The same total tax rate as was approved for fiscal year 2024-25—$1.0679 per $100 of valuation, made up of a $0.6669 maintenance and operations rate as well as a $0.4010 debt service rate—will be considered for 2025-26 by the district's board of trustees at a future meeting.
What you need to know
The district's tax rate is made up of two pieces, the M&O and I&S rates. The M&O partially funds district operations with local property tax revenue, while the I&S rate services the district's debt payments, such as bonds.
White said in an Aug. 19 meeting that the rate will remain the same due to property values, which have not grown enough in the past year to exceed the threshold for tax rate compression by the Texas Education Agency.
This is due in large part to an anticipated increase in the homestead exemption, as well as a "cooling off" of the local housing market.
A measure to increase the homestead exemption from $100,000 to $140,000 will go to voters in November.
What they're saying
"I assume if voters choose not to have their taxes cut, we'll come back and the state would figure out plan B," White said. "I don't think that's going to happen."
What's next?
Trustees will hold a public hearing and vote on adoption of the tax rate for the 2025-26 financial year in September.
