Dallas City Wire

Dallas Mayor Eric Johnson has made the lowering of property taxes a priority for 2022, noting that the levies should be more in line with neighboring cities.

“If we focus on these committee priorities, which were developed with feedback from committee chairs, we will make our city stronger, safer, healthier, more vibrant and more equitable,” Johnson wrote in a memo to Dallas City Council members and other city officials.

In September the council approved a 0.3-cent property tax rate decrease to 77.33 cents per $100 valuation. Dallas’ property tax rate has decreased every year since 2016, but it’s still one of the highest in Texas among larger cities. Only El Paso’s is larger.

Although the actual property tax rate may be decreasing, a report from the Texas Public Policy Foundation found that property tax levies in Dallas grew 56.5% from $863.9 million to $1.3 billion from 2016 to 2020. The combined population and inflation for the city grew 6.4% during that time, resulting in growth that exceeded the ideal rate by 50.2%.

Interim chief of staff Tristan Hallman said property taxes are expected to decline, and Johnson has communicated that to Dallas residents.

“In a recent email newsletter to constituents, the mayor said, ‘Next year's budget should include a tax rate reduction to help offset the rising valuations that increase the prices of housing and rent, as well as the cost of doing business,” Hallman told Dallas City Wire.

“Previously, in a December memo, Johnson made ‘developing and recommending a plan to meaningfully reduce the property tax rate to make Dallas more competitive with surrounding cities’ the No. 1 priority for the Government Performance & Financial Management Committee, chaired by Councilwoman Cara Mendelsohn,” Hallman said.

Hallman said Johnson is a staunch advocate for reducing the tax burden, but there are limits to his authority.

“Mayor Johnson also voted numerous times to reduce the property tax rate through budget amendments last year,” Hallman said. “The mayor, however, does not propose the budget in this form of government. The city manager does. That proposed budget will be released in August.”

T.C. Broadnax has been city manager since Feb. 1, 2017.

“Property taxes are levied on net assessed value, which includes locally assessed real property, improvements, and personal property less exemptions,” the city website says. “The aggregate assessed value in each of these categories changes from year to year due to market trends, depreciation, exemptions, legislative changes and construction activity.”

The fiscal year 2021-22 budget is $4.35 billion.

Home values are rising rapidly in North Texas, up 23.55% year-over-year. Property valuations across the region have been increasing, which, in turn, raises the appraised value used to calculate property taxes in Texas.

The Balance, a personal finance website based in New York City, ranked Texas among the 10 states with the highest property tax rates in the United States with a median payment of $4,065 per year.

Johnson was elected in June 2019 as the city’s 60th mayor. Previously, he served as a member of the Texas House of Representatives, representing Dallas from April 2010 until he was elected mayor.