FISD board of trustees have lowered the district’s tax rate for the 2023-24 fiscal year in a unanimous vote. The new tax rate is $1.0275 per $100 valuation, which is $0.18 lower than this fiscal year's rate, according to the board's resolution. The FY 2022-23 tax rate was $1.2129 per $100 valuation.
Chief Finance and Strategy Officer Kimberly Smith presented information about the tax rate to trustees Aug. 14.
The overview
The new tax rate is broken down into two pieces.
- The first piece, maintenance and operations, or M&O, covers the district’s operational expenses such as payroll. The M&O rate is $0.7575 per $100 valuation.
- The second piece is interest and sinking, or I&S, which pays for the district’s principal and interest on its debts, the board’s resolution states. The I&S rate is $0.27 per $100 valuation.
The district received its certified property values July 25 from its appraisal districts.
When accounting for homestead exemptions, the district’s certified total is about $62.77 billion, according to Smith’s presentation. Smith estimates the value will decrease by about $3 billion if a homestead exemption increase is signed into law.
In Smith’s presentation, she said the average taxable value for residents has increased 12.8%—or $61,194—from 2022.
With the district’s new rate and homestead exemptions, Smith said homeowners with that average value could see their tax bills reduced by $870.
“The Legislature has passed property tax relief again to bring the average taxpayer back down,” Smith said. “That appears to be [the Legislature’s] goal to keep those property tax bills at a steady dollar value.”
