Page 30 - City of Bedford FY22 Budget

Truth in Taxation

The ad v al o r em t ax i s a t ax as s es s ed o n r eal pr o per t y i n o r der t o pr o v i de a r ev enue s t r eam f o r g o v er nm ent o perat i o ns . The F Y
2021-2022 pr o po s ed budg et was dev el o ped wi t h a t ax rat e o f $ 0.552000 per $ 100 as s es s ed v al uat i o n, whi ch was appr o v ed by
t he Ci t y Co unci l dur i ng t he budg et pr o ces s .

The t ax rat e i s us ed t o g enerat e r ev enue t o pr o v i de f o r o perat i o ns . The t wo m ai n f unct i o ns s uppo r t ed by t he ad v al o r em t ax
ar e G eneral F und o perat i o ns and D ebt S er v i ce pay m ent s . The t ax rat e has t wo di f f er ent s ub-rat es .
The m ai nt enance and o perat i o ns , o r M&O , rat e i s us ed by t he G eneral F und t o pay f o r G eneral F und expens es .
The i nt er es t and s i nki ng , o r I&S , rat e i s us ed by t he D ebt S er v i ce F und t o pay f o r t he annual debt o bl i g at i o ns f o r t he Ci t y .

To det er m i ne t he t ax rat es f o r F Y 2021-2022, t he Tax As s es s o r f o r Tar rant Co unt y ut i l i zes i nf o r m at i o n f r o m F Y2020-2021 and
f r o m t he es t i m at ed new pr o per t y v al ues dev el o ped dur i ng t he cur r ent { s cal y ear .

The f o l l o wi ng ar e t he rat es es t abl i s hed by t he Tax As s es s o r :

No Ne w Re ve n u e T a x Ra te $0 . 54 9319
No Ne w Re ve n u e M&O Ra te $0 . 37 20 57
Vote r A p p rova l M&O T a x Ra te $0 . 387 681
D e b t Ra te $0 . 1650 10

Un a d ju ste d Vote r A p p rova l Ra te $0 . 6264 51
Sa le s T a x A d ju stm e n t Ra te $0 . 0 7 37 60
Vote r A p p rova l Ra te , A d ju ste d for Sa le s
$0 . 552691
T a x

S enat e B i l l 2, al s o kno wn as t he Texas Pr o per t y Tax Ref o r m and Trans par ency Act o f 2019 , was pas s ed by t he Texas Leg i s l at ur e
i n 2019 . At i t s m o s t f undam ent al l ev el , S .B . 2 r ef o r m s t he s y s t em o f pr o per t y t axat i o n i n t hr ee pr i m ar y way s : ( 1) l o wer i ng t he
t ax rat e a t axi ng uni t can ado pt wi t ho ut v o t er appr o v al and r equi r i ng a m andat o r y el ect i o n t o g o abo v e t he l o wer ed rat e; ( 2)
m aki ng num er o us chang es t o t he pr o cedur e by whi ch a ci t y ado pt s a t ax rat e; and ( 3) m aki ng s ev eral chang es t o t he pr o per t y
t ax apprai s al pr o ces s ( Texas Muni ci pal Leag ue) . The bi l l t o o k ef f ect 1 Januar y 2020.

Pr ev i o us l y , any rat e ado pt ed t hat exceeded t he 8 per cent r o l l back rat e t r i g g er ed t he abi l i t y o f ci t i zens t o pet i t i o n t o ho l d an
el ect i o n t o “r o l l back” t he t ax rat e t o t he r o l l back rat e. G eneral l y s peaki ng , S .B . 2 r equi r es a ci t y t o ho l d an aut o m at i c el ect i o n
( i .e., t he bi l l el i m i nat es t he pet i t i o n r equi r em ent ) o n t he No v em ber uni f o r m el ect i o n dat e i f i t ado pt s a rat e exceedi ng t he 3.5
per cent v o t er -appr o v al rat e. S ee TEX. TAX CO D E § 26 .07.

City of Bedford, TX | Budget Book 2022 Page 30