax exemptionsthat reduce the taxable value of a home by a certain percentage. In June, Tarrant County maxed out its property tax exemptions at 20%.

County taxes make up a small portion of a resident’s property tax bill. School district and city taxes take up a much larger part.

The Tarrant County District Court is expected to vote on the new tax rate on September 17, along with a vote to approve the proposed budget for fiscal year 2025.

The commissioners received an overview of this budget on Thursday morning. With a total amount of around 846 million dollars That’s $50 million less than the budget for fiscal year 2024..

The decline in revenue was due to a combination of several factors, said Helen Giese, director of budget and risk management.

“We have introduced the 20% property tax exemption. We have reduced the tax rate,” she said.

In addition, the net tax value of real estate in Tarrant County remained unchanged compared to the previous year.

The budget proposal cuts the county’s pension rate — the amount the county sets aside to pay retirees — saving $24 million, Giese said. The county had previously overfunded its pension fund and will now cut that contribution to the minimum required rate, plus some extra money for cost-of-living increases for retirees.

The budget also cuts funding for the defense of the indigent by several million dollars, the money used to pay lawyers for accused persons.

This does not mean a reduction in funds for the defense of those in need, because it is additional money that is not being used, Giese explained to the commissioners.

“The Budget Office understands that we have an obligation to pay for the defense of those in need, and we are making sure we have money available to do so,” she said.

Despite the decline in revenue, the budget is balanced, say district employees.

This is the last budget of Democratic County Commissioner Roy Charles Brooks after 20 years on the Commissioners Court. He congratulated the staff on their work, but warned that further tax cuts could damage the social security systems.

“I see the writing on the wall, and we’re going to hit that wall,” Brooks said. “We’re going to face challenges in the future in promoting the common good.”

The new budget does not provide any funds for the Diversion center for the mentally ill in prison. This is a place for mentally ill people suspected of minor, non-violent crimes to receive treatment instead of going to jail.

“I simply don’t have the resources for it,” said Giese.

My Health My Resources of Tarrant County (MHMR) operates the center. They are looking for other sources of funding, and right now there is money to keep the center running until about April, Giese said.

KERA has asked MHMR for comment.

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