TAX INFORMATION
ROISD I&S TAX RATE WILL NOT CHANGE WITH CURRENT BOND PACKAGES
UNDERSTANDING THE TAX RATE
A school district's total tax rate is made up of two parts, which divide the school district budget into two “buckets” - the maintenance and operations (M&O) rate and the interest and sinking (I&S) rate. Each has a designated purpose and budget.
M&O TAX RATE VS. I&S TAX RATE
The M&O budget is used for daily operations of the district, including utilities, salaries, supplies, repairs, and fuel.
The I&S budget is used to repay debt for capital improvements through voter-approved bonds. These improvements include new construction, renovations, HVAC and roofing replacements, land purchase, furniture, and technology.
Bond elections only affect the I&S tax rate. Funds from a bond CANNOT be used as part of the M&O budget or to increase salaries.
ROISD TAX RATE HISTORY
Red Oak ISD has been able to reduce the district tax rate each of the past six years while still managing the Maintenance and Operations (M&O) of the District including staff raises. The Interest and Sinking (I&S) tax rate can be used only for paying debt through bonds. The District has utilized funds from Maintenance Tax Notes, capital projects funds, and Operating Funds (M&O) to complete smaller district facility projects, purchase vehicles, improve facility and cyber security, and enhance district facilities for ROISD students. But, the building of large-scale projects needs a larger funding source.
HOW WILL THE BOND AFFECT MY TAXES?
The District can currently ‘borrow’ just over $215 million in bonds without raising the current tax rate. The bonding capacity includes the full $97.5M for the current middle school; however, only $80M in bonds have been sold to date and the project is well under budget. Should all three propositions be approved by voters, the ROISD I&S tax rate would NOT increase. The current I&S tax rate of $0.3481 will remain.
RESIDENTS OF AGE 65+
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.
If you are 65 or older, you must file a homestead application at your appraisal district to receive the exemption.
Starting with 2023, if state compresses M&O tax rate, those with this exemption will see a tax reduction.