Kerrville City Council approved raising property tax rate 8%

The Kerrville City Council approved raising the property tax rate by nearly 8% on Tuesday night.  City officials also approved the city’s budget for the fiscal year 2026 on a second reading at Tuesday’s meeting.

State law allows taxing entities that have declared a disaster to use a special method with a higher percentage to calculate property tax rates.  This method does not require voter approval.  In a normal year, most Texas taxing districts calculate their voter-approval rate using a 3.5% revenue growth rate.  However, in the year following a disaster, districts can calculate the voter-approval rate with an 8% growth rate,

At a September 9 city council workshop meeting, Kerrville City Manager Dalton Rice said choosing the disaster rate instead of the 3.5% voter-approval rate could bring the city an additional $336,817.

City officials also said property owners affected by the Hill Country floods will have until October 20, 2025, to file a disaster exemption for these taxes.