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Homeowners in Lake Travis ISD may still see higher tax bills despite the board of trustees adopting a lower rate at an Aug. 19 meeting.
The overview
The LTISD board of trustees adopted a rate of $1.0329 per $100 of valuation, a slight decrease from the previous rate of $1.0397.
The total rate includes a maintenance and operations rate of $0.7054 per $100 of valuation and an interest and sinking rate of $0.3275.
Over the past seven years, the M&O rate has declined by more than 30 cents.
Maintenance and operations tax revenue funds daily operations, such as teacher salaries, and is subject to recapture. Interest and sinking taxes pay for bond debt and are not subject to recapture. LTISD has not adjusted the I&S rate since 2020.
The details
The new tax rate, though lower than fiscal year 2025-26, will generate more revenue for the district. According to LTISD documents, the tax rate that would generate the same amount of revenue as the previous fiscal year is $1.0113. This is partially due to increased property values in the area.
“Property in Lake Travis has experienced a steady value growth over the past few years,” Assistant Superintendent for Business Services Pam Sanchez said. “Taxable values for the [2026-27] tax year are projected to increase approximately 3% from the prior year.”
The Travis Central Appraisal District sets the certified property values for LTISD school tax purposes.
A closer look
The TCAD provides certified home values to LTISD in July, and the district then provides them to the Texas Education Agency. Using the certified values, the TEA sets the maximum compressed rate, which is the lowest base tax rate the district can set, and is tied to changes in property value.
In case you missed it
While the district will receive more local tax revenue in the upcoming fiscal year due to increased certified property values, the estimated recapture payment outlined in the 2026-27 budget is also higher.
Recapture is the repayment of some local tax revenue back to the state if a school district generates more property tax revenue than the state's funding formula determines it is entitled to.
Brooke Sjoberg contributed to this article.
