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Hutto ISD property owners will likely see a lower tax bill from the school district for the coming year.
What you need to know
Residents will pay about $240 less in district property taxes year over year on a home with the median taxable value in the area.
Trustees ratified a tax rate of $1.1874 per $100 of valuation for the 2026-27 financial year on Aug. 27.
The overall rate is made up of a $0.7374 maintenance and operations rate, which funds the district’s operations, and a $0.45 debt service rate to pay the district’s debts.
The approved rate is $0.0178 lower than the previous financial year’s rate of $1.2052, Chief Financial Officer Rosanna Guerrero said.
How it works
Due to tax rate compression, a mechanism in which the Texas Education Agency uses a formula to set a school district's base tax rate in relation to the area's property values, the district's base rate was lowered further than expected.
Property values within the district rose 5.5%, Guerrero said. However, because Texas voters passed an increase to the homestead exemption in November, taxable values are still lower year over year.
The compression resulted in about $2.2 million less in property tax revenue for the district than initially estimated, Guerrero said. Hutto ISD used the higher estimates to build their approved budget back in June.
What’s next?
The board also approved setting the maximum tax rate for the East Williamson County Higher Education Center at $0.045865 per $100 of valuation.
The tax levied on behalf of the center is a branch maintenance tax paid to Temple College, which owns the facility. HISD levies the tax on behalf of the college as its boundaries are outside of the college’s official taxing district. This arrangement allows HISD students to access Temple College as in-district students.
A vote to finalize this tax rate will be held in September.
