Ad Valorem Tax
The City levies ad valorem (property) taxes on land, buildings, and some business personal property within the City limits. This tax is used for two primary purposes:
- A portion of ad valorem taxes is dedicated to the debt service on general obligation debt. This type of debt is issued to build large capital and infrastructure projects, such as fire stations, streets, and parks.
- The remainder of ad valorem taxes is used to fund general municipal operations, such as police, fire, streets, parks, and administration.
Ad valorem taxes are levied based on taxable values as of January of each year. Taxes are billed in October of that same year, and become delinquent February 1st of the next year.
The current tax rate is $0.323169. View the following historical tax rates.
|Fiscal Year||Tax Year||M&O Tax Rate||I&S Tax Rate||Total Tax Rate|
More information about the tax rate including historical rates and levies can be found in the tax section of the budget document.
Tax Year 2022 tax rates for all McLennan County taxing entities.
Property value information can be obtained from the McLennan County Tax Appraisal District.
Truth in Taxation
Property owners have the right to know about increases in their properties' appraised value and to be notified of the estimated taxes that could result from a new value.
The Truth in Taxation website provides information concerning proposed property taxes that may be imposed on properties by local taxing units, the dates and locations of public hearings concerning budgets and tax rate adoption as well as other important information. The intent of the website is for the taxpayer to:
- Search for his property in order to view the tax rate information
- Use PACS taxable value and the entity entered tax rates to calculate the tax amounts per rate
The City levies a 1.5% sale and use tax on taxable transactions within the City limits. The total combined sales tax rate for Bellmead is 8.25%, consisting of:
- 6.25% State of Texas
- 0.50% McLennan County
- 1% City of Bellmead - general government purposes
- 0.25% City of Bellmead - street maintenance purposes
- 0.25% City of Bellmead - economic development purposes
More detail on sales tax and Bellmead's historical sales tax collections can be found on the State Comptroller's website.
Franchise fees are paid by utility companies providing service within the City of Bellmead, and are assessed as a % of utility billings. This fee is sometimes called a tax, but it is actually a few for the utility's use of public streets, alley's, rights-of-way and easements owned by the City of Bellmead. More information on franchise fees and rates can be found in the General Fund section of the budget document.
The City levies a 7% tax on rooms or space in hotels within the City of Bellmead. In addition, the State of Texas levies a 6% hotel tax and McLennan County levies a 2% tax, making the combined rate 15%. By State law, revenues from the City's hotel tax must be used to promote tourism and the convention and hotel industry in Bellmead.
The City of Bellmead levies a tax upon the occupant of any room or space furnished by any hotel which such costs of occupancy is at the rate of $2 or more per day, at the rate of seven percent of the charge for the room.
Occupant shall mean anyone who, for a consideration, uses, possesses, or has a right to use or possess any room or rooms, sleeping space, bed, or facility in a hotel under any lease, concession, permit, right of access, license, contract or agreement.
Hotel has the meaning as assigned by Section 156.001 of the Texas Tax Code as may be amended.
Reporting Requirements for Hotel Tax
Hotel tax reports and payments are due on the last day of the month following each quarterly period; April 30, July 31, October 31, January 31.
Failure to collect the tax, not filing a report, or filing a false report is a misdemeanor under City ordinance. In addition, such person who fails to remit the tax imposed by this article within the time required shall forfeit 5% of the amount due as a penalty, and after the first 30 days shall forfeit an additional 5% of such tax. Delinquent taxes shall draw interest at the rate of 10% per annum beginning 60 days from the date due on the tax imposed by this article.
Please note that audits may be done from time to time on hotel tax payments from hotels or short term rentals. Please keep copies of all exemption forms and revenues/bookings in case an audit is conducted on your property.