Cypress, TX News – Tax Rate Decrease Approved

Cypress, TX News (October 14, 2014) – The CFISD Board of Trustees recently gave a unanimous approval of the 2014 Tax Rate Resolution during their regular meeting, effectively lowering the tax rate from $1.41 to $1.40 per $100 of property valuation.

They approved a cumulative tax rate that will be comprised of a $1.04 Maintenance and Operations (M&O) tax rate and a $0.40 Interest & Sinking (I&S), or debt service, tax rate. The I&S rate is a $0.01 decrease from the $0.41 rate that has been in place in CFISD since 2012-2013.

Associate superintendent for business and financial services, Stuart Snow, said that the interest rate achieved with the Series 2014-C bonds came in at a significantly lower rate than the Long-Range Planning Committee conservatively estimated while preparing the $1.2 billion 2014 Bond package. That savings, coupled with higher district-wide property values, resulted in the debt service rate decrease.

This marks the first decrease for the CFISD tax rate since 2007-2008, when House Bill 1—passed by the Texas Legislature in 2006—effectively lowered the maintenance and operations (M&O) segment of school taxes from $1.50 to $1.00 per $100 of assessed property value.

“As both a CFISD taxpayer and employee, it is a nice feeling to be able to provide a great benefit to our taxpayers by reducing their taxes,” Snow said.

When factoring in CFISD’s 20-percent local optional homestead exemption with the new tax rate, district taxpayers would pay an estimated $2,088 in annual taxes on a $200,000 home—one of the lowest tax impacts in the greater-Houston area.