Tax FAQ's

How are school property taxes structured? Taxes levied by school districts have two components: Maintenance and Operations (M&O) and Interest & Sinking (I&S). M&O taxes fund the district’s General Operating Fund and are used for day-to-day operations such as salaries, supplies, utilities, insurance and fuel. I&S taxes pay off school debt, similar to paying off the mortgage on a house. Funds generated from the I&S tax can only be used to retire bonds sold for specific purposes such as construction, renovations, buses, portable buildings, land, technology and the cost of issuing bonds.

The M&O tax rate for Eanes ISD has remained consistently at $1.04 since 2006 and the I&S tax rate has stayed at $.1625 for the past four years.

How would the bond issue impact tax rates? If the 2011 bond program is approved by the voters, the I&S tax rate is expected to increase one cent.

What will be the tax impact for a property owner? Based on the August 2010 certified values, a one-cent increase on a $500,000 home would cost a homeowner an additional $50.00 annually, or $4.17 a month.

Are bond funds recaptured? No, bond funds are not subject to recapture by the state under current school finance funding formulas; 100 percent of these funds remain in Eanes ISD.

Eanes ISD is categorized by the state as a “property-wealthy” district; as a result, approximately 55 percent of the M&O taxes received by Eanes ISD is “recaptured” by the State of Texas for redistribution to other school districts.

What is the current total tax rate and how does that compare to other districts?
Eanes ISD’s total tax rate is $1.2025 per $100 of property value. This includes a rate of $1.04 for M&O and $.1625 for Debt Service. Eanes ISD currently has the lowest total tax rate compared to 10 other Central Texas districts.

2010-11 School District Tax Rates

How has the I&S tax rate in Eanes ISD changed in recent years? The Debt Service tax rate has remained at $.1625 for the past four years, including 2010-11.

What is the district’s bond rating and general financial status? The District’s current credit ratings are “AA+” from Standard & Poor’s Rating Service, and “AA” by Fitch Ratings. The District’s FIRST (Financial Integrity Rating System of Texas) rating is “Superior Achievement.”

How will the bond issue impact residents 65 years of age or older? Homeowners with an over-65 homestead exemption would NOT see an increase in their taxes because their tax bills were frozen in the year they turned 65 (unless new improvements are made to the home). To have property taxes frozen, an application must be made to the Travis Central Appraisal District.