Tax Information

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The Prosper ISD tax rate will not change as a result of the 2019 bond election.

Public school taxes involve two figures, which divide the school district budget into two “buckets.”

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  • The first bucket is the Maintenance and Operations budget (M&O), which funds daily costs and recurring or consumable expenditures such as teacher and staff salaries, supplies, food and utilities. Approximately 83% of the District’s M&O budget goes to teacher and staff salaries.

  • The second bucket is the Interest and Sinking Fund (I&S), also known as Debt Service, which is used to repay debt for capital improvements approved by voters through bond elections.

Proceeds from a bond issue can be used for the construction and renovation of facilities, the acquisition of land and the purchase of capital items such as equipment, technology and transportation. By law, I&S funds cannot be used to pay M&O expenses, which means that voter-approved bonds cannot be used to increase teacher salaries or pay rising costs for utilities and services.

If the bond election is approved by voters, the Prosper ISD total tax rate will remain at $1.67 per $100 of property valuation. According to state law, a public school district cannot raise taxes higher than $1.67. It is the district’s intent to issue future bonds within the existing tax rate and sell bonds to fund projects when it has the capacity to do so.

Prosper ISD can maintain the same tax rate because of increased revenue from growth in the area, rising Taxable Assessed Values (TAVs), and because the Board of Trustees has continued paying down existing debt from the 2007 bond. Each year as more businesses and homes are built, the taxable value of Prosper ISD grows, and the bonds would be sold against that new value.

 

Tax Rate History

Same total tax rate for 10 of the last 12 years

The tax rate will remain at $1.67 per $100 of property valuation, regardless of the bond election results.
 

Voters Over 65

Prosper ISD property taxes for citizens age 65 or older would not be affected by the bond election.

  1. The school district tax rate will not change for anyone as a result of this election.

  2. Citizens 65 & over are eligible for an “over 65” homestead exemption.

According to 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 may file a homestead application at any time, or contact your local appraisal district to see if you already have the appropriate exemption on file.