Tax Rate Election - Prop A

Tax Rate Election (Proposition A) is an election that allows school districts to ask voters for permission to access additional local tax revenue, specifically through a portion of the tax rate called Golden Pennies.

Golden Pennies are a part of the Maintenance & Operations (M&O) tax rate that generate extra funding for school districts.
✔️ Stay local – These funds stay in Peaster ISD
✔️ No recapture – They are not subject to the state’s recapture system
✔️ Support students and staff – They help fund teachers, classrooms, and daily operations

If the Tax Rate passes, Peaster ISD would access three Golden Pennies, generating about $280,000 in local tax funding and nearly $600,000 in State matching funds. Altogether, this means approximately $880,000 in new operating funds for students and staff in 2025-2026, with increased funding continuing annually.

• In 2024–2025, the district paid off debt early, saving $860,000 in interest
   
• This allowed the I&S (debt service) tax rate to drop by over $0.03
   
• The Board passed a balanced budget for 2025–2026 and is now asking to add $0.03 on the operations side

No, for residents who are 65 or older, own their own home, and already receive an "Over 65 Homestead Exemption", there is a tax ceiling on the amount of school taxes they pay. For additional information, please click the following link - 65 and Older Letter

A proposed Constitutional Amendment would increase:

• Homestead Exemption by $40,000 for all property owners
   
• An additional $60,000 exemption for those 65+
   

This reduces the taxable value of your home and may lower your overall tax bill.

Key Election Dates

• Register to vote by: October 6, 2025
   
• Early voting: October 20–31, 2025
   
• Election Day: November 4, 2025

Peaster ISD will host town hall meetings in the upcoming weeks to explain the proposal and answer questions.

October 21, 2025 5:30-6:30 PM

October 28, 2025 TBD