THE WOODLANDS, TEXAS (August 25, 2022) – The Woodlands Township’s Board of Directors unanimously proposed its lowest tax rate in its 12-year history at a 2023 Budget Workshop meeting on Wednesday, August 24, 2022.
All seven (7) Directors voted on a proposed tax rate of $0.1875 cents per $100 of appraised value for the 2023 fiscal year. This proposed tax rate is down a full 16% from the current tax rate of $0.2231. The final tax rate, which will require a vote by the Directors, is expected at another meeting in early September.
“This is a historic day in The Woodlands,” said Township Chairman of the Board Gordy Bunch of the proposed tax rate. “This Board and previous Boards and staff have put the Township in an excellent position financially which allows us to enhance our high-level services and amenities that residents recently showed they appreciate in the 2022 Resident Survey while lowering the tax rate to a historic low.”
The Woodlands Township recently conducted its Resident Survey and achieved the highest rankings ever in its biannual survey.
“In a span of six years, we have dealt with many natural disasters, a world-wide pandemic, the highest inflation in 50 years, yet the Township is in strong financial condition due to great decisions recommended and made by staff and several boards over the years,” Chairman Bunch said. “Our residents and businesses should see a much lower tax rate and resulting tax assessment reduction from The Woodlands Township.”
Since 2010, The Woodlands Township’s Board of Directors has lowered the tax rate by 55.4%.
The Woodlands Township Board was able to fund many new initiatives due to strong financial policies that have been in place for a number of years. Funding proposed in the 2023 Township Budget includes:
The Woodlands Township’s Board of Directors was able to propose the rate and make budget decisions based on diverse revenue sources such as robust sales and hotel tax collections as well as not being burdened with unfunded pension costs or high debt.
Debt balances have been reduced $76.8 million or 72% over the past 10 years, and the retirement and refinancing of bonds at historically low rates have resulted in $12.5 million in interest expense savings.
The Woodlands Township, like other local governments in Texas, is required to follow Truth-in-Taxation laws. These laws establish a “no-new-revenue rate,” which is the tax rate that would impose the same amount of taxes as last year if you compare properties taxed in both years. The Township’s proposed tax rate of $0.1875 is lower than the no-new-revenue rate of $0.1964. In practical terms, this means that the proposed rate more than offsets the impact of higher appraised values and will reduce property taxes paid to the Township by approximately $2.0 million.
The Board of Directors, with staff and general public, met three consecutive days regarding the budget between August 22-24, 2022. The meetings were open to the public and can be watched online at www.thewoodlandstownship-tx.gov/meetingvideos.
For additional information, please visit www.thewoodlandstownship-tx.gov.