Office of the Superintendent of Schools
Office of Finance and Operations
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Approval Of Resolution Reconsidering Adoption Of The Tax Year 2025 Tax Rate To Include Adoption Of Disaster Pennies Under Texas Property Tax Code Section 26.042
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To support the approved 2025-2026 budget and to make required expenditures, on September 11, 2025, the Houston Independent School District (HISD) adopted a tax rate of $0.8489 per $100 of taxable value. This rate included a maintenance and operations component of $0.6822 and a debt service component of $0.1667. Upon further review, it is recommended that HISD reconsider its adoption of the tax rate to include an additional $0.0294 cents under Texas Property Tax Code Section 26.042 Calculation and Adoption of Certain Tax Rates in Disaster Area.
HISD incurred increased expenditures of money that were necessary to respond to Hurricane Beryl. The governor of Texas declared a disaster and requested federal disaster assistance that included Harris County where HISD is located. The inclusion of disaster pennies will change the previously adopted tax year 2025 tax rate of $0.8489 per $100 of taxable value to $0.8783 per $100 of taxable value. This reconsidered rate includes a maintenance and operations component of $0.7116 and a debt-service component of $0.1667.
Texas Property Tax Code Section 26.042 states that “an election is not required under Tax Code Section 26.08 to approve the tax rate adopted by the governing body of the school district for the year following the year in which the disaster occurs”.
Approval of this tax rate will allow the Harris County Tax Assessor-Collector to begin preparation of the 2025 tax bills.
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Tax Rates |
FY 2024-2025 |
FY 2025-2026 |
Change |
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Adopted Maintenance and Operations Tax Rate |
$0.7016 |
$0.6822 |
($0.0194) |
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Interest & Sinking Tax Rate |
$0.1667 |
$0.1667 |
$0.00 |
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Tax Code Sec. 26.042 Pennies |
$0.00 |
$0.0294 |
$0.0294 |
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Total Tax Rate 2025 |
$0.8683 |
$0.8783 |
$0.0100 |
The resolution and ordinance reconsidering the adoption of the tax rate for tax year 2025 to include Texas Property Tax Code Sec. 26.042 disaster pennies is attached.
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COST/FUNDING SOURCE(S): |
None |
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STAFFING IMPLICATIONS: |
None |
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THIS ITEM DOES NOT ESTABLISH, MODIFY, OR DELETE BOARD POLICY.
recommendation
RECOMMENDED: That the School Board reconsiders and amends the previously adopted tax year 2025 property tax rate of $0.8489 to include Tax Code Sec. 26.042 disaster pennies; and, subject to the School Board’s motion to reconsider, that the School Board approves the attached resolution under Property Tax Code Sec. 26.042 to adopt a total tax rate for tax year 2025 of $0.8783 per $100 of taxable value, which includes disaster pennies and levying ad valorem taxes for the year 2025 as reflected in the resolution, effective October 16, 2025.