In the upcoming fiscal year, the average Plano homeowner will have a total payment of $4,315 to Plano Independent School District in taxes, as opposed to the $5,173 paid during the 2022-23 fiscal year.
During a board of trustees meeting on Aug. 8, 2023, Johnny Hill, the deputy superintendent for business and employee services at Plano ISD, provided the board with an update regarding recent legislative changes that will impact the budgetary process for the current year.
Beginning the academic year 2024-25, Plano ISD will implement a 20% appraisal cap for non-homestead residents and commercial real estate properties valued under $5 million. The district also proposed a tax rate of $1.07885, in contrast to the previous year's rate of $1.2597.
The Plano Star Courier explained the new tax decrease comes following Senate Bill 2, which will reduce the max compression tax rate by 10.7 cents for the 2023 fiscal year. Under SB2, the homestead exemption will increase from $40,000 to $100,000.
Additionally, Senate Bill 3 — a property tax relief through the public school finance system, exemptions, limitations on appraisals and taxes and property tax administration — will increase franchise tax exemptions by a total of $2.47 million.
“I have been fighting for property tax relief at the Texas Capitol since 2003, 4 years before I was elected to the Senate, and I have not stopped since then,” Lt. Governor Dan Patrick said after the bills were passed. “When I took office as Lt. Governor in 2015, the homestead exemption was $15,000, and my goal was to increase it to $100,000. In 2015, we increased it to $25,000. In 2021, we increased it to $40,000. This session, our record budget surplus gave us the opportunity to increase the homestead exemption to $100,000.”
The district is expected to approve the proposed tax rate during its next meeting on Aug. 22, 2023.
