Property owners in Plano ISD will pay higher tax bills next year, but district officials expect just a fraction of that new revenue to go toward local schools and administration.
The Plano ISD board of trustees on Tuesday adopted a 2017-18 property tax rate of $1.439 per $100 valuation, unchanged from the previous year. As property values continue to climb across North Texas, the district expects to collect 8 percent more this year in property taxes—but the bulk of that new revenue will go directly to the state in the form of mandatory recapture payments, according to Plano ISD Chief Financial Officer Steve Fortenberry.
Property tax revenue available for district operations will increase by 1 percent, an amount lower than general inflation rates, Fortenberry said.
Meanwhile, the district's recapture payments are expected to rise by nearly 50 percent. The district expects to pay 1 in 4 of the property tax dollars it collects for operations this year to the state, compared to just over 1 in 5 last year, district estimates show. These estimates do not include property taxes raised for debt service, or other sources of district revenue.
Plano ISD's district officials and trustees have been critical of the state's recapture policy, arguing the payments hamper the district's ability to lower tax rates. Trustees have also said the policy fails to ensure the recaptured money results in more funding for poorer school districts, as lawmakers said they intended.
Here's what the Plano ISD property tax breakdown looks like for both the district and the state: