TAX INFORMATION
NO CHANGE TO THE TAX RATE
If the bond is approved, the Carthage ISD tax rate would remain the same and would not increase.
UNDERSTANDING THE TAX RATE
School district budgets are funded by two different tax rates: a Maintenance and Operations (M&O) rate which essentially funds all operating expenses, including instruction, salaries, maintaining school buildings, and student programs; and an Interest and Sinking (I&S) rate which funds bond debt.
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 voter-approved bonds cannot be used to increase teacher salaries or pay rising costs for utilities and services.
Carthage ISD is considered a “property-wealthy” district and the state recapture law requires portions of locally collected maintenance and operations (M&O) tax dollars be sent to the state.
100%
of interest and sinking tax revenue stays within the district, so all funds from the bond would stay in Carthage ISD.
PROPERTY TAX VS. DISTRICT TAX RATE
Your property tax amount is determined by the tax rates of local taxing units combined with the appraisal value of your home.
LOCAL TAXING UNITS INCLUDE:
City, county, school and special services such as community college, hospital, etc.
YOUR HOME APPRAISAL VALUE IS SET BY THE COUNTY APPRAISAL DISTRICT.
Carthage ISD has no authority on your home appraisal value and cannot raise or lower your appraised value.
HOMEOWNERS 65 AND OLDER
Under state law, as long as a homestead and over 65 exemption application have been filed with the local appraisal district, 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, increasing the overall value.