Introduction to the Issue
The Houston Independent School District (HISD) is considering a property tax increase to cover the costs of storm repairs, particularly those caused by Hurricane Beryl. The proposed increase would raise the tax rate from approximately 85 cents to nearly 88 cents per $100 of taxable value, representing a roughly 3 percent increase. This decision is scheduled to be voted on by the board.
Understanding the Need for the Increase
HISD officials have stated that the district needs funds to recoup the nearly $9,871,463.20 in damages caused by Hurricane Beryl and to address other storm-related repairs. The district is looking to utilize a state provision known as “disaster pennies,” which allows school districts to increase the tax rate after a natural disaster without needing to put the measure to voters.
How the Tax Increase Would Work
The proposed tax rate increase of $0.0294 per $100 of taxable property value is intended to help cover the damages sustained during Hurricane Beryl. However, due to recent state tax cuts and expanded exemptions, the effective increase to taxpayers would be $0.01 per $100 of taxable value. Additionally, with the state’s $40,000 homestead exemption and HISD’s local 20% exemption, the average homeowner is expected to pay approximately $161 less than last year, even with the rate adjustment.
Allocation of Revenue
District leaders have indicated that the revenue generated from the tax increase would be directed towards roof and building repairs across Houston schools. This is a critical step in ensuring that educational facilities are safe and functional for students.
Insurance and Federal Aid
Questions have been raised about how much of the cost could be covered through insurance or federal aid from the Federal Emergency Management Agency (FEMA). HISD has confirmed that its buildings are insured for hurricane damage. However, district officials claim that they need the funds immediately and cannot wait years for insurance payments to come through.
Impact on Homeowners
The proposed increase is estimated to 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. It’s worth noting that state tax cuts would negate the increase in property taxes.
Comparison with Other Storm Damage
It’s also important to distinguish between the damage caused by Hurricane Beryl and other storms, such as last year’s derecho storm. HISD cannot use the “disaster pennies” tax trick for repairs related to the derecho storm because it was not officially declared a disaster by both state and federal governments.
Implementation Timeline
If approved, the higher tax rate would be applied beginning with the 2025 tax year, meaning homeowners would not see the change on their bills until next year. It’s also worth noting that a disaster penny tax is only valid for one year.
Conclusion
The proposed property tax increase by the Houston Independent School District is a measure aimed at addressing the significant damages caused by Hurricane Beryl. While the increase may seem like an additional burden, the district’s plan to use the revenue for critical repairs and the mitigating effect of state tax cuts are important factors to consider. As the district moves forward with its decision, transparency and communication with the community will be key in ensuring that the needs of both the schools and the taxpayers are balanced.
