Collin County raises property tax rate for first time in 30 years

Collin County commissioners have voted to raise the property tax rate for the upcoming fiscal year, ending a streak of more than 30 years without an increase. The decision comes as the region experiences rapid population growth, which has outpaced spending increases and inflation over the last decade.

According to the Texas Public Policy Foundation, the county added more residents this year than all but one other county in the United States, creating heightened demand for public services and infrastructure maintenance.

Economists and local officials note that local governments face a challenging fiscal environment characterized by ongoing inflation and limited federal support. J.H. Cullum Clark, an economist at the George W. Bush Institute, stated that localities must either raise tax revenues or reduce spending to address these pressures.

Teodoro Benavides, a professor at The University of Texas at Dallas and former Dallas city manager, added that while state expectations favor maintaining current revenue levels, local leaders also aim to remain competitive by avoiding rate hikes.

In Plano, the city raised its tax rate in 2025 for the first time in 16 years, citing slowing growth, state legislative pressures, and rising costs for aging infrastructure. Budget director Karen Rhodes-Whitley indicated that the increase helped the city manage debt pressures from a recent bond election.

However, Plano City Manager Mark Israelson warned that while the rate remains flat this year, future adjustments may be necessary. "We can get by this year with holding the tax rate firm," Israelson said at an August council meeting. "But in the future … there will likely be more than one need to adjust the tax rate."

For Collin County, Commissioner Darrell Hale explained that the tax increase is required to fund staff for infrastructure maintenance and prevent backlogs in courts and county offices. He noted that detainee healthcare costs at the county jail tripled to $24 million over the past decade. "We were digging for every dollar we could," Hale said regarding the budget process.

County Judge Chris Hill, the only commissioner to vote against the hike, proposed keeping employee salaries flat to maintain the existing rate, but other officials argued that uncompetitive wages would risk employee retention.

Meanwhile, Frisco and McKinney have chosen to keep their property tax rates flat for the next fiscal year, overriding staff recommendations to raise them. In McKinney, officials cited a decline in average home values as a factor in their decision. Both cities are focusing on cost-cutting measures to manage budgets without increasing the tax burden on residents.

Source: yahoo.com.

Sources

Yahoo