Property owners in Hurst to see a drop in taxes

by PegNews wire

Property owners in HEB ISD will experience a substantial reduction in property taxes this year. Combined with last year’s decrease, school property taxes in HEB ISD will have declined from $1.72 per $100 in 2005 to approximately $1.303 for 2007.

News straight from the horse's mouth, in which case the horse is Superintendent Dr. Gene Buinger.

The reduction in property taxes is the result of the new school finance plan adopted by the Texas Legislature in June 2006. Reacting to high property taxes, the state’s lawmakers created a new business tax to generate additional revenue to enable Texas school districts to reduce M & O property taxes by approximately one-third. The reduction was to be phased in over two years (2006 and 2007).

The amount of tax that each school district levies is divided into two accounts. The Maintenance and Operation fund (M & O) is the largest, because it must generate enough revenue to operate the schools. The second fund (I & S) pays off the bonded indebtedness of the school district.

In 2005, the last year of the old school finance program, the M & O fund tax rate was $1.47, and the I & S tax rate was a shade over $.025. For 2007, the M & O tax rate in HEB ISD will be $1.04 and the I & S tax rate will be approximately $0.2637.

What will this mean to the taxpayer? The “average” homeowner will experience a $284.56 decrease in taxes. The “average” homeowner is defined as a person owning a home valued (market) at $138,968. This “average” taxpayer would see school property taxes decrease from $1,837 last year to $1,552 this year. Also, keep in mind that property taxes decreased last year, so the two-year total will be well above the $284.56 savings this year.

The reduction in school property taxes will be a financial “shot in the arm” to homeowners facing rapidly increasing energy costs and other inflationary pressures. Since Texas does not have a personal income tax, property taxes are high and represent, to most taxpayers, the largest part of the taxes paid to support state and local government. Reducing school M & O property taxes by nearly one-third will be a welcome relief to Texas property owners.

Source: HEB Superintendent, Gene Buinger