GCISD announces the 2023 Tax Rate: $0.9247

The Grapevine-Colleyville ISD Board of Trustees voted Monday, September 25, 2023, to reduce the tax rate for the fifth consecutive year. The 2023 total tax rate will be $0.9247 per $100 valuation for 2023, which is 20.61 cents less than the total 2022 tax rate.

“Over the past three years, we have been able to give nearly 40 cents back on the tax rate, and while state compression plays a role, the Board is responsible for the debt service tax rate, which we have been able to lower considerably,” Board President Shannon Braun said. “This is real savings, and our constituents will pay less on their GCISD taxes.”

The total tax rate consists of two separate tax rates: Maintenance and Operations (M&O) and Interest and Sinking (I&S). Funding received through the M&O tax rate may be used for: 

  • Day-to-day operations
  • Salaries
  • Utilities
  • Vehicle repair, maintenance and fuel
  • School supplies and materials
  • SROs and additional safety measures
  • Custodial supplies
  • Ground and building maintenance

Funding received through the I&S tax rate, which is the debt service fund, may ONLY be used to pay for voter-approved bonds.

The approved 2023 M&O tax rate is $0.7290, which consists of two tiers. As a result of House Bill 3, the school finance law, passed during the 86th legislative session, the Tier 1 M&O tax rate is $0.6790. This is set by the state and is based on July certified property values. This year, the Tier 1 M&O tax rate was calculated by the Texas Education Agency (TEA) based on an increase in property values plus an additional 10.7 cent compression required by legislation passed during the 88th Legislative Session, making this the largest tax rate reduction since 2007.

The Tier 2 M&O tax rate consists of what are referred to as Golden Pennies that may not be recaptured by the state through Robin Hood, which is part of the school finance system that requires GCISD to send a portion of its local property-tax revenue to the state. For the 2022-2023 budget year, GCISD has already made a recapture payment of $55,824,791, and the district anticipates an additional settle-up payment of approximately $8.2 million, bringing the total estimated amount of recapture payment this year to over $64 million.

The state has set a maximum Tier 2 M&O tax rate of five cents. Trustees voted to take the opportunity to bring the Tier 2 M&O tax rate from four cents to five cents, or five Golden Pennies, not subject to recapture. One-hundred percent of the funding through this Tier 2 M&O tax rate will remain in GCISD.

“That increased golden penny is to help offset our pay increase for staff,” Braun explained. “With no increase to the basic funding allotment and enrollment slightly declining, the district could also be looking to go to the taxpayers in the future for additional pennies on the M&O side. In GCISD, we are committed to continue providing competitive teacher pay, while consistently looking for ways to remain responsible stewards of your tax dollars.”

Trustees also approved an I&S tax rate of $0.1957, which is less than the 2022 rate of $0.2217. This follows a 10 cent reduction of the I&S tax rate in 2022, and this new rate is now $0.2125 cents less than the tax rate of $0.4082 originally communicated to voters in the 2016 Bond election. Trustees were able to make this reduction based on strong financial management by the District, which includes prepayment and refinancing of bonds. 

The GCISD total tax rate has been reduced by 47.2 cents over the last five years.