Chapter 6
Focus on County Taxes
Total property values in Texas counties increased by 10.4 percent, from $1.7 trillion to $1.9 trillion (Exhibit 32).
Exhibit 32
County Property Tax Values, 2007-08
Residential
| Property Category |
2007 County Tax Values |
Percent of Total |
2008 County Tax Values |
Percent of Total |
Percent Change 2007-2008 |
|---|---|---|---|---|---|
| Single-family Residential | $844,734,501,507 | 49.0% | $915,934,320,603 | 48.1% | 8.4% |
| Mobile Homes | $5,623,057,934 | 0.3% | $5,750,061,852 | 0.3% | 2.3% |
| Total Residential | $850,357,559,441 | 49.3% | $921,684,382,455 | 48.8% | 8.4% |
Acreage/Lots
| Property Category |
2007 County Tax Values |
Percent of Total |
2008 County Tax Values |
Percent of Total |
Percent Change 2007-2008 |
|---|---|---|---|---|---|
| Vacant Lots | $37,909,327,321 | 2.2% | $42,937,107,875 | 2.3% | 13.3% |
| Rural Land and Improvements | $71,769,439,568 | 4.2% | $75,852,727,248 | 4.0% | 5.7% |
| Total Acreage Lots | $109,678,766,889 | 6.4% | $118,789,835,123 | 6.2% | 8.3% |
Business Properties
| Property Category |
2007 County Tax Values |
Percent of Total |
2008 County Tax Values |
Percent of Total |
Percent Change 2007-2008 |
|---|---|---|---|---|---|
| Commercial Real Estate | $251,365,447,742 | 14.6% | $282,248,069,892 | 14.8% | 12.3% |
| Commercial Personal | $112,492,813,446 | 6.5% | $122,891,235,323 | 6.5% | 9.2% |
| Multi-family Residential | $76,371,348,493 | 4.4% | $84,808,581,887 | 4.5% | 11.1% |
| Industrial Real Estate | $86,480,270,147 | 5.0% | $92,648,947,726 | 4.9% | 7.1% |
| Industrial Personal | $84,814,091,251 | 4.9% | $96,768,399,082 | 5.1% | 14.3% |
| Oil and Gas | $95,643,185,228 | 5.5% | $121,360,952,729 | 6.4% | 27.0% |
| Utilities | $43,451,217,326 | 2.5% | $45,832,917,428 | 2.4% | 5.6% |
| Vehicles | $166,768,888 | 0.0% | $120,055,812 | 0.0% | -28.0% |
| Special Inventory | $4,615,344,967 | 0.3% | $4,694,598,055 | 0.2% | 1.7% |
| Residential Inventory | $9,365,464,322 | 0.5% | $9,955,806,068 | 0.5% | 6.3% |
| Intangible Personal | $0 | 0.0% | $132,117,464 | 0.0% | - |
| Total Business Properties | $764,765,951,810 | 44.3% | $861,461,681,466 | 45.4% | 13.0% |
| Total All Properties | $1,724,802,278,140 | 100% | $1,905,029,420,670 | 100% | 10.4% |
Source: Texas Comptroller of Public Accounts.
As with school districts, business properties saw the biggest increase in value, 13 percent, from 2007 to 2008. Business properties also saw a slight increase as a percentage of total value, as residential properties gradually decreased. Single-family residences, however, continue to be the primary source of county property values, accounting for 48.4 percent of all county value in 2008, down 1 percent from 2007. While decreasing by a percentage point of total value in 2008 from 2007, single-family residences increased in value 8.4 percent during the same period. Oil, gas and minerals saw the highest percent increase in value, from $95.6 billion in 2007 to $121 billion in 2008, or 27 percent.
County Tax Levy
While county appraised values saw a 10.1 percent increase in 2008 over 2007, the overall rate of increase of total taxes was 8.7 percent (Exhibit 33).
