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Montgomery County approves first tax increase in 5 years
News Update

Montgomery County approves first tax increase in 5 years

Montgomery County Commissioners passed a $466.55 million budget on Aug. 15 while county officials await the bond election in May. In 2025, the county will use bonds to finance a number of capital improvements.

What you need to know

After three days of budget workshops, county commissioners approved a tax rate of $0.3790 per $100 of value, marking the first rate increase in five years and narrowly avoiding a voter-approved tax rate election (VATRE).

“I don’t know how else to do this,” said Montgomery County Judge Mark Keough. “We’ve struggled time and time again. I don’t know what else to do, but I’m satisfied that we’re taking care of the people of Montgomery County.”

Both 3rd District Commissioner James Noack and 4th District Commissioner Matt Gray opposed the tax increase out of concern for the tax burden on homeowners. However, Budget Director Amanda Carter told commissioners that the funding issues were primarily due to important, necessary improvements in law enforcement and information technology to meet the needs of departments across the district.

The collapse

As part of the budget process, the county identified an additional funding need of nearly $9.5 million, above the total base budget of $457 million. The largest expenses included:

  • 3.3% cost of living increase: $6.18 million
  • 11 new auxiliary police officers: $2.28 million
  • Technology Upgrade: $321,638

John Robuck, senior counsel for BOK Financials, also provided an updated presentation on the new tax rate. Robuck told the court that a $450 million bond, if approved, would have no impact on the tax rate, while a $500 million bond would increase the debt service portion of the tax rate by $0.02.

Stay tuned

Because the tax rate for the 2024-25 fiscal year is higher than the tax rate without new revenue, Texas law requires a public hearing to give citizens an opportunity to comment on the increase. The public hearing is scheduled for September 6 at 9:30 a.m. in the Alan B. Sadler Building at 501 N. Thompsons St. in Conroe.

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