Tyler Council Opposed to Senate Bill 182

TYLER — The Tyler City Council unanimously voted Wednesday to request support from Tyler’s Texas Legislative delegation to oppose Senate Bill 182. The bill is related to municipal revenue caps. According to a city news release, Senate Bill 182 has been introduced into the 84th session of the Texas Legislature by Senator Paul Bettencourt from District 7. This proposed legislation was filed on Nov. 13, 2014, read on Jan. 27, 2015, and then referred to the Finance Committee.

This legislation seeks to limit the percentage a municipality may increase its property tax rate in a given year. According to the news release, this bill will have an inequitable impact on cities that have historically worked to keep their tax rates low, as the increase amount allowed would be a percentage of their current rate. In essence, with the 4 percent cap proposed, a city with a 77 cent tax rate could increase 3 cents each year. However, a city like Tyler whose current rate is only 22 cents could only increase 9/10 of 1 cent. “When we maintain the lowest tax rate of any City above a 16,000 population, and with the strong growth in our community, this bill will cause Tyler to be above this threshold,” said Mayor Martin Heines (pictured).

Through local control and direction from voters in Tyler, the city has reduced the tax rate more than 60 percent since the mid-1990s, when the city Blueprint was adopted, according to the release. Officials say Tyler now has one of the lowest tax rates in Texas, a AAA bond rating, and no general obligation (tax-supported) debt. This is all possible due to programs like the half-cent sales tax, business planning, Lean Six Sigma, City University, and the Performance Excellence Program, according to the news release. “Because of our low tax rate and the strong growth in our economy, typical increases in property values will likely trigger a rollback election under this legislation,” said Heines.