Tax Rate Information
No Tax Rate Increase
There will be no tax rate increase as a result of the May 2018 bond election. The Peaster ISD total tax rate, which has been $1.44 for a couple of years, will remain at $1.44.
The district is able to maintain its total tax rate at $1.44 because the scope of the proposed bond projects has been reduced since the last election, property values are increasing and the district is refinancing 2010 bonds to take advantage of lower interest rates.
About Public School Tax Rates
Public school taxes involve two figures, which divide the school district budget into "buckets."
The first bucket is the Maintenance & Operations (M&O) budget, which funds daily costs and recurring expenditures such as teacher and staff salaries, supplies, food and utilites.
The second budget is the Interest & Sinking (I&S) budget, also known as Debt Service, which is used to repay debt for capital improvements approved by voters through bond elections.
Proceeds from a bond issue can be used for the construction and renovation of facilities, the acquisition of land, and the purchase of capital items such as equipment, technology and transportation. By law, I&S funds cannot be used to pay M&O expenses which means that I&S funds cannot be used to pay teachers or pay for rising costs for utilities and services. The May 2018 bond issue will fund facility renovations, security and equipment upgrades, and transportation improvements.
Homeowners Over 65
Peaster ISD property taxes for citizens aged 65 or older cannot be affected by school district bond elections as long as a homestead and over 65 exemption are on file with the local appraisal district.
According to state law, the dollar amount of school taxes imposed on the residence homestead of a person 65 years of age or older cannot be increased above the amount paid in the first year after the person turned 65 regardless of changes in tax rate or property value unless improvements are made to the home or property.
The Peaster ISD tax rate will remain the same for all homeowners, regardless of age, following the May 2018 bond election.