Business and Finance
The proposed tax rate for 2017-2018 remains at $1.37, unchanged from 2016-2017.
The Pilot Point Independent School District proposes to adopt a tax rate that will raise more taxes for maintenance and operations than last year's tax rate. The tax rate will effectively be raised by 5.8% percent and will raise taxes for maintenance and operations on a $100,000 home by approximately $68.
The effective tax rate calculation enables the public to evaluate the relationship between taxes for the prior year and the current year, based on a tax rate that would produce the same amount of taxes if applied to the same properties taxed in both years. Full disclosure under Tax Code 26.04 requires the District to use special language to describe the increase tax collections at the local level.
It is important to recognize that the current state funding formula for public education does not allow a district to keep the additional taxes collected at the compressed maintenance and operations tax rate as a result of having a higher tax base. The state's revenue contribution to the district will decrease to offset the increased local tax collections based on the maintenance and operations compressed rate in the state's funding formula.
tax table explanation
The maintenance and operations (M&O) tax rate contributes to the overall funding allowed by the state of Texas for the district's general operations. General operations include staff, utilities, bus services, health services, and other campus and district-wide operations. School district operations are service oriented therefore approximately 80 percent covers payroll costs.
The interest and sinking (I&S) tax rate, also known as the debt service tax rate, funds the district's debt. Pilot Point ISD must seek approval from voters to authorize the issuance of bonds. Voters review and vote on a bond package, and bonds are only issued as the projects take place.
All Pilot Point ISD taxes are collected by the Denton County Tax Office: Denton County Tax Assessor/Collector