The Lamar Consolidated ISD Board of Trustees will conduct a business-heavy meeting on Thursday when it discusses the district’s property tax rate and sets the district’s 2019-20 budget.
The board unveiled this year’s proposed tax rate of $1.32 per $100 of taxable value at a meeting on Aug. 1. If the rate is adopted it will be a marked decrease from LCISD’s previous tax rate of $1.39 per $100 of taxable value.
The proposed decrease in the district’s tax rate may result in property owners seeing, on average, about a $70 reduction in their annual property tax bill, according to figures published by LCISD.
However, LCISD’s figures assume that property being taxed hasn’t increased or decreased in appraised value since 2018.
The board will also receive the certified appraisal roll with the new property values at Thursday’s meeting.
If LCISD adopts the proposed tax rate it would be lower than the district’s effective rate of $1.40757 per $100 of taxable value.
The effective rate is the tax rate necessary to produce the same amount of revenue as last year from the same number of taxable properties.
The effective rate doesn’t include new construction of new properties when calculating a budget, according to the Texas Comptroller’s Office.
A school district’s property tax rate is split into two categories: maintenance and operations and interest and sinking. State law prohibits school districts from moving funds between the two categories.
LCISD’s board is proposing a maintenance and operations tax rate of $0.97 per $100 of taxable value. The proposed maintenance and operations tax rate is lower than the district’s previous maintenance and operations rate of $1.06 per $100 of taxable value.
Funds raised for maintenance and operations are used to covers the district’s day-to-day expenses.
If the board adopts the proposed rates, the district’s interest and sinking rate would also decrease from $0.38962 per $100 of taxable value to $0.35 per $100 of taxable value. Interest and sinking funds are used to pay the interest and principal on any bonds that the district has issued.