Plano ISD trustees approve reduced tax rate for 2024-2025

After the approval of bUDGET in June, Plano ISD trustees adopted a total tax rate of $1.04245 per $100 of assessed value, which is 3 cents lower than the 2023-24 tax rate.

The lower rate was unanimously approved by the board of trustees during a August 20 working session.

What you need to know

PISD Officials recommended adopting the voter-approved tax rate, which was $1.04245 per $100 of assessed value, according to a staff presentation. A voter approval rate is a tax rate that is the maximum a taxing entity can adopt without triggering a voter approval tax rate ratification election and results in a maximum 3.5% increase in property tax revenue from per year, as described by state law.

The approved rate for PISD is divided into two components: maintenance and operations, which covers day-to-day expenses, and interest and sinking, which is used to repay debt issued by the school district.

The maintenance and operations component for 2024-25 is $0.80510 and the interest and sinking rate is $0.23735 per $100 of assessed value. According to the presentation, the more than 3 cent reduction in the tax rate came from a reduction in the maintenance and operations component.

Quote note

“The current tax rate is going down for every taxpayer,” said Board President Nancy Humphrey. “We're running on a tax rate with no new revenue and we haven't seen any increase in our funding since 2019.”

What else?

Because PISD collects more than its state property tax entitlement, it is subject to recapture, which results in property tax revenue leaving the district.

Johnny Hill, deputy superintendent for business and operations, said state recapture projections for fiscal year 2024-25 are about $193.4 million, or 34% of about $576.5 million in property tax revenue. PISD's total is one of the highest in the state, he added.