According to a news release from the district, this is the lowest property tax rate in 33 years, and it represents a decrease of $0.0444 from the 2021-22 tax rate. CFISD officials said the newly adopted tax rate will produce savings of around $307 on a home valued at $350,000 annually.
The tax rate consists of a $0.8948 maintenance and operations tax rate, which funds daily operations within the district and has decreased for the fourth consecutive year as well as the $0.40 interest and sinking tax rate, which addresses debt service.
CFISD Chief Financial Officer Karen Smith said 57% of district revenue comes from local property taxes, 41% through state funding and 2% through the federal government. Should property tax rates increase, state aid for the district would decrease, she said. It was also noted while homeowners may see property tax bills increase annually, it is not due to CFISD’s tax rate but the increases in values that are set by the Harris County Appraisal District.
“So what I have seen over the last few years, since 2017 or so, the district keeps lowering the tax rate that the district assesses,” Trustee Julie Hinaman said. “But because property values keep going up, taxpayers may see their bills going up, but the school district is doing the best we can to provide property tax relief by lowering our tax rate.”
CFISD will also continue to offer an optional local homestead exemption of 20% of the home's appraised value. This can be paired with a $40,000 state exemption to allow a CFISD taxpayer with a home valued at $350,000 to pay tax based on $240,000 of the value.
Board President Tom Jackson mentioned the board did not take action on an opportunity to remove part of the district’s homestead exemption because of rapid increases in property values and tax compression. According to Jackson, the taxpayers would not be impacted by this move, but the school district will receive more funding.
“As I mentioned in the meeting, this anomaly may not present itself next year,” Jackson said. “But if it does, starting about March, we need to have conversations and discussions as to whether or not it makes sense to try and take advantage of the situation.”
For more information about CFISD’s tax rate, visit the district website.