MIDLAND, TX (KWES) - The city of Midland is looking to increase tax rates. The city council said even though the economy is down, the population continues to grow and they need the money.
With the proposed rate, a house valued at $200,000 would have a tax bill of $799.36.
The homeowner would pay about $40 more per year, a 3 percent increase of the current rate.
The city of Midland continues to see growth. Mayor Jerry Morales said a tax increase is needed to help the budget.
"Infrastructure in my opinion will never go away," said Morales. "We received a report on our comprehensive plan talking about Midland and the areas that are growing."
The original proposed tax increase was a 4 percent increase, the council has now adjusted the rate to a 3 percent increase.
The current rate is 38.0480 cents per $100 valuation, the proposed rate is 39.9679 cents per $100 valuation. The new proposed rate would increase under 2 cents per $100.
The city said this increase would help growth and the economy overall.
"We saw a report on our northeast side of Midland, Todd Road in particular," said Morales. "The population increase out there, what the roads look like. We talked about an outer loop and an annexation north of Midland to the west. How do we handle that growth and how are we going to tackle that from a monetary standpoint?"
Even though infrastructure isn't growing as fast as it was during the oil boom, the growth is still steady. The city said with growth and the reduced budget, a tax increase is necessary.
The second reading will take place September 13. If passed, the new tax rate will kick in October 1.