What is Revenue Neutral?

Revenue neutral is when a taxing jurisdiction budgets the exact same amount of property tax
revenue, in dollars, for the upcoming budget year as they did for the current
i.e. If a city uses
$1 million of property tax revenue in 2023, being revenue neutral means they
plan to only use $1 million in 2024 as well. 

If a taxing jurisdiction plans to use more property tax revenue in the next budget year compared to the current year, even $1 more, they would exceed revenue neutral and need to hold a public hearing.

Revenue Neutral Rate Example

Show All Answers

1. What is Revenue Neutral?
2. What is the Revenue Neutral Rate?
3. Why would the City, or any jurisdiction, want to increase revenue?
4. Will my property taxes increase as much as my appraised value increased?
5. Why are we letting you know about the taxpayer notification form and RNR?
6. What is the City doing to offset the increase in Appraised Property Values?
7. What exactly will be on the taxpayer notification form?
8. Where can I find more information regarding budget and property valuation?
9. What are ad valorem property taxes?