Amarillo College is proposing a 13.59% increase in its property tax rate as the college grapples with declining taxable property values and reduced state funding heading into the 2026-27 budget year.
The Amarillo College Board of Regents voted 5-2 to advance a proposed tax rate of $0.24670 per $100 of assessed value to a public hearing at its Aug. 25 regular meeting. Regents Peggy Thomas and Irene Hughes voted against the proposal.
The proposed rate is about four cents higher than the college’s 2025 property tax rate.
Even with the increase, Amarillo College expects to collect about $35 million in property tax revenue — approximately $1 million less than anticipated under its current budget.
The revenue decline comes despite an increase in overall property values within the college’s taxing district.
Total property values increased by approximately $50 million. But that growth was more than offset by a significant increase in property tax ceilings for homeowners who are 65 or older or have disabilities, resulting in a net decrease of about $149 million in taxable property value.
AC President Jamelle Conner told regents that the financial impact has already been factored into the college’s proposed budget.
“We’ve already lost a million dollars in revenue with the budget that I brought to you that incorporates and includes this increase,” Conner said.
The property tax revenue decline adds to financial pressures Amarillo College is already facing for the 2026-27 budget year. State funding for the college has also decreased.
Despite those challenges, the proposed budget seeks to maintain existing college services while adding $5 million to AC’s fund balance, or savings.
The numbers create an unusual situation for the college and taxpayers: Amarillo College is considering a double-digit percentage increase in its tax rate while expecting to receive less property tax revenue overall.
The difference stems from the distinction between the tax rate and the amount of property subject to taxation. While the rate determines how much the college can levy per $100 of taxable value, tax ceilings limit how much some homeowners can be required to pay even when property values or tax rates increase.
With those ceilings growing across the college’s taxing district, a larger portion of property value is effectively restricted for revenue purposes.
The proposed $0.24670 rate has not received final approval. The regents’ vote moves the proposal forward for public consideration before the board takes final action.
The 5-2 vote also showed some division among regents over moving ahead with the higher rate, with Thomas and Hughes opposing the measure.
