The Dripping Springs City Council will soon vote to approve the city’s proposed ad valorem tax rate for the 2022–2023 fiscal year, setting a public hearing for the tax rate early this month.
In July, the council had proposed a tax rate of $0.19 per $100 valuation. After receiving its 2022 Tax Rate Calculation Worksheet from the Hays County Tax Assessor-Collector in August, the council voted unanimously to change the proposed tax rate from $0.19 to $0.1778 (per $100 valuation) to match the voterapproved tax rate given by the county. City Council will hold a hearing on the newly proposed tax rate at a meeting on Tuesday, Sept. 6 at 6 p.m.
The proposed rate — because it is the same as the voter-approved rate — would not require the city to hold an election.
The tax rate, if approved, would still generate more revenue than in 2021–2022. This means that, effectively, the City of Dripping Springs is proposing to increase property taxes, even though the rate itself is lower. The increase in revenue is, in large part, due to increased property values, new property construction and annexations throughout the previous year, according to the city.
In 2021, the median home price in Dripping Springs was $760,000, according to data from the Texas Realtors Association and the Texas A&M University Texas Real Estate Research Center. In May of 2022, according to the same data, the median home price sat at $950,000.
For a $950,000 home, Dripping Springs property owners can expect to pay about $1,689 in property taxes to the city — if the proposed tax rate is adopted.
The public hearing for the ad valorem tax rate will be held at the Dripping Springs City Hall, 511 W Mercer St.
