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The city's 2017 property tax rate is 59 cents per $100 of property valuation, a 2-cent reduction from the 2016 tax rate of 61-cents. This includes 32.864 cents for Maintenance and Operations (M&O) to fund day to day city operations and 26.136 cents for Debt Service, to pay principal and interest on debt issued by the City for capital projects.
The City Council sets the property tax rate each year. The annual city budget and tax rate are proposed each August and adopted in September following required public notices and public hearings.
Public hearings were held at 7 p.m. on Monday, August 28 and Wednesday, September 6, in the City Council Chambers on the third floor of City Hall.
The city's fiscal year begins October 1.
In 2017, the average NRH home has an appraised value of $200,000. After the city’s 15% homestead exemption is applied, the taxable value of the home is $170,000. The annual city tax bill for this home will be $1,003.
The annual tax bill for the average home increased about $60, or 6.4% compared to last year. It is important to note that property taxes are frozen and will not increase for those homeowners who have a senior/disabled exemption in place. 1 out of every 4 homes benefits from the senior/disabled exemption.
Please use our online calculator.
Your city taxes fund the infrastructure you depend on every day, such as good roads, clean reliable water, a properly functioning sewer system and the police, fire and emergency medical services that respond in a crisis and keep our community safe. These funds also provide for innovative library programs that encourage life-long learning as well as superior park and recreation amenities that promote active lifestyles and provide beautiful green space for recreation and play. The following chart shows how much the average homeowner pays each year, or month, in property taxes for these services.
* Capital Projects includes debt service for City Hall, Street, Drainage, Utility capital improvements, public safety equipment and other capital equipment.
** General Government includes City Manager's Office, Communications, City Secretary, Legal, Human Resources, IT, Finance, Budget, Building Services, non-departmental.
Effective Rate $0.575137
Adopted Rate $0.590000
Rollback Rate $0.593165
The 59-cent tax rate will generate $2,167,007 or 7.94% more in revenue from property taxes this year. Of that amount, $728,148 (34%) is tax revenue generated from new construction.
The proposed budget allocates the additional funding to a number of city services to keep up with growth and increasing demands on city services. This includes adding 2 positions to the Police Department including a dedicated fire dispatcher to the city’s 911 call center, and replacing aging police vehicles and an ambulance. One new Code Compliance Officer along with 2 part time positions for Animal Services are also proposed, along with full year funding for a building inspector position that was added this summer. The budget also includes competitive public safety compensation to ensure the city continues to attract and retain qualified first responders. It also addresses necessary improvements to the city’s water and sewer infrastructure, and continues to emphasize street maintenance.
For every penny the City property tax rate is reduced the average homeowner will save $17 per year, or $1.42 per month. The chart below shows what the average homeowner would pay in city taxes for tax rates ranging from 61-cents to 57-cents.
For every 1-cent reduction in the tax rate, funding for the city’s day to day operations is reduced by roughly $410,000. The greater the reduction in available funding, the greater the impact to the quality and quantity of the services offered to the citizens of North Richland Hills.
The tax you pay to the city equals around 22% of your overall property tax bill. Over half of your property taxes, 55%, goes to the school district, with the rest going to county agencies.
While it does not collect property taxes, the State of Texas collects around $2,000 in sales and other taxes per person per year. (Year: 2015, Source: State)
The federal government collects more than $10,000 per person per year in income taxes. (Year: 2015, Source: Federal)
Property values are set by the Tarrant Appraisal District (TAD) and may decrease, increase or remain the same from year to year. Property values are based on a number of factors including current housing market conditions. Overall, existing property values decreased from 2009 to 2011 and it was not until 2014 that they returned to pre-recession levels. There was essentially no increase in existing home values in 2015. While property values increased in 2016 and 2017, it is important to note that the taxable value has not increased as much as the market value due to state mandated limitations on value increases for residential homesteads. While senior and disabled residents may see their property values increase, their tax bill will not increase above the amount they paid in the year that they qualified for the tax ceiling.
Property tax rates vary by city, as do property values. Some cities may have a lower tax rate, but a significantly higher average home value. Also, they may offer no homestead exemption or a lower homestead exemption. Some cities have much higher sales tax and hotel/motel tax revenue that help fund city services, enabling the city to maintain a lower property tax rate. The following shows the 2017 average annual city property tax bill in NRH compared to the average city property tax bill in neighboring cities. (Please note, this reflects city taxes only and do not include property taxes levied by school districts or county entities.)
North Richland Hills residents can receive a 15% homestead exemption, plus a $36,000 exemption if they are a senior citizen (65 and older) or disabled.
We will use a home valued at $200,000 as an example, which is the average Appraised Value of a single family home in North Richland Hills in 2017. The homestead exemption (15% of the Appraised Value) on this property equals $30,000. This is subtracted from the Appraised Value, making the property's Taxable Value $170,000.
When the homeowner turns 65, they can fill out an application through the Tarrant Appraisal District and receive the senior exemption. This is not in lieu of the 15%, but rather in addition. If a home with the average Appraised Value of $200,000 has both the 15% Homestead and the $36,000 Senior Exemption on the property, the owner would receive total exemptions of $66,000 ($30,000 + $36,000). This reduces the property's Taxable Value to $134,000.
The current tax rate is applied to the Taxable Value of the property. In this example, at a 59-cent rate, the resident would pay $1,003 in city property tax if they have the homestead exemption or $790.60 in city property taxes if they have both the homestead and senior exemption.
To verify if you have the homestead and / or senior exemption in place, contact the Tarrant Appraisal District at 817-284-0024.
The senior / disabled tax ceiling (also known as a tax freeze) ensures that a senior or disabled person will not have a city tax bill any higher than what was paid in city taxes in the year the homeowner turns 65 or becomes disabled, even if there are increases to their property value or the tax rate.
The amount a senior or disabled homeowner pays in city taxes can decrease if changes to the appraised value and tax rate equal an amount lower than their frozen amount. However, if in subsequent years the value increases and/or the tax rate increases, the homeowner can pay more in property taxes but not more than the amount previously frozen. The cap does not reset.
If improvements are made to the home (such as an addition, not general maintenance type improvements), then the tax bill can go up by the amount of taxes related to the improvement. This amount added to the previously frozen amount would then become the new ceiling on the amount of taxes a homeowner would pay.
If a homeowner benefits from the freeze, sells their home and buys a new home of higher value, the freeze will apply to the new home at the same proportion as the freeze applied to the home they sold.
The tax freeze may be passed on to a surviving spouse if the surviving spouse is 55 years of age or older at the time of the eligible homeowner’s death and continues to reside in the residence.
A senior / disabled tax ceiling is in place for 1 out of 4 homeowners in North Richland Hills. This number continues to grow each year. To verify that you have the senior / disabled tax ceiling in place, contact the Tarrant Appraisal District at 817-284-0024.