As Victoria ISD continues its efforts to provide quality education and support for its staff, a critical component of funding has come into focus: the proposed tax rate, which will be put to a vote through a Voter-Approval Tax Rate Election (VATRE).
If passed, this VATRE would generate approximately $7 million in additional annual funding, directly contributing to the 2024-25 Compensation Plan, Version Two. This plan is crucial for addressing the longstanding issue of staff compensation, which has lagged behind market rates for several years.
The Proposed Tax Rate: What You Need to Know
During the August Regular Monthly Board Meeting, the VISD Board of Trustees approved a proposed tax rate of $0.8935 per $100 of taxable value. This rate is 9 cents higher than the maximum allowable tax rate, necessitating the VATRE.
If the VATRE is approved by voters, property owners will see an additional 9 cents per $100 of taxable home value added to their property tax bill. However, it's important to note the impact of the newly implemented homestead exemption, which allows for the first $100,000 of your home’s value to be tax-free.
For a homeowner with a $300,000 home, the new tax rate would mean an increase of approximately $180 per year in property taxes after applying for the $100,000 homestead exemption.
This additional funding is intended to address the district's compensation challenges, ensuring that VISD can attract and retain high-quality staff.
For property owners aged 65 and older, there’s a significant protection in place: the tax ceiling, often referred to as a "freeze." This means that the amount of school taxes on their homestead cannot increase as long as they own and live in the home, regardless of property value increases.
Historically, VISD's current maintenance and operations (M&O) tax rate of $0.8935 per $100 of taxable property is among the lowest when compared to similar districts and communities.
The proposed tax rate, and the resulting VATRE, represent a crucial step in ensuring that VISD remains competitive in staff compensation while maintaining a balanced approach to funding. As a property owner, understanding the specifics of how this will impact your taxes is key to making an informed decision in the upcoming vote. VISD remains committed to transparency and providing the necessary resources to educate both students and the community about these important financial decisions.