Houston ISD board managers adopted a significantly lower tax rate compared to last year’s rate following the passage of Senate Bill 2 in July.

The overview

During their Sept. 14 meeting, managers adopted a tax rate of $0.8683 per $100 valuation for the upcoming fiscal year, down nearly 17 cents from last year’s rate of $1.0372 per $100 valuation.

According to district documents, the tax rate includes $0.7016 for maintenance and operations as well as $0.1667 for debt service. The rate is based on the projected total taxable value of roughly $236.8 billion, according to estimates provided by the Harris Central Appraisal District.

Why it matters

Following the passage of SB 2, homeowners will receive a $100,000 tax exemption on their primary home, up from the previous $40,000 exemption. Additionally, HISD offers a local optional homestead exemption equal to 20% of the home’s value.

According to HCAD data, the average value of a home within the district was roughly $411,000, with an average taxable value of about $267,000. HCAD data shows the average annual tax bill for homeowners in the district will come out to $2,320.

Texans will need to approve a constitutional amendment included in SB2 during the Nov. 7 election for the tax cuts to show up on this year’s tax bill.