Hays County gets pushback on proposed tax rate hike

SAN MARCOS — Hays County is proposing a jump on its tax rate for fiscal year 2025 and some members of the public are not pleased. In a 5-0 vote last month, the Hays County Commissioners Court approved setting the proposed tax rate at $0.35 per $100 valuation, which is an increase from the current rate set at $0.3075. The tax rate consists of $0.2256 for general maintenance and operations (M&O), $0.089 for general debt and $0.0415 in road and bridge M&O. According to Hays County Budget Officer Vickie Dorsett, the change aims to address critical areas of need, including the following: • Increased funding for Collective Bargaining Market Adjustments for a total of $5 million in an effort to recruit and retain law enforcement staff • Adding to the road & bridge tax rate in order to address critical road infrastructure needs • Creating a family liaison position under the Judicial Services Division in order to have a consistent staff member as a liaison for communication between those incarcerated and their loved ones • Expanding pre-trial diversion programs to reduce recidivism However, during a public hearing held at the Sept. 3 commissioners court meeting, resident Dan Lyon still shared his concerns and hesitations about the rate increase. “For years now, y'all have been telling us that we've been steadily going down on our tax rate, which is true. But what you didn't tell the public was our valuation — property valuations — have steadily gone up, including this year. Now, you always try to conflate the effective tax rate with the tax rate. They're two different things. The effective tax rate is the tax rate that you set times the valuation, which is set by the central appraisal district,” Lyon explained. “Now, they said basically, everything is up this year, but yet you want to raise the tax rate. You should be dropping the tax rate and you should drop it a lot further than you have been.” He also cited that residents who have called Hays County home for many years are now forced to move because of the property taxes. “Please lower the tax rate. Have some consideration for the people of Hays County. We've got people that have lived here all their lives that can't afford to live here anymore because of the property tax,” Lyon said. “You know, when you tax somebody $5,000 a year for their home, there are people here that don't even make that much in a year, so, where is this going to end? Are you determined to drive all the poor people out of the county? And now, you're starting with the middle class. We can't do any more of this. You have to lower the tax rate. Do not raise it.” The highest the tax rate has been over the last 20 years was in 2010 at $0.4692 per $100 valuation, according to Dorsett: “Our low under the $0.35 was from 1990, which was $0.3278 and the ability to adopt the lower tax rate is due to the growth that is because of the additional growth within the county.” Commissioner Walt Smith said going from a rate of $0.4690 in 2015 — which is the second highest tax rate in Hays County in 20 years — to a current proposed rate of $0.35, most municipalities, counties and other taxing entities in the state would question how Hays County is able to do that. He said it’s done by trying to pay for growth with growth, but “it’s an impossibility at some point.” “At a certain point, you have enough residents moving here where services, and the need for services, outstrips some of our tax base. We've done a great job in the past with last year, our tax rate of $0.3075 per $100. We were bottom 30 in the state in tax rate as one of the fastest-growing counties in the entire nation,” Smith said. “We often have this conversation; there's mass confusion whenever me as a homeowner, or me as a property owner, goes in and they write one check. That one check goes to Hays County. I think there is a massive issue with the fact that that one check goes to us, but very few know that within 48 hours, we have to disseminate all of that money to all of those other tax entities … We are truly a clearing house for all of those other entities. I think it's sometimes lost, the cuts and the work that our county government has done on behalf of its individual taxpayers to ensure that we can keep that rate as low as possible.” Dorsett explained to the court that the public hearing held on Sept. 3 is required by Tax Code 2606 due to the proposed tax rate being an increase from the current rate. She also stated that when the court meets again on Sept. 17 for the final public hearing on the tax rate, the court is allowed to lower the rate from what is currently proposed, but it can not raise it any further. The final public hearing on the tax rate will be held at 1 p.m. on Tuesday, Sept. 17, at the Hays County Courthouse. To listen to the full discussion and public hearing on the tax rate from Sept. 3, visit www.hayscountytx.gov/commissioners-court-live-stream . Budget and tax rate documents can be viewed at www.hayscountytx.gov/budget-office .