The Allen ISD Board of Trustees on Monday voted to reduce its overall property tax rate by 2.64 cents for the 2020-21 fiscal year.
The board approved a tax rate of $1.4325 per $100 valuation, which is down from $1.4589.
This is the seventh year in a row the district has dropped its overall tax rate. Since 2013-14 the rate has decreased by 23.75 cents.
“This is really proactive on the part of the trustees,” said Johnny Hill, chief financial officer. “They know the property values are going up locally. They don’t control the property values, but they do control the tax rate.”
Hill said the average valued home in Allen ISD increased from $372,500 last year to $374,900 this year. But he said factoring in the lower tax rate and homestead exemptions, the owner of an average-valued home in the district is expected to pay $37 less on the school district portion of their tax bill.
Broken down, the district’s maintenance and operations (M&O) tax rate will be $1.0225, and the interest and sinking (I&S), or debt service, rate will be 41 cents.
The M&O rate is a decrease of 2.64 cents, in part because of Senate Bill 2, which the Texas Legislature passed in 2019 and required, among other things, that the rate to be compressed based on property value.
The I&S rate will remain the same as it has been since 2018-19.
Hill said the board has taken steps to reduce the I&S rate over the years, adding that the rate has decreased from 50 cents to 41 cents in the last seven years.
David Hicks, chief information officer, added that the district had lowered its M&O rate even before SB 2 went into effect.