Sherman ISD property owners will see a significant reduction in the tax rate used to calculate their annual tax bills.
The SISD Board of Trustees approved a 2023 tax rate of $1.2365 per $100 of property valuation at their regular September meeting, the lowest tax rate in more than two decades. That’s a drop of more than 18.5 cents from 2022 and a decrease of more than 41 cents since 2018.
The tax compression will likely be combined with a significant increase in the homestead exemption, which will further lower tax bills. On Nov. 7, Texas voters will consider whether to approve a constitutional amendment that would increase the homestead exemption for school district property taxes from the current $40,000 to $100,000. A homestead exemption is the amount a homeowner can take off the appraised taxable value of the house they live in before it is taxed.
The Texas Legislature has committed to making up the lost school district funding from the tax compression using surplus funds in the current two-year state budget. Lawmakers will have to determine how to sustain the cuts for the long term.
“Sherman ISD is committed to being a responsible steward of our tax dollars,” said Superintendent Dr. Tyson Bennett. “We are happy to see our homeowners receive a significant amount of property tax relief without decreasing our anticipated funding for public education.”