Politics
Lubbock Cuts Residential Property Taxes, Boosts Road and Safety Spending
City documents show the new fiscal plan lowers residential property tax rates while directing more revenue from business valuations toward road maintenance and public safety in Lubbock.
How we reported this
The Lubbock City Council adopted its 2026-2027 fiscal year budget on June 30, which reduces the residential property tax rate by 2.5 cents per $100 valuation while raising the effective rate on commercial properties. This change applies to the roughly 85,000 residential parcels inside city limits and shifts a portion of the tax load onto businesses along the Loop 289 corridor and downtown.
Texas law requires cities to adopt balanced budgets each summer using certified property values from the Lubbock Central Appraisal District. The 2026 plan follows a 4.8 percent rise in total appraised values reported by the district in April, which would have increased bills for all owners without the rate adjustment. Local government revenue from property taxes funds about 42 percent of the city’s general fund operations.
Who pays less and who pays more
Homeowners in neighborhoods such as Tech Terrace and Kings Park stand to see smaller annual bills once the new rates take effect in January 2027. A typical $200,000 homestead could pay roughly $50 less, according to the city’s posted rate tables. Renters may see indirect effects if landlords pass along any net savings or costs through lease adjustments next year.
Owners of retail and office buildings face higher assessments. The budget document lists an expected $3.2 million in additional collections from commercial valuations, money earmarked for street resurfacing on 34th Street and overtime for police and fire shifts. Small business operators on Avenue Q have told local advocates they will review whether to raise prices or delay hiring.
Where the money goes next
The plan projects $312 million in total general fund spending, with 28 percent allocated to public safety and 19 percent to streets and drainage. Remaining funds cover parks maintenance and library operations on 18th Street. City staff will begin quarterly reports to the council in October to track whether revenue targets are met.
Residents can review the full budget document on the city website and submit comments ahead of the next council work session scheduled for August 12. The Lubbock Central Appraisal District will mail updated notices to property owners by mid-December.