Updated Tax Rates
We have McKinney's proposed tax rates for the city and school district in the table below. Please read on to find out why the effective rate is an important way to gauge whether we're really getting a tax reduction or we're just getting a tax rate reduction that still increases our taxes paid.
The city of McKinney's City Manager is proposing a 1.5 cent reduction in the tax rate to $0.52517. On the 8/6 City Council meeting, City Council will be able to agree or suggest a higher or lower rate.
Even though this is a tax rate reduction, it is still a tax increase. A true tax rate reduction would have to be a tax rate below the effective rate.
This is why cities are required to publish the effective rate and say they are collecting more taxes than the previous year on the same properties.
"The effective tax rate is the rate the taxing unit needs to
generate about the same amount of revenue it received in
the year before on properties taxed in both years. If prop
erty values rise, the effective tax rate will go down and vice
versa.410 The actual tax rate depends on the budget adopted
by the governing body.
The rollback rate would provide cities, counties and special
purpose districts with about the same amount of tax levied
in the previous year for day-to-day operations, plus an extra 8 percent increase for operating expenses and sufficient
revenue to pay its debts in the coming year."
If the city wanted to collect the same amount of money from those of us who were here last year, our tax rate would 2 cents lower and the effective rate of $0.506288.
If the effective rate were adopted, the city would still get everything they got from those of us who were here last year PLUS the new growth this year PLUS the money in our two TIRZ.
Understanding our Tax Rates and Taxing Entities
There are many important moving parts that go into our taxes.
Everything starts with our property appraisals. Collin CAD is in charge of appraising our properties every year. Go here to learn about who Collin CAD is and what it does. Or go to Property Taxes 101.
Once our properties are appraised and disputes are resolved sometime in the summer, and after our taxing entities learn how much they'll be getting from citizens, they form their budgets based on what they need and want for the coming year. Then, the taxing entities decide on their tax rates. Citizens can be active and assertive all through this process by disputing their property tax appraisals, working with the city and City Council on being more efficient, or just by letting them know you care about this process.
Here are our current tax rates as of Fall, 2017:
McKinney Property Taxes: City, MISD, Collin County, & Collin