​​See the financials (current and historical) for the City of Murphy here:http://www.murphytx.org/107/Finance



MURPHY CITY COUNCIL

​​​​PROPERTY TAX RATES EXPLAINED


Assuming an overall increase in property values, here are the possibilities:

1. Tax rate increase
This happens when your property value increases AND your tax rate increases at the same time. The taxing entity collects a higher percentage of that higher appraised value. This collects the most tax dollars overall.
Everyone understands that this is a tax increase.
 
2. Tax rate steady
This is an increase in the amount paid in taxes because of higher property value. Under this scenario, the rate stays the same, but your property increases in appraised value.

Remember—the tax rate and the tax dollar amount that you pay are different elements of your taxes. This is how politicians try to get away with saying they have not increased your taxes, even though the amount you see on your tax bill goes up. A variation of this scenario is a slightly lower tax rate that still collects more dollars.
This scenario collects more tax dollars overall.

3. Effective tax rate
The state legislature defines “effective tax rate” as the artificial rate that brings in the same dollar amount in the aggregate from existing properties. At the same time, the city collects additional tax dollars from new construction value over and above the existing property amount.
One can truly say that this is not a tax increase on individuals, but it does increase available resources for the city.

This scenario collects more tax dollars overall.

4. Revenue-neutral tax rate
If the city decided to collect the exact dollar amount as the year before, including all properties (existing and new construction), the tax rate would decline by a large percentage—especially in a fast-growth city like ours.
In this scenario, the city would collect the same dollars overall in the aggregate, while individual property owners would see a dramatic decrease.

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Collin County Republican
Precinct 144

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AGENDAS posted the prior Friday: http://www.murphytx.org/678/New-Agenda-Platform​