Early voting in BISD tax swap election to begin Aug. 8
Correction: In the Aug. 8, 2018 issue of the Breckenridge American there was an error made in the article, "Early voting in BISD tax swap election begins today.”
In the article it incorrectly states the new $1.17 rate “will raise taxes on a home valued at $100,000 by approximately $130.”
The correct amount of the tax increase on a $100,000 home resulting from a $.0015 tax increase is $1.50. This increase will happen whether or not the Tax Ratification Election happens.
Additionally, the article states “making the rate $1.17, only $0.5315 cents per $100 in valuation more than the current rate.” The figure should be $0.0015 per $100 in valuation.
The story said the BISD board, if the election passes, would vote to reduce the I&S rate by $0.13. The board in July already approved reducing the I&S rate by $0.13 for a final tax rate of $1.17. That information has already been sent to the county's Tax Collector.
The staff of the Breckenridge American regrets any misunderstanding this information may have caused.
The following version of the story is correct.
Early voting for the Breckenridge ISD Tax Ratification Election will commence Wednesday, Aug. 8, from 8 a.m. to 4 p.m. through Tuesday, Aug. 21, at the Administration offices, located at 208 N. Miller St. There is one evening early voting option from 4 to 8 p.m., Tuesday, Aug. 14.
Election Day for the measure is Saturday, Aug. 25 and those hours will be 7 a.m. to 7 p.m. All voting for this special election takes place at the district’s Administration offices.
The current, 2017-18 tax rate is $1.04 Maintenance and Operations (M&O) plus 12.85 cents Interest and Sinking (I&S) for a total of $1.1685 per $100 in valuation. The Breckenridge ISD board voted unanimously to set the 2018-19 tax rate on $100 valuation for the district for the tax year 2018, at a total tax rate of $1.30.
Doing so is part of a “tax swap” maneuver, in which the district, whose tax rate is a combination of two rates, can receive more state revenue by adding its debt payment I&S rate to its M&O rate.
BISD can collect $270,000 more in state funding if the tax swap passes, while the taxpayers of Stephens County will have the same total tax bill as if the M&O rate was $1.04 and the I&S rate was $0.13.
The rate set for the TRE is $1.17 for M&O and $0.13 for I&S.
The action to reduce the I&S rate by $0.13 and have a final tax rate of $1.17 has already been taken by the board and sent to the Tax Collector. This took place in July.
If voters approve the total tax rate of $1.30, the board has already approved reducing the I&S rate by $0.13 for a final tax rate of $1.17. That vote took place in July and has been sent to the county's Tax Collector.
The $1.17 rate the district plans to pass regardless of the outcome of the election will effectively be an increase of $.0015 per $100 in valuation, meaning the taxes on a $100,000 home would increase by $1.50.
There will be a special Breckenridge ISD board meeting set for 6 p.m. Tuesday, Aug. 28, with two budgets prepared for passage after the election.
One budget is in the case the TRE passes, with the M&O set at $1.17 and I&S at $0.00 for a total tax rate of $1.17.
The other will be used if the TRE fails, making the M&O $1.04 and the I&S $0.13, for the same total total tax rate of $1.17.
The tax swap process has been successfully used by hundreds of Texas school districts to help equalize per-student state funding, which varies widely.