Princeton ISD taxpayers could see a drop in the district’s overall tax rate as school officials review the 2025-26 budget during a public hearing Aug. 25.

The district will hold the meeting at the PISD Administration Building, 804 Mable Ave., to discuss the district’s budget and proposed tax rate for the coming year.

The meeting begins at 6:30 p.m. and public participation is encouraged. The adopted tax rate may not exceed the proposed rate unless the district issues a revised notice and holds another meeting.

The proposed maintenance and operations tax rate is $0.7072 per $100 valuation, and the school debt service tax rate is $0.50 per $100 valuation. The debt service tax was approved by local voters and is used to pay bonded indebtedness.

Compared to last year, the proposed budget includes a 23.8% increase in maintenance and operations expenditures, a 26.7% increase in debt service expenditures, and a 24.37% increase in total expenditures.

The total appraised value of all property in the district increased from $6.48 billion last year to $7.32 billion this year. Taxable values also rose, from $4.91 billion to $5.23 billion.

Outstanding bonded indebtedness stands at about $667.85 million. 

The total proposed tax rate of $1.2072 per $100 valuation compares with last year’s rate of $1.2552.

Under the proposal, taxes on the average residence would drop from $2,631.02 last year to $2,145.38 this year, a decrease of $485.64.

State law caps school taxes for homeowners age 65 or older, or their surviving spouses, at the amount paid the first year after turning 65, regardless of property value changes.

The voter-approval rate for the district is $1.234076 per $100 valuation. If a rate higher than that is adopted, an election will be automatically triggered.

The district estimates ending the fiscal year with an unencumbered maintenance and operations fund balance of $35 million and an interest and sinking fund balance of $7 million.

Additional information about property taxes, proposed rates, and hearing schedules can be found at Texas.gov/PropertyTaxes.

See Public Notice for the Aug. 25 meeting on page 2A of the August 21st edition of The Princeton Herald.

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