Canyon, Texas, weighs 4% property tax hike and Atmos gas rate settlement

The Canyon City Commission discussed two issues that could affect household budgets in the Texas Panhandle: local property taxes and natural gas costs.

For families in Canyon, both can play a major role in the annual cost of staying housed, heated, and financially stable.

Here's what to know

Canyon City Commissioners were slated to meet in the Commission Chambers at Canyon City Hall, where they expected to hear from the public on a proposed ad valorem tax rate for fiscal year 2026-2027 and weigh a negotiated rate settlement involving Atmos Energy, according to MyHighPlains.com.

Agenda records list the proposed property tax rate at $0.53413 per $100 of value. Those same documents say the rate would be 4% higher than the 2025-2026 level of $0.51181.

Before exemptions, that increase would amount to roughly $22.32 per $100,000 in taxable value per year.

Also before commissioners is a resolution tied to Atmos' 2026 Rate Review Mechanism Filing and a proposed agreement between the utility and the Executive Committee of Cities Served by Atmos West Texas.

The meeting agenda also included the Board of City Development's 2025-2026 budget recommendation, a possible contract for short-term rental tax compliance services, and a Board of Trustees election for the Texas Health Benefits Pool.

More background

Changes in property taxes can directly raise costs for homeowners and filter into rents over time, while decisions about utility rates can influence what customers pay each month for gas service.

In Canyon, located just south of Amarillo in Randall County, those two cost pressures stand out because they are both up for discussion at the same meeting. One concerns the revenue residents provide to support city services; the other involves a fuel source many households use for cooking and heat.

What's being done?

Residents are expected to have an opportunity to speak as commissioners take public comment and hold a public hearing on the proposed tax rate before any next steps are taken.

The Atmos item stems from a rate review process involving multiple cities, with the proposed settlement addressing how some of those utility charges may be billed to customers.

A potential agreement with Azavar and/or Localgov could help Canyon strengthen collection of taxes already due, while executive-session talks may continue on property issues, personnel matters, and economic development negotiations.

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