The Amarillo City Council Workshop held on August 5, 2025, focused primarily on the proposed property tax rates for the upcoming fiscal year. City officials discussed the implications of state law on property tax calculations and the upcoming steps for setting the tax rate.

The meeting highlighted that property taxes in Amarillo are determined by the Potter-Randall Appraisal District (PRAD), which sets property values annually. This year, the city anticipates a normalization of property value growth, moving from the significant increases seen post-COVID to a more stable growth rate of around 3%. The council noted that for residents aged 65 and those with disabilities, property taxes are frozen at the city level.

A key point of discussion was the upcoming vote on the not-to-exceed property tax rate, scheduled for August 12. This rate will be the highest the council can approve without triggering an election, as mandated by Senate Bill 2, which limits revenue increases from property taxes to 3.5% without voter approval. The council will conduct two additional readings of the property tax rate, with a public hearing set for September 16.

City officials explained the components of the property tax rate, which includes an operating and maintenance portion and a debt service component. The proposed tax rate for the upcoming year is approximately 43.07 cents per $100 of property value, which is about 5 to 6 cents higher than the no-new-revenue rate of 37.355 cents. This increase is primarily attributed to outstanding debt obligations.

The council emphasized the importance of transparency in the property tax process, noting that they will inform citizens through public notices and social media about the upcoming hearings and the implications of the proposed tax rates. The meeting concluded with a reminder that the overall property tax bill for residents is composed of various entities, with the city accounting for approximately 22% of the total tax bill, underscoring the need for public understanding of how property taxes are allocated.