Page 103 - City of Westlake FY20 Budget

Section 2 Financial Analysis

Property Tax Overview

Westlake’s property values have increased appreciably over time, as shown in this chart.
The difference between assessed value and
taxable value is due to values related to the
Town’s homestead and other exemptions.
State law requires a taxing unit to calculate
two rates after receiving its certified
appraisal roll – the effective tax rate and
the rollback tax rate. The effective rate is
the rate that will generate the same
amount of property tax dollars as the
previous year, excluding new construction
and annexations, when the two years are
compared. The rollback rate is the highest
tax rate the taxing unit can set before the
taxpayers can start tax rollback procedures.
Depending on the ultimate rate that is chosen by the Town and its relationship to the effective rate,
there are requirements that must be followed to comply with truth-in-taxation laws. These requirements
protect the public’s right-to-know concerning tax rate decisions.

EXEMPTIONS TO THE TAX LEVY AND PROPERTY TAX REDUCTION FROM SALES AND USE TAX

1. Homestead Exemption
• This is an exemption offered by the Town which reduces the taxable value of all homes by 20%,
which is the maximum amount allowed under the law.

2. Additional 65+ or Disabled Exemption
• A $10,000 exemption on the taxable value of homes of 65+ or disabled residents. (This is one or
the other, not both).

3. Homestead Tax Ceiling
• Limits the total amount of taxes residents who are 65+ or disabled pay so that the future years
their taxes will not increase beyond what they are currently paying.
• Any resident that was 65 when Westlake adjusted its ad valorem rate in 2010, will not pay any
municipal ad valorem taxes due to this tax ceiling.
• If a resident turned 65 this year, then the amount they paid this year in municipal ad valorem
taxes would remain fixed at that amount. They will not pay more but could potentially pay less if
taxes are lowered

4. Property Tax Reduction
• The citizens of Westlake voted to abolish the ½% additional sales and use tax for economic and
industrial development, Section 4A, and to implement the ½% local sales and use tax to be used
to reduce the property tax rate effective October 1, 2006.
• Prior year’s sales tax revenues are used in calculating the current tax rates based on State
Comptroller’s Truth and Taxation process.
• Current calculations of Westlake’s tax rate take these revenues into consideration and has saved
our residents approximately $.14 per $100 valuation.

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