Tax Rate Information

Public school taxes involve two figures, which divide the school district budget into two “buckets.”

 

The first bucket is the Maintenance and Operations (M&O) budget, also known as the General Fund. This is used to pay for the day-to-day operations of a district and includes items such as teacher salaries, classroom supplies, utilities, and transportation.

 

The Second is the Interest & Sinking (I&S) budget or Debt Service Fund. This is used to repay debt for capital improvements approved by voters through bond elections for items such as land, construction, renovation, technology, and buses. This fund is similar to a mortgage or home improvement loan.

 

 

Funds from a bond issue can be used for 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 for the M&O budget, which means voter-approved bonds cannot be used to increase salaries or to pay for the rising costs of utilities or services.

The proposed stadium cost of $39,978,837 will be at no tax rate increase to taxpayers.

 

On August 22, 2022 the Stephenville Independent School District Board of Trustees approved a tax rate of $1.1474 per $100 of valuation which consisted of $0.8646 for Maintenance and Operations (M&O) and $0.2828 for Interest and Sinking (I&S). The $0.2828 I&S tax rate adequately covers the cost of future proposed bond payments. 

Due to a few combined factors, including the early paying down of debt, low interest rates, and rising property values (determined by the appraisal district), Stephenville ISD projects no tax increase to fund the $39,978,837 bond proposal. 

 

However, a new state law now requires every school district to include the statement "THIS IS A PROPERTY TAX INCREASE" on the ballot, even when the school district is not expecting a rate increase. This is because the issuance of new bonds increases the term of the debt repayment at the current tax rate.

Over the past 4 years, Stephenville ISD's total tax rate has decrease by 19.55 cents per $100 of valuation.

Stephenville ISD's Total Tax Rate is the second lowest compared to our State UIL Competitors.

 

Residents who have an over-65 homestead exemption, and qualifying disabled veterans, have the security of knowing that their taxes were frozen at the time of their 65th birthday. Anyone who needs more information about the exemption should call the Erath County Appraisal District at 254-965-5434 or go to the appraisal district’s website at erath-cad.com.