Tax Impact

If the bond is approved by voters, there would be no changes to the current Canton ISD tax rate. 

Canton ISD has set its I&S tax rate at $.431 cents. The I&S rate has been at $.431 since 2008. By law, .50 cents is the maximum I&S tax rate a school district can set. 

Taxpayers pay a combined tax rate to Canton ISD that supports two different funds. The maintenance and operations (M&O) tax rate funds the general operations of the District. This is like the part of a household budget that pays for utilities, food, clothing and gasoline. As schools are a people-intensive business, approximately 80 percent of these funds go to salary and personnel costs.

The interest and sinking tax rate (I&S), often called the debt service tax rate, funds the debt generated by the issuance of schoolhouse bonds. This is like the part of a household budget that pays for the home mortgage, the car loan or a financed expenditure for a computer or other large item. Canton ISD must seek the approval of voters to authorize the issuance of bonds. 

Due to a state law, you will see “This Is a Property Tax Increase” on your ballot. However, the CISD tax rate will not increase as a result of this bond election. This is standard language required on all school bonds, meaning taxes will have to be levied in order to repay the bonds. However, CISD can make all existing and new bond payments with the $0.431 I&S tax rate residents are currently paying. 

No, according to state law, the dollar amount of school taxes imposed on the residence homestead of a person 65 years of age or older cannot be increased above the amount paid in the first year after the person turned 65 – regardless of changes in tax rate or property value – unless significant improvements are made to the home. Normal repairs, maintenance and the economic impact of the market cannot increase the amount of taxes you will pay once a tax ceiling is in place on that homestead.