As early voting gets underway, Bushland ISD is asking Potter County voters to consider the AD Valorem tax rate of $1.06 in the district for the current year. This rate would result in an increase of 5.53% in maintenance and operations tax revenue for the district.
“If it’s approved, the additional funding will be used for salaries for staff to meet the safety and security measures across the district, as well as support our current instructional programs in the district,” said Bushland ISD Superintendent Tom Giles.
The proposed tax rate on this ballot is less than last year’s total tax rate.
“So in 2023, the homestead exemption was increased to $100,000 that, in addition to the tax rate compressions by the state, are the reasons why we’re pursuing the voter approval tax rate election,” said Giles.
During the August 19th, 2024 Board meeting, the Bushland ISD Board of Trustees unanimously called for a Voter Approval Tax Rate Election (VATRE).
Here is more information on the tax rate election:
What is a VATRE?
State law requires school districts to seek voter approval to raise the tax rate above a prescribed amount. The election is referred to as a Voter Approval Tax Rate Election (VATRE).
What is the tax rate?
The graph below provides tax rate information for Bushland ISD since the 2014-2015 school year. With the proposed tax rate of $1.06469, the BISD total tax rate will have decreased by .22531 cents since 2014. Since then, the Homestead Exemption increase to $100,000 in 2023 and state-mandated tax rate compressions have resulted in a decrease in total funding available to Bushland ISD. Due to the decrease in funding, Bushland ISD has determined to adopt a tax rate higher than the voter-approval tax rate, which requires a Voter Approval Tax Rate Election. If approved, adoption of Prop A will generate $1,451,296 in additional local and state funding for Bushland ISD and the proposed total tax rate for 24-25 will be 0.00268 cents lower than the 23-24 total tax rate. If the Prop A fails, the District will not be able to adopt a tax rate greater than the voter-approval tax rate.
Passage of Bushland ISD’s PROP A would decrease the total tax rate compared to last year’s total tax rate by 0.00268 cents, creating a total rate of $1.06469, and would generate $1,451,296 in additional local and state funding for Bushland ISD. These funds would be used to provide salary for staff, meet safety and security measures across the District, as well as support use of current instructional programs.
The reference to additional tax revenue on the ballot only refers to the M&O tax effort. Bushland ISD’s proposed tax rate of $1.06469 would be a decrease in the total tax rate compared to the last year’s total tax rate of 1.06737. The Passage of Bushland ISD’s Prop A would increase local and state funding to the School District by $1,451,296 each year. These funds would be used to provide salary for staff, meet safety and security measures across the District, as well as support use of current instructional programs.
Due to the M&O tax rate compression by the State, Bushland ISD’s total tax rate would decrease from last year’s total tax rate. The District’s Superintendent, Dr. Tom Giles explains “If Prop A is approved by voters, the total tax rate would decrease by 0.00268 cents per $100 of valuation.” These funds would be used to provide salary for staff, meet safety and security measures across the District, as well as support use of current instructional programs.
Citizens 65 and older
Under state law, once a homeowner receives an over-65/disability homestead exemption, there is a tax ceiling on the dollar amount of their school taxes regardless of increases in property value or if the VATRE election is successful, unless they make significant improvements to that home. Therefore, if the VATRE is approved by voters, it will not impact the taxes of a homeowner with an Over 65 Exemption.
What is the tax ceiling?
It is a limit on the amount of taxes you must pay on your residence. The tax ceiling is the amount you pay in the year that you qualified for the Over 65 Exemption. This benefit is referred to as a tax “ceiling” because taxes can go lower than the ceiling, but not higher.
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