'Gut punch': Kerrville slaps homeowners with tax hike after July 4 floods

The 7.98% property tax rate increase was approved on Tuesday, September 23, during a city council meeting that drew angry residents in strong opposition to the tax hike.

City officials have the option to keep the new tax hike for three years or until the city’s total taxable value exceeds $3.6 billion without a vote, which angered residents even more. 

“This tax increase is basically a gut punch to the flood victims in the city,” Jacklynn Murkey, a Kerrville resident said during the meeting. 

The city set a tax rate of $0.5711 for next year, about 8% higher than last year’s rate. The increase is compared to the state’s “no new revenue” rate, which is usually capped at 3.5%. Normally, going over that cap requires voter approval — unless there’s a disaster declaration in place. The nearly 8% increase is over he “no new revenue” rate and is not the base, the city emphasized.

Because the flood overlapped with the city’s typical budget deadline, it is still too early to determine the full financial impact of the damages or Kerrville’s lost property value and revenue. Councilmembers voted to give themselves time to amend the 2026 budget once those losses are calculated. 

Without the increase, the city’s general fund is expected to only generate an estimated $336,000.

Residents voiced their opinions at Tuesday’s meeting.

“If you’re living paycheck to paycheck, you don’t have $40 anywhere,” said McKenna Baxley, a Kerrville resident. “It’s unsustainable for the working class of Kerrville.” 

Another resident said the new budget is widening the gap between rich and poor. 

“… It’s basically eliminating the middle class in the city of Kerrville,” Murkey said.

“Our income isn’t going up at the same rate that you’re raising cost of government,” said another local, George Baroody. “If you’re living paycheck to paycheck, that means all your bills are barely paid. You take 10 dollars out, you might as well take a thousand out, because I’m now not going to be able to pay all my bills that I was paying before, unless I find a cut somewhere else.” 

Property owners impacted by the deadly flood still have time to file a property tax exemption through October 20.