This year’s property tax levy will raise more revenue from property taxes than in the preceding year. The Local Government Code requires the governing body to hold a separate vote to ratify the property tax increase reflected in the budget. This vote must be in addition to and separate from the vote to adopt the budget or the vote to set the tax rate.
 
Texas Local Government Code Sec. 102.007. ADOPTION OF BUDGET. (c) Adoption of a budget that will require raising more revenue from property taxes than in the previous year requires a separate vote of the governing body to ratify the property tax increase reflected in the budget. A vote under this subsection is in addition to and separate from the vote to adopt the budget or a vote to set the tax rate required by Chapter 26, Tax Code, or other law.
 
The state has required language for the motion to adopt the tax rate and verbiage that must be included in the ordinance and budget cover page. The motion must be made in the following form:
 
“I move that the property tax rate be increased by the adoption of a tax rate of 0.350000, which is effectively a 2.74 percent increase in the tax rate.”
 
Under the tax code, the following language must be included on the cover page of the budget in 18-point font or larger:

This budget will raise more revenue from property taxes than last year’s budget by an amount of $2,162,794, which is a 3.22 percent increase from last year’s budget. The property tax revenue to be raised from new property added to the tax roll this year is $552,899.00.
 
To ensure compliance with Texas Local Government Code section 102.007(c), staff requests a vote by the City Council to ratify the tax revenues that are included in the FY24 budget, which are more than those included in the FY23 budget.