TAX INFORMATION

Public school taxes involve two figures, which divide the school district budget into two “buckets.” The first bucket is the Maintenance and Operations budget (M&O), which funds daily costs and recurring or consumable expenditures such as teacher and staff salaries, supplies, food, gas and utilities. Approximately 85 percent of the district’s M&O budget goes to teacher and staff salaries. The second bucket is the Interest and Sinking budget (I&S), also known as Debt Service, and that is used to repay debt for longer-term 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. I&S funds cannot by law be used to pay M&O expenses, which means that voter-approved bonds cannot be used to increase teacher salaries or pay rising costs for utilities and services.

Tax Rate Components

Maintenance and Operations

supplies | food | utilities | salaries | furniture

M&O

Interest and Sinking

debt repayment for capital improvements

I&S

NISD Tax Rate

Estimated Tax Impact

Impact on Senior Taxes

Currently, Northwest ISD’s I&S tax rate is $0.4125 and the M&O tax rate is $1.04 for a total tax rate of $1.4525 per $100 of certified property value. The chart below shows the district’s tax rate over the past 5 years.

 

*Assumes $25,000 homestead exemption

 

Northwest ISD in Comparison

The estimated maximum tax impact of this bond is $0.0375 for a total tax rate of $1.49. For the average home value of $250,000,
this represents an increase of approximately $7.03 per month. The below chart illustrates the estimated monthly tax increase
to property owners in Northwest ISD.

*Assumes $25,000 homestead exemption

 

Northwest ISD property taxes for citizens age 65 or older would not be affected by the bond election as long as a homestead and
over 65 exemption application have been filed 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 significant improvements are made to the home.

 

For more information on the over 65 exemption, visit your county’s Tax Office website.

Early Voting: April 24 – May 2, 2017   Election Day: May 6, 2017  Register to vote by April 6, 2017.