Exhibit 33
County Tax Levy Statewide, 2007-08
Property Categories
| Type of Category |
2007 Appraised Value |
Percent of Value |
2008 Appraised Value |
Percent of Value |
Percent Increase from 2007 |
|---|---|---|---|---|---|
| A. Single-family Residential | $844,734,501,507 | 49.0% | $915,934,320,603 | 48.2% | 8.4% |
| B. Multi-family Residential | $76,371,348,493 | 4.4% | $84,808,581,887 | 4.5% | 11.1% |
| C. Vacant Lots | $37,909,327,321 | 2.2% | $42,926,683,011 | 2.3% | 13.2% |
| D. Rural Real | $65,031,318,057 | 4.2% | $75,883,708,382 | 4.0% | 16.7% |
| F1. Commercial Real | $251,365,447,742 | 14.6% | $282,248,069,892 | 14.8% | 12.3% |
| F2. Industrial Real | $86,480,270,147 | 5.0% | $92,648,947,726 | 4.9% | 7.1% |
| G. Oil, Gas and Minerals | $95,643,185,228 | 5.5% | $121,360,952,729 | 6.4% | 26.9% |
| H. Vehicles | $166,768,888 | 0.0% | $120,055,812 | 0.0% | (28.0%) |
| J. Utilities | $43,451,217,326 | 2.5% | $45,832,917,428 | 2.4% | 5.5% |
| L1. Commercial Personal | $112,492,813,446 | 6.5% | $122,891,235,323 | 6.5% | 9.2% |
| L2. Industrial Personal | $84,814,091,251 | 4.9% | $96,768,399,082 | 5.1% | 14.1% |
| M. Other Personal | $5,623,057,934 | 0.3% | $5,750,061,852 | 0.3% | 2.3% |
| N. Intangible Personal | $0 | 0.0% | $132,117,464 | 0.0% | 0.0% |
| O. Real Property, Inventory | $9,365,464,322 | 0.5% | $9,955,806,068 | 0.5% | 6.3% |
| S. Special Property | $4,615,344,967 | 0.3% | $4,694,598,055 | 0.3% | 1.7% |
| Total Values | $1,724,802,278,140 | 100% | $1,901,956,455,314 | 100% | 10.3% |
Deductions
| Type of Category | 2007 Value |
Percent of Value |
2008 Value |
Percent of Value |
Percent Increase from 2007 |
|---|---|---|---|---|---|
|
Deductions - Farm-to-Market |
$35,552,836,895 | 2.1% | $38,446,622,376 | 2.0% | 8.1% |
| Deductions - General Fund | $181,455,117,070 | 10.5% | $198,304,947,919 | 10.4% | 9.3% |
| Total Deductions | $217,007,953,965 | 12.6% | $236,751,570,295 | 12.4% | 9.1% |
County Levy
| Type of Category | 2007 Value |
Percent of Value |
2008 Value |
Percent of Value |
Percent Increase from 2007 |
|---|---|---|---|---|---|
| General Fund Levy | $5,532,871,078 | 94.8% | $6,044,579,961 | 95.3% | 9.3% |
| Farm-to-Market & Flood Control Levy | $206,577,079 | 3.5% | $216,888,863 | 3.4% | 5% |
| Road and Bridge Levy | $97,541,792 | 1.7% | $81,236,079 | 1.3% | (16.7%) |
| Total County Levy | $5,836,989,949 | 100% | $6,342,704,903 | 100% | 8.7% |
Source: Texas Comptroller of Public Accounts.
The percent of deductions represents the percent of total appraised value. Deductions increased to $236.8 billion, or 9.1 percent, in 2008 over 2007. State law requires counties to grant a $3,000 homestead exemption for the farm-to-market roads and flood control tax. In 2008, this exemption totaled $38.4 billion. The amount of exemption may be greater for homeowners who are aged 65 or older or disabled. One hundred ninety-seven counties granted this local option exemption, which accounted for a value loss of $61.8 billion. For 2008, 113 counties granted local-option percentage homestead exemptions ranging from 1 percent to 20 percent. This accounted for a loss of $76 billion in value.
County Tax Rates
Each county may levy as many as three individual tax rates for funds dedicated to specific purposes as provided by the Texas Constitution. These three funds include farm-to-market roads and flood control, a general fund and a special road and bridge fund.
All 254 Texas counties impose a tax for the general fund. In 2008, that levy totaled $6 billion. For the 2008 tax year, 120 counties reported levying the farm-to-market roads and flood control taxes, raising $216.9 million. Sixty-eight counties levied the special road and bridge tax, raising $81.2 million.
The largest county in terms of its tax levy is Harris County, with 2008 revenue of $1 billion (Exhibit 34).
