KARNES COUNTY 2014 TAX RATE PUBLIC HEARING WILL WE INVEST IN OUR COUNTY?

KARNES COUNTY 2014 TAX RATE PUBLIC

HEARING

WILL WE INVEST IN OUR COUNTY?

Karnes County Tax Rate 2008-2014

2008 2009 2010 2011 2012 2013 20140

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.684

0.6193

0.5

0.4269

0.2943

0.187

0.3

Tax Rate

Texas Tax Law

Property value increases cause tax rate cuts so tax revenue stays the same.

TAX RATES

PROPERTY VALUES

Exception – “New Property” (improvements) not counted as an increase in property value.

Reason – New Property causes increased need for county services and more strain on infrastructure.

Problem! New mineral production not treated as New Property, so values of new wells drives down tax rates.

*Ignores additional needs for county services and infrastructure maintenance issues caused by production.

“Effective Rate”The tax rate that would produce the same tax revenue as last year.

“Rollback Rate”The tax rate that would produce 8% more tax revenue than last year.

2013 Tax Rate Comparison

Dewitt County Bee County Wilson County Live Oak County Atascosa County Karnes County

0.46937 0.4610.4364 0.42397

0.3406

0.187

Surrounding Counties Karnes County

2014 Proposed Tax Rate Comparison

Wilson County Dewitt County Bee County Live Oak County Atascosa County Karnes County0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

0.45

0.50.4738 0.46937

0.44564

0.3696 0.3632

0.3

Surrounding Counties

Karnes County Tax Payable on $100,000 Home

2008 2009 2010 2011 2012 2013 Proposed 2014$0

$100

$200

$300

$400

$500

$600

$700

$800

$684

$619

$500

$426

$294

$187

$300

Tax Payable

Where does the Tax Income come from?

2008 2011 20140%

10%

20%

30%

40%

50%

60%

70%

80%

90%

56%

31%

4%

16%

22%

12%

28%

47%

84%

Land Industrial Minerals

Karnes County Taxable Values

56%

16%

28%

2008

Land Industrial Minerals

4%12%

84%

2014

Land Industrial Minerals