The Hays County Commissioners Court adopted the Hays County Budget and an increased tax rate for fiscal year 2026, which starts on Oct. 1.
The increase tax rate is 39 cents ($0.3999) per $100 valuation of property, which is over 4 cents more from last year’s. It is expected to raise $16.9 million in revenue from property taxes, which is an 11.27% increase from fiscal year 2025, according to Hays County Budget Officer Vickie Dorsett.
According to a press release on the fiscal year 2026 adopted budget, new property this year will increase the property tax revenue to $6.9 million, and the average home value is $460,169.
The Hays County Central Appraisal District (Hays CAD) sets the values of homes, while the county government sets the tax rate. According to Dorsett, this means counties can benefit from new homes or improvements because those values are not in the “no-new-revenue rate” and counties or residents can live off.
“If you have tremendous growth in your county, then you get the benefit of all of the new growth within your footprint,” Dorsett said. “If values remain flat, then you don’t see increases in your tax revenue because your home values are generally flat.”
This also means a tax rate increase doesn’t automatically means taxes will increase, as it varies based on individual property value. Dorsett explained that after the housing market boomed and home values increased in 2021-22, the county was able to drop the tax rate.
“The values of the homes are coming down now, and so when your values come down, your tax rate may have to go up to provide the same amount of services to your constituents,” Dorsett said.
At the Sept. 16 public hearing, some residents expressed negative feelings about the tax rate increase or how the county’s funds were being used. Hays County resident Diana Boyd spoke on behalf of her and her husband.
“I would like to express my encouragement for you all to not raise taxes,” Boyd said. “We are retired, and it’s very difficult to keep up with the taxes when you’re on a fixed income.”
After the 2024 Road Improvement Bond was ruled void because of its violation of the Texas Open Meetings Act in June, the court moved forward on posting a notice of intention for the issuance of Hays County, Texas Combination Tax and Revenue Certificates of Obligation (CO) that will include projects from the voided road bond program at the July 29 commissioners court meeting. The same tax rate increase of 2 cents per $100 of value that was approved for the 2024 road bond will occur if the certificates are issued.
“So two pennies on our tax rate generates over $8 million,” Dorsett said. “Two pennies of our tax rate went to our increase in our debt rate, and that debt rate increased because of the 2024 voter approved road bond [now COs].”
The American Rescue Plan Act of 2021 (ARPA) was national funding for response and recovery from the effects of COVID-19. Hays County previously received over $44 million in ARPA funding in 2021 and 2022. 22% or approximately $10.5 million of this went toward additional judicial services such as the mental health specialty court, the pre-trial diversion office, a magistrate judge and contracting with a company for the public defender’s office.
According to Dorsett, there is no longer ARPA funding to put toward these programs, so they will have to be funded from the general fund, and represent a one and a half cent ($0.015) impact on the increased tax rate.
Out of the total expenditures for the fiscal year 2026 budget, 14% of it is toward “Community and Public Service.” This is an increase from Hays County Fiscal Year 2025’s budget expenditures where 2% was set aside for community and public service. Dorsett said this was because of the Hays County 2020 Parks and Open Space Bond program and projects that will be funded this year.
“Our commissioners want to provide these green spaces,” Dorsett said. “That’s important for them, for our constituents.”
According to the press release, total funds approved were $373.8 million, which puts $248.2 million to operating funds, $55 million to debt funds and $70.3 million to construction funds.
“Our responsibility is to balance fiscal accountability with the needs of our community, and I believe this budget strikes that balance for the people of Hays County,” Hays County Judge Ruben Becerra wrote in the press release.
