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Latest tax rate cut expected to lose city of Houston $40+ million

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HOUSTON – On Wednesday, the city of Houston approved a tax rate cut of about 3.4%.

The tax cut is expected to save the average household about $49, officials said. It's a cut of 2 cents.

The tax rate decrease is the fourth cut in the last five years due to the revenue cap.

The cut is expected to lose the city $40 million.

The tax cut may not actually save residents money, however, because the county taxes and home appraisal values are rising.

Two council members voted against the tax decrease.