$15 Billion in Local School Taxes
Average 2001 School Tax Rate Is About $1.485 per $100 of ValueTexas independent school districts (ISDs) reported to the Comptroller’s Property Tax Division (PTD) a total of more than $15 billion in 2001 school property taxes. This $1.7 billion increase was about 13 percent above the 2000 total school taxes.
The 2001 average statewide tax rate increased about 1 cent above the 2000 average rate. About 24 percent of Texas school districts reduced their local adopted tax rates, 30 percent kept the same rate and the remaining 46 percent of the districts increased their rates.
The school property value reports are for 1,034 Texas school districts. The reports do not include local school taxes by special county equalization districts and South Texas ISD. Tax rates reported are per $100 of property value.
Largest districts
The state’s 10 largest urban districts accounted for more than 29 percent of the total 2001 school taxes. While Houston ISD’s 2001 rate increased about 4 percent above its 2000 tax rate, its total tax levy rose more than 15 percent to almost $994 million. Dallas ISD gained almost 10 percent in total taxes, totaling $879 million in 2001, while keeping the same tax rate as in 2000. Dallas ISD’s rate in both years was $1.5475 per $100 of value.
With a 2001 tax rate increase of about 5 percent, Plano ISD in Collin County saw the largest increase (of the largest 10 districts) in total taxes at 16.5 percent, reaching about $417 million.
The other seven largest districts—Austin, Cypress-Fairbanks, Richardson, Arlington, North East (in Bexar County), Fort Worth, and Northside (in Bexar County) ISDs—all increased their tax levies, ranging from just under 4 percent to 16.5 percent.
The 50 largest ISDs—or 5 percent of all districts—accounted for almost 60 percent of the total 2001 school taxes.
The largest percentage increase in taxes for these 50 ISDs went to Frisco ISD in Collin County. Frisco ISD raised its tax rate about 1 percent, but generated about 41 percent more in taxes. Round Rock ISD in Williamson County was second with a tax rate increase of less than 2 percent, but it still gained more than 32 percent in total taxes.
Average tax rate
The 2001 average statewide tax rate was $1.4857 per $100 of value, a 1-cent increase above 2000’s average rate. The 2000 average statewide tax rate increased about 2 cents above 1999 to $1.475 per $100 of value. This average rate calculation uses the reported adopted tax rates divided by the number of ISDs reporting. This average does not consider any overall tax value or levy changes resulting in tax rate increases or decreases.
Pages 8 to 23 list the 2001 tax rates and taxes of 1,034 ISDs reported to the Comptroller. The list includes the percentage change in rates and levies for each district compared to tax year 2000.
Range of rates
The adopted 2001 ISD tax rates ranged from a low of $0.86 per $100 of value in Seminole ISD in Gaines County to a high of $2.00 in Spurger ISD in Tyler County. Seminole ISD in Gaines County also had the lowest tax rate in 2000. Driscoll ISD in Nueces County had the highest rate in 2000.
Eleven districts had adopted tax rates of less than $1.00, compared to eight districts for tax year 2000. Of these 11 districts, only one of the districts’ total rate included a rate to pay for debt.
About 57 percent of the districts—or 592—had combined rates between $1.00 and $1.50 per $100 of value. The remaining 431 districts’ rates ranged from above $1.50 to the high of $2.00.
Ups and downs
Taxpayers in 252 districts—about 24 percent—reduced their school tax rates. Some 306 districts—24 percent—kept the same rate as in 2000. Another 476 districts—or 46 percent—saw their tax rates rise from less than 1 percent to more than 33 percent in 2001.
Austwell-Tivoli ISD in Refugio County had the largest tax rate decrease at almost 39 percent. Even though the school district’s tax rate decreased more than one-third, total taxes decreased about 1 percent.
Other large decreases in tax rates included: Webb Consolidated ISD in Webb County (33 percent), Leggett ISD in Polk County (32 percent), Texhoma ISD in Sherman County (32 percent) and Allison ISD in Wheeler County (31 percent). While these ISDs saw their tax rates drop, most of them saw their total taxes either increase or decrease less than 7 percent.
With an increase of more than 33 percent in its tax rate, Spurger ISD in Tyler County witnessed the largest rate increase from $1.50 to $2.00 per $100 of value. The ISD’s increased rate raised 28 percent more in school taxes—from $575,221 to about $736,703.
Other districts with substantial rate hikes included: Cuero ISD in DeWitt County (25 percent), Grand Saline ISD in Van Zandt County (21 percent), Marfa ISD in Presidio County (19 percent) and Yantis ISD in Wood County (19 percent).
Operating and debt rates
Property tax rates may consist of two parts: a maintenance and operations (M&O) rate and an interest and sinking fund (I&S) rate. The M&O rate covers general operating costs. The I&S rate, which is usually called the “debt” rate, is used to repay a district’s debt.
The state’s 2001 average M&O rate for ISDs was $1.3913, while ISDs’ debt rate averaged $0.0945.
State law places a tax rate cap of $1.50 on M&O rates. School boards in 252 ISDs—about 24 percent—adopted an M&O rate at the rate cap, compared to 186 ISDs (about 18 percent) in 2000. Another 33 percent—or 340 districts—have M&O rates between $1.40 and $1.50, compared to 2000 when 366 districts (35 percent) had M&O rates in that range.
Five school districts in Harris County adopted above the $1.50. Spring Branch ISD adopted an M&O rate of $1.625, but the district has authority by voter election for a higher M&O rate cap. The other four districts were Galena Park, North Forest, Pasadena and Katy ISDs. (Katy ISD is located in both Harris and Waller Counties.)
About 33 percent—or 337 districts—do not have a 2001 debt rate for repaying debt obligations. Of those 697 ISDs with debt rates, eight districts have a debt rate of more than $0.40. Carroll ISD in Tarrant County set the highest debt rate at $0.515. With a M&O rate of $1.42, the district’s total rate was $1.935.
What was the range of 2001 ISD rates in Texas? * Rounding exceeds 100 percent.
Total ISD Rate Number of ISDs % of All ISDs Less than $1.00 11 1.1% $1.00 to $1.20 39 3.8% More than $1.20 to $1.40 205 19.8% More than $1.40 to $1.50 348 33.7% More than $1.50 to $1.60 220 21.3% More than $1.60 211 20.4% Total 1,034* 100.1%
Rates are based on $100 of property value.
Source: Comptroller's Property Tax Division.
2001 Rate Changes in Texas School Districts * Rounding exceeds 100 percent.
Percent Change in
Rate from 2000Number of ISDs % of All ISDs Decreases Less than 1 percent 55 5.3% 1 to 10 percent 159 15.4% More than 10 percent 38 3.7% Subtotal 252 24.4% No Change 306 30.0% Increases Less than 1 percent 44 4.3% 1 to 10 percent 384 37.1% More than 10 percent 48 4.6% Subtotal 476 46.1% Total 1,034 100.4%*
Source: Comptroller's Property Tax Division.
