How Is Manor ISD Able To Lower The Tax Rate While Increasing M&O Revenue? 

To explain it as simply as possible, school district property taxes are broken up into two pieces. One is called the Maintenance & Operations (M&O), which is used to pay salaries and fund operations, and the other is called Interest & Sinking, which is used to pay debt. The increase in the tax rate for Maintenance & Operations under Prop A would be made in conjunction with an almost 2.5 cent reduction in the Interest & Sinking tax rate, which is used to pay debt. These factors, the district’s work to responsibly pay debt ahead of schedule and the state lowering the maximum compressed tax rate during its 88th legislature session last year would result in a tax rate that is .0047 cents lower than last year’s rate.

Understanding the Ballot Language

The Texas Tax Code provides mandatory ballot language for a VATRE. The statutorily required ballot language assumes that a VATRE will increase the amount of maintenance and operations tax revenue in this year as compared to last year. Under this statute, the District is not permitted to modify this ballot language to state that its overall tax rate will be decreasing from last year.

It’s also important to note that the revenue increase for Manor ISD  that is indicated on the ballot is actually $1.5 million less than what the district will actually receive. This is due to the maximum compression tax rate not being included in that calculation. When including the maximum compression tax rate that amount will equal $4.8 million.

Polling Locations

Prop A’s Impact On Senior and Disabled Citizens

Typically, property taxes for citizens 65 years or older—or those who are disabled—are not affected by a rate increase. As Manor ISD’s tax rate would decrease if Prop A is approved, their tax rate would also go down if the appropriate homestead exemptions are filed with the County Appraisal District.