Truth in Taxation
Developing the annual operating budget and adopting the ad valorem (property) tax rate necessary to support it are primary functions of any taxing jurisdiction's governing body. Because the Fiscal Year (FY) begins on October 1, the adoption of these two key pieces of legislation typically takes place in September of each year.
The transparency of this process is increased via truth-in-taxation (TNT) requirements meant to ensure that the public is informed of any proposed increases. As such, taxing units within the State of Texas are subject to certain requirements when holding public hearings, considering budgets, and setting rates to impose property taxes.
Senate Bill 2 (86th Legislative Session) made several significant changes to this process and its terminology. Current law requires that, for any entity proposing to adopt a property tax rate exceeding the lower of either the voter-approval tax rate (VATR, previously called the "rollback rate") or the no-new revenue tax rate (NNR, previously called the "effective rate"), the taxing unit's governing body must vote to place the proposal to adopt such a tax rate on an agenda as an action item. If the motion passes, the governing body must then schedule a public hearing on the proposed tax rate and notify the public of the date, time, and location of this hearing. The Town Council must always hold a public hearing on the proposed annual operating budget. The public is encouraged to review the proposed budget online or in the City Secretary's Office in Town Hall (1416 S Bowen Road).
Members of the public are also encouraged to provide input on the proposed budget and tax rate through any means available and/or to attend any work sessions and public hearings held during the budget process. Comments can be submitted in the following ways:
Real Property (Ad Valorem) Tax Rate
The Tarrant Appraisal District (TAD) determines the taxable value (appraisal) of all taxable real property within the Town of Pantego. Each October, annual property tax statements are mailed to property owners (or their mortgage company) by the Tarrant County Tax Assessor-Collector as the Town contracts for both the invoicing and collections of property taxes, which are remitted to the Town. The Town's fiscal year (FY) runs from October 1 through September 30. Every year, Town Council adopts an annual operating budget and the supporting property tax rate, usually in September, just before the FY begins. The total tax rate is comprised of two elements — "maintenance and operations" (M&O) and debt service or "interest and sinking" (I&S).
This rate is assessed per $100.00 of assessed value. Most property in Pantego will also be subject to taxation by Tarrant County, Tarrant County Hospital District, and Arlington ISD. View the rates and exemptions for these jurisdictions (and all other taxing entities in Tarrant County), look up your property appraisal account, and get information about protest filings by visiting TAD. For questions concerning your tax invoice or payment deadlines, you would, instead, contact the Tax Assessor.
| Property Tax Rate for Tax Year 2022 | |
|---|---|
| A public hearing on the Tax Rate was held Tuesday, September 13, 2022, at 6:30 p.m. at Town Hall. The Town Council adopted the following rate during the same meeting. | |
Interest and Sinking (I&S) - Debt Service | $0.044122 |
Maintenance and Operations (M&O) | $0.431809 |
| Town of PantegoTax Rate | $0.475931 |
Sales and Use Tax
Sales and use taxes are collected on the sale of all tangible personal property or taxable services. The Town of Pantego has a two percent (2.0%) local sales tax rate in addition to the State's 6.25%. One and one-quarter percent (1.25%) of the Town's portion of sales tax supports the General Fund; one-quarter of one percent (0.25%) is allocated to the Street Improvement Fund; and one-half of one percent (0.50%) is allocated to the Pantego Economic Development Corporation (PEDC). 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. Sales tax has become a growing portion of tax revenue for the Town as the retail and restaurants in our community continue to thrive and expand.
| Local and State Sales Tax Rates | |
|---|---|
| Local Base Tax Rate (General Fund) | 1.25 % |
| Street Improvement Assessment | 0.25 % |
| 4B Economic Development Tax Rate | 0.50 % |
| State of Texas Tax Rate | 6.25 % |
| Total Sales and Use Tax Rate | 8.25 % |