Title
Consider and take action on an ordinance approving an ad valorem tax rate for the City of League City, Texas, upon all taxable property within the corporate limits of the City for the Fiscal Year ending September 30, 2026; directing the assessment and collection thereof; providing for a severability clause; and providing for an effective date (Assistant City Manager - CFO)
Staff requests approval on first and final reading.
Taxpayer Impact Statement Required per H.B. 1522 effective September 1, 2025
2024 Adopted Property Tax Rate $0.369 with average homestead taxable value of $351,138 equals tax of $1,295.70
2025 No-New-Revenue Property Tax Rate $0.36355 with average homestead taxable value of $362,634 equals tax of $1,318.36
2025 Proposed Property Tax Rate $0.36355 with average homestead taxable value of $362,634 equals tax of $1,318.36
Background:
Approval of this ordinance will set a property tax rate of $0.36355 per $100 for 2025 Tax Year (Fiscal Year 2026) and increase the Senior Exemption to $200,000.
Section 102.009 (a) of the Local Government Code states "The governing body of the municipality may levy taxes only in accordance with the budget." City Council approved the FY2026 budget based on a property tax rate of $0.36355 per $100 valuation earlier during tonight’s meeting. Since the proposed tax rate of $0.36355 does not exceed the lower of the no-new-revenue tax rate or voter-approval tax rate, a public hearing is not required.
The tax ordinance includes an increase of the Senior Exemption from $100,000 to $200,000 per City Council resolution 2025-107 approved May 27, 2025. The approved data sheet is attached.
Senate Bill 2 Requires a Notice for the Meeting to Vote on the Tax Rate be published in the local newspaper, posted on the homepage of the City’s website, and ran on Channel 16.
Newspaper: Notice for the meeting to vote on the tax rate was published in the Galveston Daily News on Thursday, September 4th. Senate Bill 2 requires the notice be published in a general circulation newspaper.
Web: The same notice was placed on the City’s website by Tuesday, September 2nd, 7 days prior to the September 9th meeting. Senate Bill 2 requires the notice be published on the homepage continuously for at least seven days immediately before the date of the vote on the tax rate.
Television: The same notice was shown on Channel 16 by Tuesday, September 2nd, 7 days prior to the September 9th meeting. The requirement is a 60-second notice at least 5 times per day between 7am and 9pm for at least seven days immediately before the date of the vote of the tax rate.
Total Tax Rate $0.36355
Debt Rate $0.06000
M&O Rate $0.30355
No-New-Revenue Rate $0.363550
Voter-Approval Rate $0.464192
Taxpayer Impact Statement Required per H.B. 1522 effective September 1, 2025
2024 Tax
Year 2025 Tax Year•
Adopted No-New- Proposed Change
Tax Rate Revenue Tax Rate
Tax Rate
Total tax rate
(per $100 of value) 0.36900 0.36355 0.36355 decrease of -0.005450 per $100, or -1.48%
Average homestead
taxable value $351,138 $362,634 $362,634 increase of 3.27%
Tax on average
homestead $1,295.70 $1,318.36 $1,318.36 increase of 22.66, or 1.75%
Attachments:
1. Proposed Property Tax Rate Ordinance
2. Notice for the Meeting to Vote on Tax Rate
3. Approved Data Sheet 5/27/25 item 9C
FUNDING
{X} NOT APPLICABLE
STRATEGIC PLANNING
{X} NOT APPLICABLE