Fulshear council proposes a tax rate increase that would be one of the largest in years

FULSHEAR, Texas (KTRK) -- Fulshear city leaders said there are two things driving what could be one of the largest tax rate increases in years: less construction and a voter-approved bond.

Fulshear considers three-cent tax increase

This week, council discussed a possible tax rate. In the end, they agreed to propose a three-cent tax rate increase.

If approved, the tax rate would essentially climb from 16 to 19 cents. Looking over budget documents from the last decade, it would be the second largest increase during that time frame.

Fulshear officials said that for the average homestead appraised value of $492,428, taxes would increase by $139.81. Council could consider a lower rate next month.

If they do, city manager Zach Goodlander said it could impact items. "Essentially, we just eliminate several projects from the budget," Goodlander explained. "The drainage projects and park projects. Those would be removed from the budget."

Here's what's driving the possible tax rate increase

Goodlander said there are two main things driving the tax rate proposal, including less construction in the city.

He said that although recent Census data show the city is one of the fastest-growing in the country, things are starting to cool.

"Our building inspectors used to do 200 inspections a day," Goodlander said. "Now the average is 60 to 70."

Because less construction is leading to fewer permit dollars, Goodlander said the city is eyeing property taxes as a potential source of income.

Goodlander added that a parks bond approved by voters in May 2025 is also leading to the higher tax rate.

Goodlander said the voter-approved bond is leading to about two-thirds of the tax rate increase.

"For a $400,000 home, the proposed tax rate of $0.193 would be approximately $100 more than they paid last year, but $65 to $70 of that is the parks bond," Goodlander explained.

'Stop spending': Fulshear neighbors fear getting priced out

The tax rate proposal isn't sitting well with some. John Decharinde told ABC13 if approved, the higher tax rate would impact his finances.

"We're basically getting priced out of our own house," Decharinde said. "Everything is going up so much that it's becoming a real problem to live in the house we've lived in for 15 years."

Nothing is a done deal. Council will consider the tax rate at its Sept. 1 meeting and could vote on it that night.

Staff said even with the increase, it would be one of the lowest rates in the county. Still, some neighbors wish they could balance the budget another way.

"Stop spending so much money," Decharinde said. "Just cut back a little bit. Everybody else has to cut back. I think it's time for the government to cut back."