Houston ISD votes for property tax hike to cover storm repairs
If approved, the higher rate would be applied beginning with the 2025 tax year, meaning homeowners would not see the change on their bills until next year.
The Houston Independent School District voted to raise property taxes to pay for storm repairs, and the board is scheduled to vote on Wednesday.
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HISD officials say the district needs funds to help recoup nearly damage caused by Hurricane Beryl and to address other storm-related repairs.
The hurricane caused $9,871,463.20 to HISD property, according to a district spokesperson.
The board voted to raise the tax rate from about 85 cents to nearly 88 cents per $100 of taxable value — a roughly 3 percent increase. HISD would use a state provision nicknamed “disaster pennies,” which allows school districts to increase the tax rate after a natural disaster without putting the measure to voters.
“The HISD Board of Managers will consider a tax rate increase of $0.0294 per $100 of taxable property value to help cover damages sustained during Hurricane Beryl,” a district spokesperson wrote to KPRC 2. “Due to recent state tax cuts and expanded exemptions, the effective increase to taxpayers will be $0.01 per $100 of taxable value. With the state’s additional $40,000 homestead exemption and HISD’s local 20% exemption, the average homeowner will pay approximately $161 less than last year, even with the rate adjustment.”
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District leaders say the revenue would be directed to roof and building repairs across Houston schools. But questions remain about how much the rate increase would raise and how much of the cost could be paid through insurance or federal aid from the Federal Emergency Management Agency (FEMA).
“But wait,” you might ask, “isn’t the school district insured?”
Yes, HISD says its buildings are insured for hurricane damage. But district officials claim they need money now and can’t wait years for insurance payments to come through.
HISD estimates the proposed increase would add about $88.20 a year for the average homeowner.
For example, a homeowner with a $300,000 house could see roughly a $90 rise in annual property taxes if the change is approved and takes effect for the 2025 tax year.
Keep in mind, those state tax cuts would negate the increase in your property taxes.
For those wondering about last year’s derecho storm damage - that’s different. HISD can’t use this tax trick for those repairs because that storm wasn’t officially declared a disaster by both state and federal governments.
The higher rate will be applied beginning with the 2025 tax year, meaning homeowners would not see the change on their bills until next year.
A disaster penny tax is only valid for one year.
