Correction: The original version of this post stated the maintenance and operations rate was $1.44 in 2018-19 and has since been updated to reflect the M&O rate was $1.04.
Cy-Fair ISD’s board of trustees unanimously approved a tax rate of $1.37 per $100 valuation for fiscal year 2019-20—a $0.07 decrease over 2018-19—at its Sept. 9 meeting.
Chief Financial Officer Karen Smith said at the Sept. 5 board work session the owner of a home valued at $200,000 would save about $95 on their annual property tax bill.
The maintenance and operations rate, which funds the district’s day-to-day operations, is $0.97—down from $1.04. The interest and sinking or debt service rate remained unchanged at $0.40.
CFISD offers an optional homestead exemption of 20% of the appraised value plus $25,000, which Smith said results in a multimillion dollar revenue loss each year.
“Basically, the amount of revenue the district loses by granting these exemptions at $1.37 tax rate is just shy of $79 million,” she said.
The tax rate decrease is a result of House Bill 3, which passed in the 86th Texas Legislature earlier this year.
Through this bill, lawmakers invested $5.1 billion to help school districts across the state lower their tax rates by an average of $0.08 in 2020 and $0.13 in 2021. To make up for the decrease in local revenue, legislators are also increasing the state’s share of funding from 38% to an average of 45% for the biennium.
CFISD officials have projected about 54.3% of their revenue sources will be from local taxes and 43.5% will be from the state in 2019-20. The district adopted a $992.3 million budget in June.