(a) 
Ad valorem taxes.
The city council shall have the power within the city to annually levy and collect taxes in an amount not exceeding two and one-half percent (2½%) of the assessed value of property situated in the city which is not exempt from taxation by the Constitution and Laws of the State of Texas, for all purposes, including the payment of interest and sinking funds for all bonded indebtedness, and for all other purposes, and shall at the time of the levy provide first for the payment of the interest and sinking funds, and allocate the remainder as may be required.
No debt shall ever be created by the city unless at the same time provision be made to assess and collect annually a sufficient sum to pay the interest thereon, and create a sinking fund of at least two percent (2%).
(b) 
Franchise taxes.
The council shall have the power annually to levy and collect a franchise tax and a gross receipts tax against any public service corporation, person, or entity holding a franchise for the use and occupancy of public streets, alleys, or grounds of the city, separately from the tangible property of such corporation, companies and corporate institutions, as the same now or may be assessed by the state laws, and shall have full power to enforce the collection of such taxes.
The council shall also have the power to regulate, control, and prohibit the use of streets, alleys, sidewalks, and public grounds of the city by the said franchise holders, and may fix and impose a reasonable annual tax on each pole or other obstruction maintained by the said franchise holders in any street, sidewalk, alley or any other public grounds of the city, and may also fix, regulate, and graduate the taxes so imposed by levying and imposing a greater or less tax, depending upon the location of said poles or other obstruction.
(c) 
Reserved.
(d) 
Hotel/motel taxes.
The city council shall have the right to impose a tax on the rental of hotel and motel rooms, as provided by the laws of the State of Texas.
(e) 
Sales taxes.
The city council shall have the right to impose various taxes on taxable sales and uses, as provided by the laws of the State of Texas.
(Ordinance 4745, sec. 2, adopted 3/8/99; Resolution 6300 adopted 11/20/17)
All property, real, personal, or mixed, having a location within the corporate limits of the city on January first of each year, not expressly exempted by law, shall be subject to taxation by the city for that year.
The tax assessor/collector of the Grayson County Appraisal District, or his or her designee, shall assess and collect property taxes according to the Texas Property Tax Code and the ordinances of the City of Sherman.
The tax assessor/collector of the Grayson County Appraisal District, or his or her designee, shall have the power to make reassessments, at the same value and tax rates as such property should have been assessed and taxed and indicating the year or years for which it is assessed.
(Ordinance 3565, sec. 2, adopted 2/8/82; Ordinance 4745, sec. 2, adopted 3/8/99)
(a) 
The appraisal review board shall act as a board of equalization as provided by the Texas Property Tax Code.
(b) 
The city manager or his or her designee shall have the power to challenge appraisals as provided by the Texas Property Tax Code.
(c) 
A property owner is entitled to protest before the appraisal review board as provided by the property tax code.
(Ordinance 3565, sec. 2, adopted 2/8/82; Ordinance 4745, sec. 2, adopted 3/8/99)
All ad valorem taxes due the City of Sherman shall be payable at a location designated by the City, and shall become due on October first of the year of the levy, and shall be paid not later than the following January thirty-first, after which date they shall be deemed delinquent. All sales taxes shall be payable at the times, methods and locations that are prescribed in the general laws of the State. All hotel/motel taxes are payable at the Finance Department of the City. All taxes, other than ad valorem taxes, which are not paid on or before the date they are due shall be deemed delinquent. All delinquent taxes shall be subject to such penalty and interest as authorized by law.
(Ordinance 3048, sec. 2(25), adopted 4/5/75; Ordinance 3565, sec. 2, adopted 2/8/82; Ordinance 4745, sec. 2, adopted 3/8/99; Ordinance 5921 adopted 12/7/15)
(a) 
Tax liens.
A lien is hereby created on all property, personal and real, in favor of the City of Sherman, for all taxes, ad valorem, or otherwise. Said lien shall exist from January first in each year until the taxes are paid. Such lien shall be prior to all other claims, and no gift, sale, assignment, or transfer of any kind, or judicial writ of any kind, can defeat such lien. The tax assessor/collector of the Grayson County Appraisal District, or his or her designee, can pursue such property, and whenever found out may seize and sell enough thereof to satisfy such taxes. The city shall grant, in appropriate cases, a partial release of lien when the entire tax delinquency balance is not being paid in full, and shall not grant a full release until all such delinquency due the city is paid in full or becomes uncollectible by operation of law.
All persons or corporations owning or holding personal property or real estate in the City of Sherman on the first day of January of each year shall be liable for all municipal taxes levied thereon for such year.
The personal property of all persons owing such taxes to the City of Sherman is hereby made liable for all of said taxes, whether the same be due upon personal or real property, or upon both.
(b) 
Church and school property not exempt from special assessments. No property of any kind, church, school, or otherwise, in the City of Sherman shall be exempt from any of the special taxes and assessments authorized by this charter for local improvements unless the exemption is required by state law.
(Ordinance 4745, sec. 2, adopted 3/8/99; Ordinance 6086 adopted 12/4/17)
The owner of a partial interest in real property may furnish to the tax assessor/collector of the Grayson County Appraisal District, or his or her designee, at any time before May first of each year a written description of any parcel of land in which he or she has an interest less than the whole, showing the amount of his or her interest therein, and the tax assessor/collector of the Grayson County Appraisal District, or his or her designee, may thereupon assess such interest as a separate parcel.
(Ordinance 4745, sec. 2, adopted 3/8/99)
The city shall be entitled to counterclaim and offset against any debt, claim, demand, or account owed by the city to any person, firm, or corporation who is in arrears to the city for taxes, in the amount of taxes so in arrears, including all penalties and interest, and no assignment or transfer of such debt, claim, demand, or account after the said taxes are due shall affect the right of the city to so offset against the same.
Except as otherwise provided by law or this charter, the council shall have the power to provide by ordinance for the assessment and collection of all taxes, and to make such rules, regulations, and mode of procedure to enforce to collection by the payment to the tax assessor/collector of the Grayson County Appraisal District, or his or her designee, as it may deem expedient, and shall provide such penalties for the failure to pay such taxes as it may deem expedient.
(Ordinance 3565, sec. 2, adopted 2/8/82; Ordinance 4745, sec. 2, adopted 3/8/99)