Homeowners in Hays CISD can expect to see lower school property tax bills in fiscal year 2026-27, partially due to decreased taxable home values.
The big picture
The board of trustees adopted a tax rate of $1.14 per $100 of valuation at a Sept. 28 meeting. This is slightly more than a 1-cent decrease from the previous rate of $1.1546. The total tax rate includes a maintenance and operations rate of $0.6523 and an interest and sinking rate of $0.4877.
M&O revenue funds daily operations such as teacher salaries and campus maintenance and is subject to state recapture. I&S revenue is used to pay for bond debt and is not subject to recapture.
School districts that generate excess local revenue make recapture payments to the state. Funds are redistributed to assist with funding all school districts, according to the Texas Education Agency website. HCISD is not typically required to make recapture payments to the state.
In case you missed it
Using certified home values submitted by appraisal districts, the TEA sets the maximum compressed rate, which is the lowest tax rate a district can set, and is tied to changes in property value.
In June, the board of trustees proposed adopting the same tax rate as FY 2025-26, $1.1546 per $100 of valuation. However, after receiving appraised property values, the TEA set the maximum compressed rate at $1.14, allowing the district to adopt a lower tax rate.
The district originally expected the tax bill for the median homeowner to decrease by about $86. With the adopted rate, homeowners could save approximately $210. Owners of a property with the median taxable value of $173,290 can expect to pay $1,976 this year, according to the taxpayer impact statement.
"We're lowering our tax rate again for our community ... we are below our no-new-revenue tax rate ... I'm pretty proud of everything we've done to circumvent the tough situation we've had with funding in public education," board president Byron Severance said.
