Property Taxes, Part II

by Coy Holcombe.  

First, congratulations to the varsity volleyball team on their victory last night against Canton. The Lady Bulldogs are now 2-0 in district and will face Van this Friday in Eustace.

Last year at this time, we reviewed how your property tax bills are calculated. I think that it would be appropriate to again examine the calculations involved in this process. To begin with, taxpayers in EISD are offered two separate exemptions for homesteads: the state exemption of $15,000 and the optional local exemption of 20%. Many school districts have eliminated their optional homestead exemption. EISD is one of the few districts in our area that continues to offer this exemption. The optional homestead exemption allows 20% of the appraised value of the property to be deducted prior to the state mandated $15,000 deduction. To see how this works, let’s look at an example.

Suppose we were paying taxes on our home that has a value of $100,000. Assuming that this property is declared a homestead, we would be entitled to two exemptions: the optional 20% homestead exemption and the $15,000 homestead exemption from the state. The exemptions would be calculated as follows:
20% Optional Exemption is taken first. $100,000 x 20% = $20,000. So the optional homestead exemption would deduct $20,000 from the taxable value of this home. $100,000 – $20,000 = $80,000.
Next, the state homestead exemption of $15,000 is deducted: $80,000 – $15,000 = $65,000. So the taxable value for school district taxes on this $100,000 home is $65,000.
To calculate the school property taxes owed on this $100,000 home, we would now do the following:
Take the taxable value after all exemptions: $65,000. Divide this amount by 100. This would give us 650. Multiply this figure by the district tax rate of $1.258: 650 x $1.258 = $817.70. So, a taxpayer in our district with a home valued at $100,000 would pay about $820.00 in school property taxes. Again, this example is assuming that the homeowner has declared this property to be their homestead. There are also other exemptions that may apply to certain individuals.
If EISD did not offer the optional 20% homestead exemption, the taxes on the above property would be approximately $1070.00 ($100,000 – $15,000 = $85,000 ÷100 x 1.258). If you have any questions concerning your property taxes, please contact Debbie Myers (425 – 5232 or dmyers@eustaceisd.net). Please do not hesitate to email me at cholcombe@eustaceisd.net with your questions or comments.

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