PRESIDIO COUNTY — After consulting with tax attorneys, the state comptroller, and the Attorney General’s Office, Presidio County officials said they will continue with the property tax rate approved last month, which will allow them to keep $463,000 in revenue that was at risk to be lost because of an error in counting days.
The Commissioners Court had adopted a de minimis rate, which allows counties to set a rate higher than a voter approval rate. The de minimis rate allows small entities to raise more revenue than the standard 3.5% cap on new revenue under state law.
However, to adopt a de minimis rate, counties must do so at least 71 days before a general election, which is set for November 3 this year. The court’s adoption came only 70 days before the election. Failing to meet that requirement usually means the county would have to go back to the voter approval rate, which would mean the loss of $463,000.
County Attorney Blair Park said the first thing state officials told local officials was that you can’t change a tax rate once it’s adopted. They also pointed out that Presidio County’s rate increase over the voter approval rate was not high enough to trigger an automatic election on the rate. Therefore, the 71-day requirement shouldn’t apply, because it is intended to give officials enough time to prepare an election ballot.
The county’s rate above the voter approval rate also was not 8% or higher, meaning that voters could not petition for an election.
Nothing in state law indicates that these circumstances invalidate the 71-day provision, but nevertheless, on the guidance of officials and attorneys, the county kept its de minimis rate and will move on with the new budget year under that rate starting October 1.
