Aubrey ISD Tax Rate

 

Maintenance & Operations Rate
$0.9603*

Interest & Sinking Rate
$0.50*

Total Tax Rate
$1.4603*

The M&O tax rate funds day-to-day operations and expenses like staff salaries, utilities, supplies, repairs and fuel.

The I&S rate funds principal and interest payments on debt for new construction, renovations, land, and other capital improvements.

The homeowner's tax statement will show this total tax rate.

*per $100 of property valuation

 

No Planned Change to the Tax Rate

STATE LAW REQUIRES “PROPERTY TAX INCREASE” LANGUAGE ON BALLOT FOR SCHOOL BOND PROPOSITIONS.

In compliance with a new state law, bond ballot propositions must include the following statement: THIS IS A PROPERTY TAX INCREASE. As a result of this new requirement, voters in AISD will see this language when they vote. There is no planned change to the AISD tax rate as a result of the 2022 bond election. The AISD tax rate will be dependent on the district’s Taxable Assessed Value in future years.

HOW IS THE DISTRICT ABLE TO ISSUE NEW BONDS WITHOUT PLANNING TO RAISE THE RATE?

There are two main factors that allow AISD to issue new bonds without raising the Interest & Sinking (I&S) tax rate.

  1. The first is growth in the district’s Taxable Assessed Value (TAV). The amount of taxes levied by AISD are calculated by multiplying the tax rate set by the district by the taxable value of the property within the district. The taxable values are set by the county appraisal districts. The district’s TAV has increased rapidly in recent years as new commercial and residential development has grown. As the TAV grows, AISD is able to generate more tax revenue while keeping the same tax rate. Continued future growth in AISD’s Taxable Assessed Values will be necessary for Aubrey ISD to issue bonds.

  2. The second is the 50-cent test. School districts in Texas are held to a legal requirement known as the “50-cent test” for the issuance of bonds to construct new school facilities, renovate existing schools, etc. Before a school district sells bonds, the district must demonstrate to the Texas Attorney General that the district has developed a financing plan to pay the principal of and interest on the proposed bonds and all outstanding bonds, from a tax rate of 50 cents or lower.

THEN WHY IS THIS “PROPERTY TAX INCREASE” LANGUAGE REQUIRED?

State law now requires this language on all school bond referendums.

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 and utilities. Approximately 78 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.


Aubrey ISD Tax Rate History

Aubrey ISD’s I&S tax rate is $0.50, and the M&O tax rate is $0.96, for a total tax rate of $1.46 per $100 of certified property value.

This chart shows the district’s tax rate over the past 7 years.

The AISD tax rate is not planned to increase as a result of the 2022 bond election. Continued future growth in AISD’s Taxable Assessed Values will be necessary for Aubrey ISD to issue bonds.

Impact on Senior Citizens’ Property Taxes

Aubrey ISD property taxes for citizens age 65 or older would not be affected by this or any AISD 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 the Denton County Central Appraisal District’s website.


Additional Property Tax Relief

Texas lawmakers approved legislation that would increase the homestead exemption for property owners pending voter approval. If the constitutional amendment is passed by voters in May, the homestead exemption will increase from $25,000 to $40,000, lowering the taxable value for homeowners. For homeowners whose home values stay the same, or increase less than $15,000, their tax bill should be lower than last year.