Property Values, Part III

by Coy Holcombe.  

As we continue to look at property taxes, today I want to discuss the increase in taxable values that the district has experienced over the last several years. The table below shows our certified taxable values in 2002 and our current taxable value for 2009..

 

2002

2009

Total

$271,652,498

$503,021,438

Frozen

$22,527,968

$64,267,756

Taxable

$249,124,530

$438,753,682
     

As you can see, since 2002, there has been a tremendous increase in our taxable values. The row labeled “Total” is the total taxable value of all properties. The row labeled “Frozen” represents the properties in the district that have had their taxes frozen (the owners of the property have reached age 65 or there is some other circumstance that has caused their value to become frozen). The row labeled “Taxable” is the difference between the “Total” and the “Frozen” values.

In terms of percent, since 2002, our taxable values have gone up about 76%. Needless to say, this has impacted the tax bills of the property owners in our district. With the passage of HB 1, the legislature attempted to offset the rise in property values by setting limits on the tax rate; however, even with these adjusted tax rates, we are reaching the limits of property tax relief with the continued rise of property values.

Although it would seem that the district would benefit greatly from the increase in property values (from increased tax revenues), that increase is somewhat offset by how the state calculates its share of our funding. In the state funding formulas, there is an item called "Local Share". This amount is deducted from the state’s share of funding and is directly related to the amount of property value in a district. Basically, this is calculated by multiplying the preceding year’s certified values from the comptroller by $.0086. So, as you can imagine, as our property value goes up, our Local Share also increases. As our Local Share goes up, our state aid goes down. (Note: The calculations can get somewhat more involved than those stated here; however, this is the basic way that our state funding calculations are made).

The relationship between local property taxes and state aid is complicated. EISD strives to maintain the maximum state funding while keeping our property taxes to a minimum. If you have any questions concerning our property taxes or state funding, please email me at cholcombe@eustaceisd.net.

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