Property Tax History
Lancaster has taken some very hard hits in the recent past that surrounding communities have not had to deal with:
1994: Tornado destroyed over 250 homes and half of the Town Square
2000: Southwestern Bell restructured their operating business and no longer shipped out of the Lancaster warehouse, causing the City to lose forty percent of our budget income from sales tax
2008: Nationwide recession
2012: Tornado damage impacted the City’s operating funds
2020 – 2021 COVID-19 Pandemic
Since 2000, Lancaster has been focused on establishing our commercial, logistics, and industrial areas to offset the tax that is paid by the residential area. Our goal is to grow the commercial and retail area to bear more of the tax burden and relieve the residential. To date, the property tax for residential is at 41% and the commercial is bearing 59% of the tax burden.
Property Tax Rate Changes
In 2021, the property value increased to $3,572,339,009, an 18.7% increase from the previous years. The 2020 values were impacted by the pandemic. 2021 values show that values not only recovered but exceed pre-pandemic values by 16.72%. More recent data indicates a consistent rise in property value as of 2023 our value was $5,267,696,877 billion and in 2024 the valuations had risen to $6,556,867,678 billion.
Lancaster’s population in 2024 is estimated by North Texas Council of Governments to be 42,185. This supports that Lancaster is growing our commercial, logistics, industrial, and business base to offset the burden of the property tax on the residential. Lancaster has lowered its property tax for the past three years as values have increased. Commercial businesses contribute an estimated 59% of property taxes. Values have fluctuated during this time, but the City stayed constant and stretched the dollars to make adjustments as needed while still providing the services necessary. With the focus on quality retail and commercial development, along with Lancaster’s property values increasing, the future property tax rate may continue to be reduced.
In 2019 the Legislature for the State of Texas passed Senate Bill 2 which capped cities property taxes. The city is only able to capture 3 % of the increase valuation of a property each year. Although this is a positive for tax payers it presents challenges for a growing city such as Lancaster.
The Tax rate in 2019 was 0.867500. Due to the increase in property values the city of Lancaster consistently lowered the tax rate in each of the following years In 2021 the rate was lowered to $0.769287. The next three years of 2022 tax rate $.691822, year 2023 tax rate $.639004, and year 2024 the tax rate is $.604606. The current 2024 tax rate is lower than any of our Best Southwest cities. Our citizens pay lower taxes as compared to our neighboring cities.
Sales Tax growth from 2022 to 2024 is consistently trending upward with collection up by 22.15%. Much of this growth in sales tax is generated by new construction expenditures sourced to the City of Lancaster and new restaurants and retail establishments opening in our City.
The average taxable Home values has risen every year and for comparison in year 2022 the taxable value was $188,775 to the current year 2024 the average taxable value is $227,853.