Council reconsiders proposed FY 26 tax rate after revised property valuations

The College Station City Council considered new property tax rate calculations at a special meeting on Tuesday after receiving lower valuations than expected from the Brazos Central Appraisal District. The latest valuations were due to significantly higher litigation settlements.

Property values typically see only small adjustments when they are certified. However, the changes were more substantial this year in the multi-family and commercial areas.

Under the final calculations, the no new revenue rate is $0.4905, and the voter approval rate is $0.5118, which remains below the current tax rate of 0.5130. The Council can call a public hearing on a tax rate at the voter approval rate without calling an election. The City’s proposed FY 26 budget, presented last month, included an estimated 5% tax rate reduction to $0.48743 per $100 of valuation, which falls below the final no new revenue rate under the revised valuations.

In recent years, the City anticipated having a tax rate election based on the need for additional revenue for public safety investments, which requires consideration of a proposed tax rate before the certified values are determined. However, an election this year is not necessary thanks to cost savings achieved through departmental efficiency efforts and new revenue generated by an agreement with Texas A&M to provide fire services to the campus.

The City Council will also consider the impact of pending state legislation in the Special Session that could limit property tax revenues.

As part of Thursday’s regular meeting, the City Council will determine the tax rate for calculating the FY 26 budget. The Council is scheduled to hold a public hearing on that tax rate and vote on the tax rate and budget on Aug. 28.

>> 2025 Tax Rate Calculations
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