2003 School Tax BurdenWho Paid and How Much?
Comptroller's Report Truth-in-Taxation 2004 Seminars Appraisal Standards Review Texas Property Tax Code 2004
In 2003, Texas school taxes increased 5 percent to reach $17.2 billion, as reported to the Comptroller’s Property Tax Division (PTD) by 1,031 independent school districts (ISDs). Who paid the greatest portion of these school taxes and what was the percentage of tax burden? Based on values, exemptions and tax levies reported by school districts, the PTD estimates the percentage of tax burden for the major categories of properties. These estimates do not reflect tax collections.
Residential property, including single-family homes, multi-family units and residential inventory, continues to pick up a greater share of the school tax burden. In 2003,Texas residential properties represented the largest category of property at almost 51 percent of the total amount in school taxes, climbing more than 2 percent from 2002 taxes at about 48 percent.
Businesses paid 42 percent of local 2003 school taxes, down from about 44 percent of the 2002 school taxes.
In 2001, the two groups paid about the same percentage at 46 percent.
All residential properties saw the school tax share increase just over $810 million to total $8.7 billion in local school taxes. Owners of single-family residences paid almost 45 percent of local school taxes and saw their 2003 school property taxes grow by $771 million. In comparison, single-family residences paid about 42 percent of local 2002 school taxes. The typical homeowner has seen the average home's taxable value (allowing only for the standard $15,000 school homestead exemption) rise from $76,326 in 2002 to $81,590 in 2003, almost a 7-percent increase.
Texas businesses paid about $7.25 billion in 2003 local school taxes, almost $8 million less than in 2002. Of all types of business properties, only one category experienced a tax increase—commercial real property at $108 million. All other business categories, including commercial personal, industrial real, industrial personal, oil and gas properties, utilities and special inventory, paid less in 2003 taxes than in 2002.
Vacant lots, rural acreage and farm and ranch improvements generated just under 7 percent of local school taxes with about $1.2 billion, a $70-million increase from 2002.
The table below shows Texas properties grouped into four main property types: residential, business, acreage/lots/farm & ranch improvements and other personal property. The fourth type—other personal including privately owned vehicles in school districts where they are taxed—represented about one-half of 1 percent of total school taxes at $84 million.
The 2002 tax levy includes adjustments reported to the Comptroller’s PTD since initial school reports received in fall 2002.
School Property Tax Burden - 2002 to 2003 (in billions)
Property Category 2002 School Taxes * % of Total 2003 School Taxes % of Total $ Change 2002 to 2003 Residential Property Single-Family Residences $6.96 42.46 $7.73 44.82 $0.77 Multi-Family Residences 0.88 5.38 0.92 5.34 0.04 Residential Inventory 0.07 0.41 0.07 0.39 0.00 Subtotal, Residential $7.91 48.25 $8.72 50.56 $0.81 Acreage/Lots Vacant Lots $0.43 2.60 $0.46 2.66 $0.03 Acreage 0.39 2.39 0.39 2.29 0.01 Farm & Ranch Improvements 0.30 1.83 0.33 1.92 0.03 Subtotal, Acreage/Lots $1.12 6.82 $1.19 6.87 $0.07 Business Properties Commercial Real Estate $2.77 16.90 $2.88 16.69 $0.11 Commercial Personal 1.32 8.04 1.30 7.56 (0.02) Industrial Real Estate 1.06 6.49 1.05 6.08 ($.01) Industrial Personal 0.79 4.83 0.76 4.41 ($.03) Oil, Gas & Minerals 0.61 3.74 0.60 3.50 ($.01) Utilities 0.65 4.00 0.62 3.63 ($.03) Special Inventory 0.05 0.34 0.04 0.22 ($.01) Subtotal, Business $7.26 44.34 $7.25 42.08 ($0.01) Other Personal Property Vehicles ** $0.00 0.02 $0.00 0.02 $.00 Other Personal 0.09 0.58 0.08 0.47 ($.01) Subtotal, Other Personal $0.09 0.60 $0.08 0.49 ($.01) Total $16.38 100.00 $17.24 100.00 $0.86
Note: Numbers may not add due to rounding.
Allocation of tax estimates to property categories based on values, exemptions and tax levies (not collections) reported by school districts.
* 2002 tax levy includes adjustments reported by independent school districts since fall 2002.
** Vehicles represent less than 1/10th.
Source: Carole Keeton Strayhorn, Texas Comptroller of Public Accounts, Property Tax Division.
Statement
May/June 2004
May/June 2004