Exhibit 34
Top Ten Counties in Tax Levy, 2008
| County | Taxable Value for County Tax Purposes | Total County Tax Rate | Reported County Tax |
|---|---|---|---|
| Harris County | $281,358,928,249 | $0.390895 | $1,095,133,426 |
| Travis County | $95,692,489,983 | $0.412200 | $394,444,444 |
| Dallas County | $170,117,650,763 | $0.228100 | $388,038,362 |
| Tarrant County | $124,760,835,086 | $0.264000 | $329,368,255 |
| Bexar County | $97,312,377,954 | $0.326866 | $319,364,761 |
| Fort Bend County | $38,147,525,694 | $0.499750 | $190,736,711 |
| Collin County | $71,722,228,873 | $0.242500 | $173,926,405 |
| Hidalgo County | $27,112,169,503 | $0.590000 | $159,961,800 |
| Williamson County | $33,441,015,058 | $0.468324 | $156,664,266 |
| Montgomery County | $30,334,826,908 | $0.483800 | $146,759,893 |
Source: Texas Comptroller of Public Accounts.
While these 10 counties represent only 3.9 percent of all counties, they collect 52.9 percent of all property taxes for counties in Texas. Jim Hogg County has the highest property tax rate in Texas at $1.09 per $100 of valuation and is the only county with a tax rate of more than $1 per $100 of valuation. Sutton County has the lowest tax rate at $0.1797.
Full details of county property values are available on the Comptroller's Web site at www.window.state.tx.us/taxinfo/proptax/annual08/2008_county_values.xls.
Permanent University Fund Lands
The Permanent University Fund (PUF) provides money for the maintenance and support of the University of Texas, Texas A&M University and most of their branch campuses. The fund owns more than 2 million acres in 21 Texas counties. Under the provisions of Texas Constitution Article VII, Section 16(a), the state pays county taxes on this land.
In 2008, the taxable value of PUF land and minerals was $635.6 million. The state paid $2.4 million in county taxes on that land (Exhibit 35).
The state avails itself of early payment discounts offered by Andrews, Culberson, Dawson, Gaines, Martin, Pecos, Reagan and Schleicher counties.
Exhibit 35
Permanent University Fund 2008 Values and Taxes Paid
| County | Acres |
Surface Taxable Value |
Royalty Taxable Value |
Total Taxable Value |
Total Tax Paid |
|---|---|---|---|---|---|
| Andrews | 293,029.5 | $2,114,730 | $186,049,120 | $188,163,850 | $647,941.77 |
| Cooke | 166.5 | 11,800 | 100,470 | 112,270 | 505.22 |
| Crane | 65,244.8 | 350,060 | 121,185,030 | 121,535,090 | 379,894.17 |
| Crockett | 367,198.0 | 5,879,160 | 30,189,590 | 36,068,750 | 152,032.62 |
| Culberson | 46,006.7 | 320,220 | 0 | 320,220 | 2,204.71 |
| Dawson | 163.5 | 2,130 | 0 | 2,130 | 11.37 |
| Ector | 6,142.3 | 60,650 | 19,789,826 | 19,850,476 | 71,064.71 |
| El Paso | 11,322.1 | 856,728 | 0 | 856,728 | 2,933.77 |
| Gaines | 2,805.5 | 54,360 | 0 | 54,360 | 182.84 |
| Hudspeth | 493,405.0 | 2,220,308 | 0 | 2,220,308 | 14,222.05 |
| Irion | 25,353.8 | 595,880 | 648,930 | 1,244,810 | 4,790.16 |
| Lamar | 513.3 | 44,330 | 0 | 44,330 | 191.90 |
| Loving | 25,881.6 | 78,820 | 64,753,100 | 64,831,920 | 205,517.17 |
| Martin | 16,687.2 | 700 | 7,547,960 | 7,548,660 | 25,854.89 |
| Pecos | 188,316.1 | 1,608,460 | 7,628,450 | 9,236,910 | 51,726.84 |
| Reagan | 218,105.9 | 5,682,629 | 46,022,870 | 51,705,499 | 172,694.90 |
| Schleicher | 61,835.0 | 2,051,510 | 4,030,970 | 6,082,480 | 38,350.16 |
| Terrell | 61,884.0 | 730,212 | 8,130,550 | 8,860,762 | 28,735.82 |
| Upton | 86,429.5 | 345,670 | 25,685,089 | 26,030,759 | 60,417.65 |
| Ward | 80,639.4 | 2,361,550 | 53,829,140 | 56,190,690 | 376,477.64 |
| Winkler | 49,036.7 | 158,770 | 34,489,960 | 34,648,730 | 199,576.74 |
| Totals | 2,100,166.3 | $25,528,677 | $610,081,055 | $635,609,732 | $2,435,327.10 |
| Totals | 2,100,166.303 | $24,610,527 | $434,309,760 | $458,920,287 | $1,944,739.08 |
Source: Texas Comptroller of Public Accounts.