How Will My Taxes be Affected?

infographic explaining how to calculate the tax increase

Mesquite ISD's current tax rate is $1.46. But that rate is actually divided into two parts: M&O and I&S. Read more below to understand how these funds are used differently.

Maintenance & Operations (M&O)                        

The M&O portion of the tax rate pays for everyday operational costs of the district, including salaries, utilities, gasoline for district vehicles, paper and other office supplies, etc.  Approximately 80% of the M&O budget goes to pay employee salaries. $1.04 of the current tax rate goes toward the M&O portion of Mesquite ISD's budget.

Interest & Sinking (I&S)

The I&S funds received through school taxes pay the district’s debt that has been incurred through the sale of bonds. I&S funds can only go toward debt repayment; in other words, they cannot be used to pay for daily operational expenses like teacher salaries. Bonds have different term-lengths, depending on the type of expense they fund.  For example, bonds that pay for the purchase of school buses would have a shorter repayment term than bonds that finance the cost of a $60 million middle school. 42 cents of the current tax rate goes toward debt repayment (the I&S portion of the district's budget).

How the 2018 Bond Package Affects Property Taxes

The current M&O tax rate is $1.04 per $100 of property valuation. The I&S tax rate is 42 cents per $100 of property valuation. Together, the total tax rate is $1.46.

If the bond package is approved by voters on May 5, 6 cents will be added to the I&S tax rate, bringing the total tax rate to $1.52.

For the average home in Mesquite ISD valued at $128,000—with a homestead exemption on file—the additional 6 cents will add about $62 per year to the homeowner’s property tax bill.

No Tax Increase for Senior Citizens

State law freezes property tax rates for homeowners 65 years of age or older if they apply for an exemption. This means their homestead school taxes will not increase as long as they remain in the same residence and do not make major improvements to their residence.