Trustees approved a total tax rate of $1.1052 per $100 valuation at the Sept. 19 meeting. The adopted rate for the fiscal year 2023-24 budget was $1.1431 per $100 valuation, the lowest in over 30 years at the time.
The gist
The district’s tax rate once again decreased because of compression, which resulted in an over 4-cent reduction to the district’s maintenance and operations tax rate, according to board documents. Tax rate compression is the reduction of property tax rates based on value increases with the state funding any potential difference in a district’s property tax revenue.
David Pate, RISD assistant superintendent of finance and support services, said most of the district’s M&O rate is set by the state.
The M&O rate, which is used to cover general operating expenses, for 2024-25 is $0.7552 per $100 valuation and the interest and sinking rate, which is used to repay debt, is $0.35 per $100 of assessed value.
Diving deeper
The average home value within RISD’s boundaries decreased by less than 1% to $498,241 from $498,811. However, the average taxable value increased by 15.4% to $335,058 compared to $290,267, according to the district’s tax notice posting.
Despite a fourth consecutive rate decrease, property taxes due on a home with the average appraised value in the district are expected to increase by around $385 a month, or 11.6%, to $3,703 annually compared to $3,318 in taxes last year due to an increases in the taxable value.
What’s next?
The adopted tax rate for the 2024-25 budget will be used to calculate taxpayers bills due by Jan. 31, 2025.
Taxpayers should receive bills from the district in October reflecting the adopted rate.
