TAX INFORMATION
UNDERSTANDING THE TAX RATE
A school district's total tax rate is made up of two parts, which divide the school district budget into two “buckets” - the maintenance and operations (M&O) rate and the interest and sinking (I&S) rate. Each has a designated purpose and budget.
M&O TAX RATE VS. I&S TAX RATE
The M&O budget is used for daily operations of the district, including utilities, salaries, supplies, repairs, and fuel.
The I&S budget is used to repay debt for capital improvements through voter-approved bonds. These improvements include new construction, renovations, HVAC and roofing replacements, land purchase, furniture, and technology.
Bond elections only affect the I&S tax rate. Funds from a bond CANNOT be used as part of the M&O budget or to increase salaries.
HOW DOES THE BOND IMPACT TAXES?
If approved, the Sweetwater ISD I&S tax rate will increase by 18 cents.
AREA TAX RATE COMPARISON
RESIDENTS 65 AND OLDER
School district taxes for citizens 65 years or older who have filed the “over 65 homestead exemption” will not increase.
By 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 must file a homestead application at your appraisal district to receive the exemption.