Townhall meetings scheduled for Arlington residents to discuss and voice their opinions regarding a potential surge in property taxes
Arlington Proposes 3-Cent Property Tax Increase to Address Budget Deficit
The Arlington City Council has proposed a 3-cent property tax increase for 2026, aiming to generate over $11 million in additional revenue to address a projected $25 million budget deficit. The proposed tax rate hike would cost the average homeowner about $12.28 more per month.
The deficit is due to several factors, including no property reappraisal in 2026 by the Tarrant Appraisal District, an unusually high number of successful property value protests, and new factors such as a business property tax exemption and traveling housing finance corporations affecting the city's revenue base.
The proposed tax rate increase would result in the owner of the median-valued home paying $2,078.34 in 2026, up from the current rate of $1,966.06. However, due to the homestead tax exemption of 20%, the same homeowner would pay the city $1,662.67.
In addition to the tax increase, the city is considering other measures to reduce the deficit, including closing buildings, cutting jobs and programs, and raising fees. The proposed tax increase could also help the city avoid budgetary challenges in 2027, with another $3.7 million earmarked for one-time investments and offsetting future changes.
The public will have the opportunity to voice their opinions at two town halls scheduled for August 19 and August 21. A formal city council vote with a public hearing is expected on September 9, 2025. The public hearing for the budget will take place at the same meeting as the first vote on the tax rate.
It is worth noting that the homestead tax exemption claimed in Arlington is the largest claimed in the city, with more than 62% of all tax accounts claiming it. The proposed tax rate increase would also result in an average increase of $7 a month in fees for utilities like water and sewage.
[1] City of Arlington budget documents [2] Arlington City Council meeting minutes
- The proposed property tax increase in Arlington might have significant implications for residents' personal-finance, as the city plans to raise $11 million via a 3-cent hike to tackle a budget deficit.
- The suggested increase might prompt a rise in general-news discussions, particularly regarding the city's financial management given factors like no property reappraisal in 2026 and the business property tax exemption.
- Community members concerned with the matter may wish to attend the town halls on August 19 and 21, voice their opinions, and learn about potential budget changes and changes to fees like water and sewage.
- As the tax rate increase impacts the city's revenue base, it's essential to monitor the situation further and examine its long-term effects on Arlington's economic health and political landscape.
