San Angelo Council Advances Tax Hike

SAN ANGELO, TX — The San Angelo City Council on Tuesday took the first step toward a 2026 property tax rate that would constitute a 3.29% increase. 

Council held the first reading and a public hearing on an ordinance to levy ad valorem taxes for tax year 2026, which funds the 2026-27 budget year. Members unanimously approved a motion advancing the item. A final vote to set and adopt the rate is scheduled for the Sept. 15 regular meeting. 

The proposed rate is $0.7947 per $100 of valuation — the same figure used in fiscal year 2026. The agenda motion states that if adopted, the rate would effectively constitute “a 3.29 percent increase in the tax rate.” The rate exceeds the no-new-revenue rate but does not exceed the voter-approved rate.

“The tax rate is proposed at 0.7947 per $100 valuation and remains flat from Fiscal Year 2026,” the agenda says. “This will set the maximum rate that City Council can adopt. The proposed rate will be below the 3.5% cap that would’ve allowed Council to increase from the prior year’s tax rate by 0.0195 per $100 valuation.”

The rate would be allocated the same way as the current year:

• 0.6238 for maintenance and operations in the general fund
• 0.0072 for maintenance and operations in the street infrastructure fund
• 0.1637 to pay annual interest and maturities and create debt service funding to discharge outstanding bonded indebtedness

The ordinance would not change existing exemptions, including the 20% homestead exemption for primary residences. Taxes would be considered delinquent Feb. 1, 2027.