Live Oak County chief appraiser Willie James told the council that if the city charged the same rate of $.58649 as last year it would collect an extra $26,000.
However the effective rate which is the rate that would allow the city to collect that exact same amount as last year is $.551 and the new proposed rate for this year is $.561. So while the tax rate is dropping it is called a tax rate increase because they are charging above the effective rate.
James told the council the increase in collections was due to some commercial property worth approximately $5.7 million was left off the tax roll and when that was added it would bring in an additional $32,750, for a total of an extra $47,700.
While the council members and mayor were excited to hear this news, they wanted to be fair to the citizens and ask James to start calculating using a lower tax rate.
They finally settled on a rate of $.56149 per $100 property valuation. At a 93 percent collection rate, which is the rate of taxes the city was able to collect last year, the council stands to gain $37,402 more than it had last year.
The council approved the new rate 4-0 (council member David Cantu was absent).
The council set the dates of Aug. 29 at 10 a.m. and Sept. 5 at 5:30 p.m. for the two public hearings required before a tax rate can be made official.