Conroe Drops Property Tax Rate

CONROE, TX — For the first time in nine years, the Conroe City Council voted to reduced the city's property tax rate. The new tax rate will be $0.4175 per $100 of valuation. The city had maintained a rate of $0.42 per $100 since 2008.

Despite the decrease, the tax rate is still above the city's effective tax rate of $0.4045 per $100. The effective tax rate is the amount that the city would need to collect to raise as much revenue as it did in the 2015-2016 budget year.

Because of increasing property values, it is possible that homeowners will not see much relief on their tax bill. City leaders also expect to see an increase in property tax revenue because of population growth and annexation.

The tax rate is expected to generate about $162 million in revenue for the city, a 5 percent increase from the last budget year. The city expects to spend about $161 million, which is up 3.9 percent from FY 2015-2016.

Although the city is essentially spending as much money as it is generating in property tax revenue, Conroe will be far from broke. Along with property taxes, the city also receives about $40 million per year in sales tax receipts.

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