Taxes & Financial Impact
In Texas, a school district's tax rate is constitutionally divided into two parts that fund different portions of a school district's budget. These rates are the Maintenance & Operations (M&O) Tax Rate, and the Interest & Sinking (I&S) Tax Rate.
The M&O Tax Rate funds the day-to-day maintenance and operations of the school district like teacher and staff salaries, utilities and classroom supplies. This is the larger of the two tax rates. For DSISD, the M&O Tax Rate for the 2024 tax year is $0.7552 per $100 of property value.
The I&S Tax Rate can only be used to pay off debt incurred by issuing voter-approved bonds. School districts are required to set the I&S Tax Rate at the level necessary to make the annual debt payments on all outstanding voter-approved bonds. DSISD does not receive assistance from the state of Texas to repay debt or build facilities. For DSISD, the I&S Tax Rate for the 2024 tax year is $0.3500 per $100 of property value. DSISD's I&S Tax Rate has remained the same since 2016.
Because of sufficient tax revenues being generated by the current property tax rate structure, there would be no anticipated tax rate increase associated with these bond proposals.
The I&S portion of your tax bill pays for school district bonds. Pass or fail, the I&S Tax Rate is expected to remain the same for 2025.
Did You Know?
As part of an active debt management strategy, Dripping Springs ISD looks for opportunities to refinance existing debt when it would be beneficial. Since April 2012, DSISD has successfully completed four refinancings and two defeasances of existing debt, producing total savings of more than $34 million for district taxpayers.
Ballot Language
A state law, adopted in 2019, requires every school district to include the statement "THIS IS A PROPERTY TAX INCREASE" on the ballot, regardless of the actual impact on the district's tax rate. This is because, with a bond, districts take on more debt. Paying off bonds are similar to paying off a mortgage.
Are You 65 Years & Older?
By law, homeowners 65 years and older will NOT see an increase in their school district tax bill, even if their property values increase (excluding property improvements) as long as an approved Homestead 65 and Over Exemption application is filed with the Hays or Travis Central Appraisal District. This exemption is effective Jan. 1 of the tax year in which the property owner becomes 65.
For questions on homestead exemptions, Hays County residents can call 512.268.2522 and Travis County residents can call 512.834.9138.