Property Tax Rate

The Property Tax Rate is comprised of the Maintenance and Operations (M&O) Tax Rate and a Debt Service Rate. The M&O Rate includes line-items such as salaries, utilities and day-to day operations in the General Fund. The M&O Rate is .505978 per $100 valuation. The Debt Service Rate covers the interest and principal on bonds and other debt secured by property tax revenues, also called the “interest and sinking” or I &S Rate. The Debt Service Rate is .0956892 per $100 valuation, which will be applied to payments on the 2012 General Obligation Bonds, the Avenue L Street Repair Loan, the 2019A Certificate of Obligation, and the 2019B Certificate of Obligation.  This year the 2020 Unused Increment Rate of .014931 from the previous year's adoption of the No New Revenue Rate. The Unused Increment Rate is the rate equal to the difference between the adopted tax rate and the voter-approval rate before the unused increment rate for the prior three years Tex. Tax Code §26.013(a). In a year where a taxing unit adopts a rate by applying any portion of the unused increment rate, the unused increment rate for that year would be zero. This year the City of Shallowater adopted the Voter Approval Rate of .616598 per $100 valuation.