Excellence
Understanding the Tax Rate
School tax rates in Texas consist of two parts: the Maintenance & Operations (M&O) rate and the Interest and Sinking (I&S) rate.
- Revenue from the M&O rate pays for the district’s daily operations, including salaries, utilities, and educational materials.
- Revenue from the I&S rate pays the district’s debt that finances bonds, which fund large investments like construction projects.
Mesquite ISD’s total tax rate has declined by nearly 21 cents since 2018-19. (See graph below.) In August, the Board of Trustees lowered the I&S tax rate by 4 cents and the M&0 tax rate by 1.74 cents for a total tax rate of $1.2546 per $100 of property valuation. This is a total rate reduction of 5.74 cents from last year. The district is now seeking voter approval to increase the M&0 rate by 3 cents, which, if approved, will still result in a reduction of 2.74 cents over last year’s rate.
Comparing Tax Rates
$1.312
2021-22
total tax rate
$1.2546
2022-23
total tax rate
$1.2846
2022-23
total tax rate
if voters approve the VATRE ballot measure
(3-cent increase)
The total tax rate for 2022-23 is set at 5.74 cents lower than the prior year's tax rate. Through the VATRE, MISD is seeking voter approval to add 3 cents to the M&0 portion of the tax rate. If approved, the total tax rate will be 2.74 cents lower than last year’s rate.
Here is how the VATRE proposal will impact the amount of taxes homeowners will pay:
| Home Value | $200K | $300K | $400K | $500K |
|---|---|---|---|---|
| Taxable Value (with $40,000 Homestead Exemption) |
$160K | $260K | $360K | $460K |
| Annual Taxes (without VATRE Approval) | $2,007 | $3,262 | $4,517 | $5,771 |
|
Annual Taxes with VATRE Approval |
$2,055 | $3,340 | $4,625 | $5,909 |
| Difference in Tax Amount with VATRE Approval | +$48/yr or +$4/mo |
+$78/year |
+$108/year |
$138/year or $11.50/mo |
Homeowners who have the disabled residence homestead exemption or over 65 homestead exemption will not see their property taxes increase because state law freezes their taxes as long as they remain in their homes and do not make any major home improvements.
Value of Golden Pennies
The 3-cent increase would generate $3.7 million annually in local tax revenue. But because these are “golden pennies,” the 3-cent increase would also result in 12.7 million in additional funding from the state annually, for a total revenue increase of $16.4 million each year! If voters do not approve the increase of 3 golden pennies, Mesquite ISD will not receive any of the $16.4 million of additional revenue.
Calculate How 3 Additional Cents will Affect
Your School Taxes
Click the link below to find your home's taxable value.
Dallas Central Appraisal District website
- Enter your address to search for your property.
- When the results of your search appear, click on your property address.
- Scroll down the page to the table titled "EXEMPTIONS."
- Locate the box that indicates "taxable value" in the "school" column.
- Divide the Taxable Value by 100.
- Multiply the result from #5 by 1.2546. This is the amount of property tax you will owe for 2022-23.
- To determine the amount of taxes you will owe if the VATRE ballot measure is approved by voters, multiply the result from #5 by 1.2846.
- Compare the result from #6 with #7 to see the difference in school taxes you will owe under both scenarios.