Mineral Wells Index, Mineral Wells, TX

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September 5, 2012

Many local entities proposing tax rates above effective rates

By LIBBY CLUETT | lcluett@mineralwellsindex.com

PALO PINTO COUNTY – Proposed effective tax rates are out for the counties’ taxing entities and for many – namely the cities of Gordon, Graford, Mineral Wells and Strawn – the effective rates dropped slightly compared to prior years.

An effective tax rate is the rate that would provide the taxing entity with about the same amount of revenue it received in the prior year based on the same properties taxed in both years. If property values rise, typically the effective tax rate will drop, and vice versa.

Two other factors influence the effective rate, according to Palo Pinto County Tax Assessor-Collector Linda Tuggle. One is the over-65 exemption, which freezes taxes when taxpayers qualify at age 65. The second factor is properties that are under protest. Currently, a market value of $94.9 million remains tied up in protest with the Palo Pinto County Appraisal District’s appraisal review board.

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