Local school taxes make up a big part of a homeowner’s property tax bill. Compared to other school districts in the region, AISD has the lowest overall property tax rate.
A homeowner's tax bill is broken into two parts: Maintenance and Operations (M&O) covers operating costs like salaries, benefits and utility bills; Interest and Sinking (I&S) covers interest on bond debt for facilities.
Recently, media incorrectly reported the proposed tax rate for Austin ISD, stating the district would set its tax rate at 8 percent above the effective rate nearing the rollback rate. This is incorrect as AISD's effective tax rate is 1.1091 cents per $100 of taxable value. The proposed M&O tax rate is 1.079 cents per $100 of taxable value.
The M&O tax rate for AISD has remained the same for 10 years. It has not changed since voters approved a tax ratification election in 2008. The proposed interest and sinking rate, which covers the debt associated with the bonds approved by taxpayers, also remains unchanged from last year. Over the past five years, the district has lowered its I&O rate by four cents.
It is also important to know that the rollback tax rate—the calculated maximum rate allowed by law without voter approval—is calculated differently for school districts compared to cities or counties. While the rollback rate is calculated by adding an eight percent increase to the effective rate for cities and counties, in school districts, the rate is calculated by adding four cents to the lesser of the compressed operating tax rate or the effective M&O rate. More information on tax rate proposals and the district budget can be found on the AISD budget website.