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MISD Lowers Tax Rate 9.8 Cents, Will Save about $370 on Annual Property Taxes for Average McKinney Home Value ($377,755)

Press Release|
Shane Mauldin|
Wednesday, August 25, 2021
McKinney ISD Board of Trustees President Amy Dankel at an MISD board meeting in January. On Tuesday night, the board approved a 9.8 cent MISD tax rate decrease.

McKinney ISD Board of Trustees President Amy Dankel at an MISD board meeting in January. On Tuesday night, the board approved a 9.8 cent MISD tax rate decrease.

McKinney, Texas – At their August meeting on Tuesday night, the McKinney ISD Board of Trustees approved a 9.8 cent property tax rate decrease for 2021–2022.

The drop in the tax rate is the result of MISD’s use of federal ESSER III grant funding that will be available from 2021–2022 through the 2023–2024 school year. The ESSER III funds will allow the district to forego access to the Voter Approved Tax Rate Election (VATRE) that passed overwhelmingly in May and provide a more significant overall tax decrease than that which the VATRE would have resulted in.

The district originally planned to access the VATRE to provide a net tax rate decrease of 3 cents. However, the availability of ESSER III funds now positions the district to provide a substantially lower tax rate without accessing the VATRE.

For 2021–2022 the MISD Maintenance & Operations tax rate will drop from the previous $1.0547 per $100 of assessed property value to $1.0067 — a decrease of 4.8 cents. The Interest & Sinking tax rate will drop from $0.42 to to $0.37 — a decrease of 5 cents.

The new MISD combined tax rate for 2021–2022 is $1.3767 per $100 of assessed property value.

For the average home value in McKinney ($377,755), the new combined tax rate will result in approximately $370 in savings on annual property taxes.

“The opportunity to substantially reduce the district’s tax rate by 9.8 cents while at the same time meeting the needs of all of our students is a win for our students, our stakeholders and MISD,” said Jason Bird, Deputy Superintendent of Business, Operations, Accountability and Technology. “McKinney has always supported and recognized the value of strong schools, and this funding presents an opportunity to provide additional tax relief to our taxpayers.”

ESSER funds were introduced through three pieces of legislation and are administered by the Texas Education Agency as separate grant programs. ESSER I was authorized as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Those grants were intended to help schools respond to COVID-19. ESSER II and III are intended to cover the costs of reopening and operating schools with new safety protocols and to support districts as they navigate the operational impact of the COVID pandemic. ESSER I and ESSER II totaled $6.8 billion at the state level, and ESSER III totaled $11.2 billion in relief funds to the state. ESSER I and ESSER II funds were fully supplanted by the State, meaning no additional funds were received by MISD.

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