Tax Ratification Election (TRE)

ELECTION DAY
  • Tuesday, October 3,  2017
  • 7am-7pm
  • Martinsville ISD Administration Building
 
EARLY VOTING
  • September 18-30
  • Monday-Friday, 1pm - 4pm
  • Martinsville ISD Administration Building
 
SUMMARY
  • Overall tax rate will be lowered to $1.2008
  • Move 13¢ from Interest and Sinking (I&S) side of the tax rate to the Maintenance and Operations (M&O) side of the tax rate

Maintenance and Operations (M&O)

Interest and Sinking Tax (I&S)

Day-to-day expenses of the district

Debt for school buildings for the district

Examples: salaries, building expenses, transportation, utilities, supplies

Example: similar to home mortgage loan

M&O + I&S = District Tax Rate

Year

M&O

I&S

Total Tax Rate

2016/17

$1.04

$0.2218

$1.2618

*2017/18

$1.17

$0.0308

$1.2008

*Proposed Tax Rate
Net change to overall tax rate will be $0.0618 lower than prior year.

ADDITIONAL FUNDING
  • The shift in tax rate will generate approximately $242,000 in additional funding for the school district with no increase in tax rate for the MISD taxpayers.
 
FAQs

Why does MISD need a TRE?

To generate additional state funding without a tax rate increase to allow the district to continue to provide a quality instructional program for our students.

 

What is a TRE?

A Tax Ratification Election for Martinsville ISD would be a restructuring of the district’s current tax rate. There would not be an increase in the tax rate. In order for a district to adopt a tax rate above the maximum M & O tax rate of $1.04 it must hold a Tax Ratification Election (TRE) for the voters to ratify that rate.

 

What will the new tax rate be, and how will it impact me?

 

Prior Year (2016/17)

Tax Rate

Proposed

(2017/18)

Tax Rate

Maintenance & Operation (M&O)

$ 1.04 

$ 1.17

Interest & Sinking (I&S)

$ 0.2208

$ 0.0308

   Total

$ 1.2608

$ 1.2008

 

 

**Even with this proposed change, your tax rate will actually decrease from last year.

 

How will the TRE affect my taxes?

Passage of the TRE will not increase the amount of school taxes you pay. If the TRE is approved, the overall tax rate will be $1.2008. The shift in the M & O and I & S tax rates will generate an additional $242,000 per year for the next two years for the district. If the TRE is not approved, the tax rate will remain at $1.2008 but MISD will receive no additional funding.

 

How does a TRE bring in more money for the district if the tax rate is the same?  

While the state contributes money on the I&S side of taxes, it contributes more on the M&O side; and if a district passes a TRE to swap pennies from the I&S side to the M&O side, the district receives even more in state aid.  The tax swap provides a way to increase our funding from the state without having the taxpayers pay any more.

 

What will you do with the additional money?

The funds will be used to pay for the cost of teacher salaries, maintaining school property, providing transportation, increasing student safety, and funding the costs for extracurricular activities.  

 

What if I am 65 or older and my taxes are frozen?

The TRE will not affect the tax rate for those over 65.  Your taxes are frozen.

 

The wording on the ballot looks like the tax rate is going up...

Do not let the ballot wording confuse you. The wording on the ballot for the Tax Ratification Election is prescribed by law. State law requires the ballot reads:

 

“Approving the ad valorem tax rate of $1.2008 per $100 valuation in Martinsville Independent School District for the current year, a rate that is $0.13 higher per $100 valuation than the school district rollback tax rate, for the purpose of maximizing state funding.  If approved, the tax rate of $1.2008 will allow the District to shift tax effort from I&S, for the payment of principal and interest on bonds, to maintenance and operations, and will still be lower than the 2016-2017 tax rate of $1.2618.”

 

To further clarify the purpose and need for the TRE, the MISD Board of Trustees passed an ordinance on August 31, 2017 which if the TRE passes, moves the $0.13 from the Interest and Sinking Fund (I & S) to our Maintenance and Operations Fund (M & O). This makes the overall tax rate $1.2008. This shift would generate approximately $242,000 per year for two years in additional state funding for the school district with no increase in tax rate for the MISD taxpayers.

If further information is required, please contact MISD Superintendent David Simmons at dsimmons@martinsvilleisd.com or 936-564-3455.