The Dripping Springs ISD Board of Trustees approved the largest tax rate reduction in more than 15 years at its Sept. 25 meeting by a vote of 6-1.
The newly adopted 2023 rate of $1.1075 per $100 of certified property value is an 18.54-cent decrease from the 2022 rate and is 41.25 cents lower than the 2018 rate.
The total tax rate of $1.1075 consists of two parts: $0.7575 for Maintenance and Operations and $0.35 for Interest and Sinking. The Maintenance and Operations portion covers district operating costs such as salaries and benefits, utility bills, and supplies, and is subject to recapture. The Interest and Sinking rate generates revenue that can only be used to pay off voter-approved debt.
Property tax bills are a product of the tax rate and the property value. Therefore, a property owners’ tax bill could increase even though the tax rate has decreased. Senate Bill 2, passed this summer by the 88th Legislature also provides for an increase in the Homestead Exemption which will appear on the November ballot. If successful, the measure will increase the state homestead exemption from $40,000 to $100,000 which would provide additional property tax relief. School district taxes are frozen for citizens who are 65 and older, have a general homestead exemption, and have taken steps with the Hays or Travis Central Appraisal Districts to claim the additional exemption.
