The Allen ISD Board of Trustees has approved a significant reduction in the district’s property tax rates. On August 26, the Board approved a total tax rate of $1.4589 per $100 of assessed value for the 2019-2020 year. The previous year’s rate was $1.55.
The nearly ten cent reduction for Allen ISD taxpayers is a result of actions taken by the Texas Legislature during the last legislative session. House Bill 3 made changes to the school funding formula and required school districts across the state to lower property tax rates.
The Allen ISD Board of Trustees lowered the Maintenance and Operation (M&O) rate from $1.14 to $1.0489. The interest and sinking (I&S) rate will remain at $0.41 for 2019-2020.
The Board also authorized the superintendent to use I&S tax collections and the district’s I&S fund balance to reduce bond debt principal by $28 million. The district anticipates the additional payments will save Allen ISD taxpayers approximately $18 million in future interest payments. The District’s overall debt obligations will decrease by approximately $46 million.
“We appreciate the opportunity to work with our state legislators to reduce our local taxes,” said Superintendent Dr. Scott Niven. “In addition, the reduction in debt obligations will provide long-range financial benefits for the school district and its taxpayers.”