Norris council approves 2026 property tax rate
The Norris City Council on Tuesday, July 22, approved on second and final reading a new property tax rate of 88.5 cents per $100 evaluation for fiscal year 2026, which began July 1.
There were no objections to the new rate during a public hearing that was held just prior to the 6 p.m. meeting.
Approved on first reading by the council on July 14, the new rate was formulated to hold overall property tax collections to the same amount as the previous year’s, considering a countywide reappraisal that raised property value assessments significantly.
The new tax rate was provided to the city by the state Board of Equalization.
Even though property values have increased, state law requires local governments to set their new tax rates to maintain the same level of revenue that was received under the previous year’s tax rate, unless they take formal steps to raise the rates.
They are not permitted to benefit automatically from the new property assessments unless they go through the required formal process to raise their property taxes, which Norris has not chosen to do.
City Manager Adam Ledford and Mayor Chris Mitchell had said earlier that the city did not intend to raise taxes for the new fiscal year.
Norris’ new operating budget – which does not include water and sewer -- calls for spending $2.797 million, against projected general revenues of $2.2 million. The spending plan includes capital expenditures that would be offset by grant money.
Total local tax revenues are projected to be $1.2 million, including $788,000 in real property tax collections and $280,000 in local-option sales taxes, along with other lesser revenue amounts and sources.
Other money for the budget will come from “intergovernmental revenue” of $673,775, $197,860 in charges for administrative services, $6,500 from licenses and permits, $2,680 from fines and penalties, and $148,000 in miscellaneous revenues.
