Dripping Springs ISD Bond Referendum:
No Increase in Property Tax Rate
Approval of the bond is not anticipated to affect the current tax rate, which is $1.52 per $100 certified property value. Due to our growing population, Dripping Springs ISD plans to accomplish all of the proposed projects outlined in this bond without having to raise the total tax rate. This is possible because economic growth in the form of new construction and increased property values results in additional revenues from the same tax rate.
A school district’s tax rate consists of two parts: Maintenance and Operations (M&O) and Debt Service/ Interest & Sinking fund (I&S). Maintenance and Operations taxes fund the General Operating Fund, which pays for salaries, supplies, utilities, insurance, equipment, and the other costs of day-to-day operations.
The Debt Service tax pays off school bonds, somewhat like paying off the mortgage on a house. Revenue from the Debt Service tax rate can be used only to retire bonds sold for specific purposes: construction, renovations, buses, portable buildings, land, technology, and the cost of issuing bonds.
No increase for homeowners 65 and older.
Under Texas law, the dollar amount of school taxes imposed on the residence homestead of a person 65 years of age or older who has filed an exemption application, may not be increased above the amount paid in the first year after the person turned 65, regardless of changes in tax rate or property value. This excludes the value of any new improvements, such as additions or renovations that increase the value of the homestead.