Property Taxes, Part 4

by Coy Holcombe.  

Today, I wanted to review our tax rate history from the past several years. Below you will find a table that lists the district’s tax rates from 2000 to our current tax rate:

Tax Rate Comparisons 

 

M & O

I & S

Total

2000

 $  1.303

 $   0.062

 $  1.365

2001

 $    1.32

 $     0.07

 $    1.39

2002

 $    1.32

 $     0.07

 $    1.39

2003

 $    1.38

 $     0.01

 $    1.39

2004

 $    1.41

 $     0.06

 $    1.47

2005

 $    1.45

 $     0.22

 $    1.67

2006

$1.3257

$0.1918

$1.5175

2007

$1.04

$0.22804

$1.26804

2008

$1.04

$0.2180

$1.2580

A couple of notes about some of the tax rates listed above: in 2003, our I & S rate dropped to $.01. In order to maximize our state funding, our M & O rate needed to be increased; however, the board did not want to increase our overall tax rate. Therefore, the board voted to use fund balance in our I & S account to help pay for our bonds. This act served both purposes: it helped increase our state aid and it kept the overall tax rate constant at $1.39.

In 2005, there was a substantial increase in the I & S rate. This was the year that we sold the $9 million in voter approved bonds to help build additional classrooms and provide renovations at all campuses. These bond funds were also used to build the new practice gym, weight room, and dressing rooms at the Middle School. These funds will also be used to pay for the new transportation facility and pay for moving the maintenance department from their current location to the old transportation facility.

In 2007, there was a dramatic decrease in our M & O tax rate. This was the year that the legislature passed HB 1. This bill sought to provide tax relief by lowering M & O rates and increasing the overall amount of aid that the state provided. Also in 2007, you see a slight increase in the I & S rate. This increase was due to the selling of the additional $4 million in bonds for the new competition gym.

The district’s tax rate is set in August of each year. There is a public hearing to discuss the tax rate and overall budget for the upcoming school year. For the 08-09 school year, the board voted to approve an M & O tax rate of $1.04 and an I & S tax rate of $0.218 for an overall tax rate of $1.2580. This new tax rate represents a decrease of a little over a penny from last year’s rate.

If you have any questions concerning our tax rate, please do not hesitate to contact me at cholcombe@eustaceisd.net.

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