Harlingen cuts tax rate while property values spur new revenue

HARLINGEN — Amid little protest, city commissioners are proposing to cut about 2 cents off the current property tax rate while generating $27.5 million in revenue.

Earlier this week, commissioners proposed adopting the so-called, voter-approved tax rate of about 52 cents per $100 valuation, down from the current 54 cents, based on a state mandate capping new revenue at 3.5%.

“This is the lowest tax rate in 23 years,” City Commissioner Michael Mezmar said during Wednesday’s meeting. “We haven’t increased taxes. There’s more properties to be taxed.”

This year, the Cameron County Appraisal District boosted the city’s appraised property values to $5.2 billion, up from about $4.6 billion last year.

Based in part on spiking reappraisals, the new tax rate would generate a total of $27.5 million in revenue, Kareem Abdullah, the city’s deputy finance director, said before the meeting.

In a public hearing, former City Commissioner Robert Leftwich spoke in opposition of the move.

Officials set a second public hearing for Sept. 4.

During their review, commissioners chose the voter-approved rate over the so-called no-new-revenue tax rate of 49 cents per $100 valuation.

Under the voter-approved rate, the city would generate an additional $1.45 million, calculations show.

“We’re proposing the voter-approved tax rate,” Mayor Norma Sepulveda said during the meeting. “That is what’s intended. When the Legislature capped it at 3.5%, it was with the understanding that most municipalities are going to be collecting 3.5% in addition, so that way they can keep up with the additional expenses incurred by a city. The law says all cities across the state can only have an additional 3.5% per year from the previous — and that’s it.”

Meanwhile, Commissioner Daniel Lopez described the city’s tax rate as one of Cameron County’s lowest.

During discussion, Commissioner Frank Morales, who cast the lone dissenting vote against proposing the voter-approved rate, warned some residents can’t afford to pay more taxes.

“We’ve having some people who are losing their homes so we need to be a little cognizant of what we’re doing,” he told commissioners. “How many are on the verge … because they cannot afford their tax rate?

But Commissioner Rene Perez said commissioners have been continuing to cut taxes.

“We’ve been cutting the tax rate and people are paying less every year to the city of Harlingen,” he said.

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