GCISD Bond Election 2016 | Rising Property Values Could Lessen Tax Rate Implications
Preliminary appraisal notices show increasing taxable home values for GCISD residents, which may reduce the expected tax rate increase in the district’s upcoming Bond Election. In February, the board of trustees voted unanimously to call a $248,975,000 bond election for May 7, 2016. If the election passes, taxpayers will see an increase in their debt service tax rate (learn more about the district tax rate by watching this video).
The debt service tax rate is calculated on two factors: interest rate and taxable home values. Initially, when discussing the bond proposal, the district projected selling the bonds at an interest rate of 4.5 percent along with a 3 percent increase in taxable home values. By using these factors, the district estimated the maximum tax rate increase to be 12.81 cents. Based on preliminary appraisals from the Tarrant Appraisal District (TAD), taxable home values appear to be significantly higher than projections. Combine this with the ability to sell bonds at a lower interest rate and the impact to the tax rate could be less than 12.81 cents.
Should the bond election be approved by voters, the actual amount of the tax rate increase would be determined when bonds are sold and taxable values are finalized. The district expects to receive final certified values from TAD in July 2016. To review the 2016 Bond proposal, visit GCISDbond2016.com.