Alvarado ISD Tax Rate
The Alvarado ISD tax rate will not change as a result of the 2022 bond election.
The 2020-2021 total tax rate is $1.37 per $100 of taxable value.
With the I&S rate at 50 cents, the district has been able to pay down existing debt at a faster rate, which has positioned the district to have additional bonding capacity now and in the future to address growth and facility improvements.
About Public School Tax Rates
The first bucket is the Maintenance & Operations (M&O) budget, which funds daily costs and recurring expenditures such as teacher and staff salaries, supplies, food and utilities.
The second budget is the Interest & Sinking (I&S) budget, also known as Debt Service, which is used to repay debt for capital improvements approved by voters through bond elections.
Proceeds from a bond issue can be used for the construction and renovation of facilities, the acquisition of land, and the purchase of capital items such as equipment, technology and transportation. By law, I&S funds cannot be used to pay M&O expenses which means that I&S funds cannot be used to pay teachers or pay for rising costs for utilities and services.
Homeowners Over 65
Alvarado ISD property taxes for citizens age 65 or older will not be affected by this — or any — school bond election.
The school district tax rate will not change for anyone as a result of this election.
Citizens 65 & over are eligible for an “over 65” homestead exemption.
Understanding Your Tax Bill
The illustration below explains the Alvarado ISD portions of your property tax statement.
The current homestead exemption is $25,000 but that may increase to $40,000 if the state’s constitutional amendment is approved by voters in May.
The tax rate shown on the statement is the total tax rate, combining the M&O and I&S portions of the rate. The tax rate will not increase as a result of the May 2022 bond election. In fact, the state will actually lower the M&O rate as part of their property tax relief, and the I&S rate is capped at 50 cents.
According to state law, 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 may file a homestead application at any time, or contact your local appraisal district to see if you already have the appropriate exemption on file.
The Facts about Higher Tax Bills
Your tax bill may be higher due to an increase in your property value, not an increase in the school district tax rate. Property appraisals are set by the county appraisal district, and home values have risen across our region.
