Tax Impact

Tax Impact from Devine ISD's Bond Election and VATRE
Posted on 09/07/2023
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The Devine ISD School Board called for an $11.255 million bond election and a voter-approval tax ratification election (VATRE). The purpose of the bond election is to fund capital improvements to be made district-wide for the safety and security of all campuses.  The VATRE is being called in order to recapture three cents that the district lost because of mandatory compression by the state in 2019.


What will the ballot look like?


DEVINE INDEPENDENT SCHOOL DISTRICT SPECIAL ELECTION

(la elección especial del Distrito Escolar Independiente de Devine)

November 7, 2023
(día 7 de noviembre del 2023)

 

DEVINE INDEPENDENT SCHOOL DISTRICT PROPOSITION A

DISTRITO ESCOLAR INDEPENDIENTE DE DEVINE PROPOSICIÓN A

□ FOR

  (a favor)

 

 

 

 

□ AGAINST

  (en contra)

RATIFYING THE AD VALOREM TAX RATE OF $0.9670 PER $100 VALUATION IN THE DEVINE INDEPENDENT SCHOOL DISTRICT FOR THE CURRENT YEAR, A RATE THAT WILL RESULT IN AN INCREASE OF 0 PERCENT IN MAINTENANCE AND OPERATIONS TAX REVENUE FOR THE DISTRICT FOR THE CURRENT YEAR AS COMPARED TO THE PRECEDING YEAR, WHICH IS AN ADDITIONAL $0.

RATIFICAR LA TASA IMPOSITIVA AD VALOREM DE $0.9670 POR CADA $100 DE VALUACIÓN EN EL DISTRITO ESCOLAR INDEPENDIENTE DE DEVINE PARA EL AÑO EN CURSO, UNA TASA QUE RESULTARÁ EN UN AUMENTO DEL 0 POR CIENTO EN LA RECAUDACIÓN DEL IMPUESTO DE MANTENIMIENTO Y OPERACIONES PARA EL DISTRITO PARA EL AÑO EN CURSO EN COMPARACIÓN CON EL AÑO ANTERIOR, LO QUE EQUIVALE A $0 ADICIONALES.

 

DEVINE INDEPENDENT SCHOOL DISTRICT PROPOSITION B

DISTRITO ESCOLAR INDEPENDIENTE DE DEVINE PROPOSICIÓN B

□ FOR

  (a favor)

 

 

 

 

□ AGAINST

  (en contra)

THE ISSUANCE OF $11,255,000 OF BONDS BY THE DEVINE INDEPENDENT SCHOOL DISTRICT FOR SCHOOL FACILITIES, WITH PRIORITY GIVEN TO DISTRICT-WIDE SAFETY AND SECURITY RENOVATIONS AND IMPROVEMENTS, AND THE LEVYING OF A TAX IN PAYMENT THEREOF. THIS IS A PROPERTY TAX INCREASE.

LA EMISIÓN DE $11,255,000 EN BONOS POR PARTE DEL DISTRITO ESCOLAR INDEPENDIENTE DE DEVINE PARA INSTALACIONES ESCOLARES, DANDO PRIORIDAD A LAS RENOVACIONES Y MEJORAS DE SEGURIDAD Y PROTECCIÓN EN TODO EL DISTRITO Y LA IMPOSICIÓN DE UN IMPUESTO PARA EL PAGO DE LO ANTERIOR.  ESTE ES UN INCREMENTO DEL IMPUESTO A LA PROPIEDAD.

In Proposition A, voters will notice that the language states that there will be a 0% increase in the Maintenance & Operations tax rate as a result of this election. This portion of the tax rate is used to pay for the daily operation of school business, such as teacher and staff salaries, classroom supplies, and building repair and maintenance.  The ballot states that the M&O tax rate will not be increased, which is ballot language required by state law.  Instead, the tax rate will be decreased because the state compressed the tax rate in the past legislative session.  The tax rate was compressed from the 2022 rate of $0.8546 to $0.6970.  In the VATRE election, the district is asking the voter to approve a rate three cents higher than the compressed rate for a total of $0.7270 for 2023, lower than the 2022 tax rate.

In Proposition B, the language states “This is a Property Tax Increase”, which is language required by state law.  This portion of the tax rate is called Interest & Sinking and is used to pay off voter approved debt.  This tax rate is currently 24 cents and will remain 24 cents even if the bond is approved.  State law does not allow the district to change the ballot language to reflect the facts.  As a result of this requirement, voters in DISD will see this language on the bond proposition; however, the DISD Interest & Sinking tax rate will not increase as a result of the 2023 bond election.  


How are school tax rates determined?

The school district’s revenue is generated by two sources: tax collections and state aid. The Devine ISD tax rate that is on tax statements is composed of two board–adopted rates, Maintenance & Operations (M&O) and Interest & Sinking (I&S).


The I&S portion of the school tax rate is used to pay voter-approved bonds. This portion of the school district tax rate is decided on by the board of trustees based on the amount of money required to make the yearly bond payment. This rate is currently 24 cents and is sufficient to fund the entire $11.255 million proposed bond. 


The M&O tax rate is essentially determined by a state funding formula.  In 2019 as part of this funding formula, the state compressed DISD’s M&O tax rate by 17 cents, but the state allowed the district to retain five of those pennies by board resolution.  School districts could only recapture the remaining twelve cents by voter approval.  In the VATRE election, the district is asking to recapture three of these remaining pennies. 


Since 2018, the school tax rate has decreased annually as shown in the table below.


Tax Year

M&O Tax Rate

I&S Tax Rate

Total Tax Rate

Decrease from prior year

2012-2017

1.17

.20

1.37

--

2018

1.17

.165

1.3350

.0350

2019

1.0683

.160

1.2283

.1067

2020

1.0272

.20

1.2272

.0011

2021

.8790

.24

1.1190

.1082

2022

.8546

.24

1.0946

.0244

Proposed 2023

.7270

.24

.9670

.1276


How much will my taxes be if both propositions pass?

School property tax is calculated by taking the value of the home as appraised by the Medina or Frio County Appraisal Districts, subtracting the homestead exemption, then dividing this amount by $100 and applying the school tax rate to the result.  If the homestead exemption is voter approved at $100,000 and you have a house valued at $150,000, then it would look like this: 

($150,000 - $100,000)/$100) X .9670 = $483.50/year for 2023.


The chart below shows what your school tax bill would be based on different home values and four possible outcomes of the election.


Appraised Value of Home

Less Homestead Exemption

2022 Annual School Tax

2023 Annual School Tax if both props pass 

(0.967)

2023 Annual School Tax if only the Bond passes (0.937)

2023 Annual School Tax if only the VATRE passes (0.967)

2023 Annual School Tax if both props fail (0.937)

$100,000

$0

$656.76

$0.00

$0.00

$0.00

$0.00

$150,000

$50,000

$1,204.06

$483.50

$468.50

$483.50

$468.50

$200,000

$100,000

$1,751.36

$967.00

$937.00

$967.00

$937.00

$250,000

$150,000

$2,298.66

$1,450.50

$1,405.5

$1,450.50

$1,405.50

This chart assumes a $100,000 homestead exemption.

Please direct questions to the Central Office at 830-851-0795 or by email at [email protected].


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