Ad Valorem Taxes
The City's current ad valorem tax rate is $0.40000 per $100 of valuation of which $0.349714 is for Maintenance and Operations of the General Fund and $0.050286 is for bonded debt. For fiscal year 2012-2013 the city's total taxable assessed value was $1,242,804,063 with the average home taxable value of $85,306 in Gregg County and $75,420 in Rusk County. The City grants a 20% homestead exemption and an additional $15,000 exemption for homeowners over 65 or disabled homeowners.
The City's total tax rate collection is 8.25% in Gregg County and 7.75% in Rusk County. The State's share is 6.25%, Gregg County .5%, Rusk County 0%, City 1.0% and Economic Development .5%. The City's 1% is credited to the General Fund and is not pledged to the payment of bonded debt. Collections and enforcements are effected through the offices of the Comptroller of Public Accounts, State of Texas, who remits the proceeds of the tax, after deducting a 2% service fee, to the City monthly. In May 1990, the voters of the City approved the imposition of an additional sales and use tax of 0.5% for economic development. Collection for the additional tax went into effect October 1, 1990. The sales tax for economic development is collected solely for the benefit of Kilgore Economic Development Corporation, and may be pledged to secure payment of sales tax revenue bonds issued by the Corporation.