Pearland - Friendswood Edition | October 2024

Education

BY HALEY VELASCO

Alvin, Friendswood and Pearland ISDs each adopted a lower tax rate compared to the prior fiscal year, but residents in all three districts could still see an increase in the district’s portion of their tax bills. Officials from each district said they don’t feel responsible for the tax increases, saying it is the result of rising property values. Home appraisals, which are a key factor in tax bills, are set at the county level, according to the Texas Comptroller’s Office. The state sets the rules for what kind of tax rate districts can adopt through a formula. If a homeowner’s appraisal compared to the year before increases at a higher percentage than the tax rate was lowered, it’s likely they will pay more in overall taxes. Despite lower tax rates, tax bills could go up

Alvin ISD new home values vs. existing home values

The cause

Average new home

Average existing home

While increasing valuations are something many districts across Texas are facing, AISD is facing a different challenge. District documents show the average home- owner in AISD could see roughly a $200 increase in tax rate bills this year. However, officials said the reason for this inflated average can be attributed to new home builds, which are often appraised at higher values than existing homes and, as a result, lead to a higher average. Despite this, officials said the increase may not be indicative of what the average homeowner who already has existing property in the district could pay, AISD Chief Financial Officer Daniel Combs said. “If you compare the average home price paid in taxes 10 years ago versus now, it looks like a huge increase, but that’s not the same home,” Combs said.

$255,691 $193,812

2013

2015 2014 2017 2016

$321,576 $253,201

2018

2019 2020

2021

2022

$418,188 $369,714

2023

$0

$200K

$400K

$600K

Home value SOURCES: ALVIN ISD, ZONDA DEMOGRAPHICS/COMMUNITY IMPACT

Change from 2023-24 to 2024-25

The takeaway

Key

Decrease

Increase

Average taxable home value

School district

FY Tax rate

Average tax bill

However, AISD, FISD and PISD did not do this. FISD Superintendent Thad Roher said the district needs the additional revenue. “We need more [money] in order to pay teachers, to be competitive, to keep working on facilities, to buy gas, to pay for the electricity,” Roher said. “All of those things are going up so you can’t lower your revenue.”

Officials from AISD, FISD and PISD said a solution could be for Texas to give more state funding and increase the per-student allotment, which has been $6,160 since 2019. Another option is for districts to adopt a rate either at or lower than the no-new-revenue rate, which is the tax rate that produces the same amount of tax revenue as the last year.

AISD FISD PISD

1.68% 9.12% 7.14% 3.7% 8.22% 4.21% 0.2% 25.88% 25.63%

NOTE: TAX BILL CHANGES ARE BASED ON THE AVERAGE AND WILL VARY BASED ON THE CHANGE IN INDIVIDUAL PROPERTY VALUE FOR EACH HOMEOWNER. SOURCES: ALVIN ISD, FRIENDSWOOD ISD, PEARLAND ISD/COMMUNITY IMPACT

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PEARLAND - FRIENDSWOOD EDITION

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