LISD officials discussed the district’s proposed tax rate for fiscal year 2024-25 at an Aug. 8 board of trustees meeting.
The big picture
The district is projected to adopt a tax rate of $1.0869 per $100 valuation for FY 2024-25.
The proposed tax rate—a $0.0218 decrease from FY 2023-24—would be the lowest tax rate adopted by the district in recent years, according to district information. Since 2019, the state has compressed school districts’ tax rates as property values grow, Chief Financial Officer Pete Pape said.
The Texas Legislature passed a law in 2023 cutting school district maintenance and operations taxes by nearly 24%, according to previous reporting by Community Impact. Additionally, state lawmakers raised the homestead exemption for all homeowners from $40,000 to $100,000.
For FY 2024-25, the district adopted a $460.36 million general operating budget with a nearly $13.1 million shortfall as it has faced cuts to state and federal funding.
What residents should know
Despite the lower tax rate, some homeowners may pay more in property taxes.
A homeowner with a market home value of $635,128 and average taxable value of $455,926 can expect to pay $4,955 in school property taxes, which is a $211 increase from last fiscal year, according to district information.
This comes as the average taxable value of homes in the district rose from $426,517 to $455,926 from April to July, Pape said.
What’s next
The board of trustees will adopt the district's FY 2024-25 tax rate at its next meeting Aug. 22.
