Property Tax Overview

Because the State of Texas does not impose an income tax, sales and property taxes are the primary revenue sources for local governments. Your property taxes fund multiple local taxing units that provide services, regulations, and infrastructure related to schools, water systems, law enforcement, roadways, fire departments, community college, public hospitals, and EMS... just to name a few.

Proposals to increase property taxes are regulated by Truth in Taxation (TNT), a concept enshrined in the Texas Constitution that stipulates how taxpayers will be informed about proposed rate increases. At texas.gov/propertytaxes you can find your local property tax database, where you can easily access a breakdown of your levy and exemptions by taxing unit. The database is updated each September when local elected officials adopt rates.

The first factor of your tax levy is your property's assessed value, which is calculated by the Tarrant Appraisal District. The portion of your property value that is exempted from taxation varies by taxing unit. For example, your taxable value for the school district is typically less than other entities due to state laws regulating exemptions. Once your taxable value is determined, it is multiplied by the tax rate for that taxing unit, resulting in your taxes owed to that entity. By adding each of these tax levies together, you get your total tax bill for the year. 

ASSESSED VALUE  –  EXEMPTIONS  =  TAXABLE VALUE  X  TAX RATE  =  TAX LEVY

Property Tax Rate

Tarrant Appraisal District (TAD) appraises real property within the Town of Pantego. Each October, property tax statements are mailed to owners (or their mortgage companies) by the Tax Assessor-Collector. Upon collection, these taxes are remitted to the Town. The Town's fiscal year (FY) runs from October 1 through September 30. Every year, the Town Council adopts an annual operating budget and the supporting property tax rate, usually in late August or September, just before the FY begins. 

The ad valorem — or property — tax rate is assessed per $100.00 of assessed value. Most property in Pantego is also taxed by Tarrant County, Tarrant County Hospital District (JPS), Tarrant County College (TCC), and Arlington ISD. View the rates and exemptions for these jurisdictions (and all taxing entities in Tarrant County), look up your property account, and get information about protesting appraisals by visiting TAD. For questions concerning your tax invoice or payment deadlines, contact the Tax Assessor.

The total tax rate is comprised of two elements — "maintenance and operations" (M&O) and debt service or "interest and sinking" (I&S). The M&O portion covers daily expenses, including salaries, facility maintenance, smaller infrastructure (streets, water, etc.) projects, and some larger capital purchases such as technology needs and fleet vehicles. The I&S portion covers debt payments, which are typically reserved for significant asset or infrastructure purchases or improvements with projected lifespans at least as long as the debt instrument. 

Debt is used to fund major capital improvements like the installation of reverse osmosis (RO) systems at two well sites (Lane and 303) to improve the taste of drinking water. The Pantego Economic Development Corporation (PEDC) also issues debts at times to finance improvements, including updates to Bicentennial Park. While debt issued by the Town is typically backed by property taxes, debt issued by the PEDC is serviced via their portion of the sales tax revenue (see "Sales Tax" below) and, therefore, has no impact on property taxes.

Property Tax Exemptions

When you apply and qualify for a homestead exemption on your principal residence, it reduces your tax bill by removing part of your home's value from taxation. Cities can elect to offer an additional exemption of up to 20% of the total value. While some municipalities offer no optional homestead exemption, the Town of Pantego offers the maximum optional homestead exemption of 20.0%. 

This is separate from the state-wide general residence homestead exemption and is typically added to any other qualified exemptions. Homeowners who are 65 years of age or over can apply for a $50,000 exemption. The Town also offers a disability exemption of $10,000 and disabled veteran exemptions ranging from $5,000 to $12,000.

Sales Tax
Sales and use taxes are collected on the sale of all tangible personal property or taxable services. The Town has a two percent (2.0%) local sales tax rate (in addition to the State's 6.25%) and is one of only three Tarrant municipalities that allocates a portion of sales tax to the reduction of property taxes. When you shop and dine in Pantego, one cent of tax revenue goes to the Town’s General Fund to support daily operations and services. The other cent is divided between PEDC projects (½ cent), the Streets Fund (¼ cent), and property tax relief (¼ cent). The Texas Comptroller of Public Accounts collects the total sales tax (8.25%) and then remits collections to the Town of Pantego quarterly after deducting an administrative fee.