The Grapevine-Colleyville ISD Board of Trustees voted Monday, September 29, 2025, to approve a total tax rate of $0.8686 per $100 valuation for 2025, marking the seventh consecutive year of total tax rate reduction in GCISD. The new rate is 5.47 cents less than the total 2024 tax rate.
The total tax rate consists of two separate tax rates: Maintenance and Operations (M&O) and Interest and Sinking (I&S). The approved 2025 M&O tax rate is $0.7122, 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 $0.6322. This is set by the state and is based on July certified property values.
The Tier 2 M&O tax rate is $0.08, and consists of what are referred to as “Golden Pennies” that may not be recaptured by the state through recapture, or “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. One-hundred percent of the funding through this Tier 2 M&O tax rate will remain in GCISD. The maximum number of “Golden Pennies” a district can have is eight. For the 2025-2026 budget year, GCISD is expected to pay $31.8 million in recapture to the state.
Funding received through the M&O tax rate may be used for school district operations, including salaries, utilities, transportation, maintenance, extracurricular activities and other daily operating expenses.
The state, not the district, is responsible for the reduction in the Tier 1 M&O tax rate, a legislative measure that has offered property tax relief over the past several years. Despite this welcome relief for property owners, the district faces ongoing financial challenges because the state's funding for public schools has increased by only less than 1%, while experiencing 20% inflationary costs.
While the district cannot change the Tier 1 M&O rate, it is responsible for continuing to lower the I&S tax rate based on its available fund balance and Board Policy CCA(LOCAL). Funding received through the I&S tax rate, which is the debt service fund, may ONLY be used to pay for voter-approved bonds. Bonds CANNOT be used for school district operations, including salaries, utilities, transportation, maintenance, extracurricular activities and other daily operating expenses.
Recognizing that some taxpayers may wish to further support school operations, a new donation fund has been established to allow contributions directly to the M&O fund. Any donated funds would not be subject to recapture, and 100% of the donation would stay in GCISD. Information about this opportunity, including an online donation form, will be included in the property tax statements distributed in the coming weeks.
Trustees approved an I&S tax rate of $0.1564, which is less than the 2024 rate of $0.1864. This new rate is now 3.93 cents less than the tax rate of $0.1957 originally communicated to voters in the 2024 Bond election. This is projected to reduce property taxes assessed by approximately $17 million over the next two years. Trustees were able to make this reduction in the I&S tax rate based on strong financial management by the District, which includes the recent refinancing of bonds that saved the district an excess of $12 million.
The GCISD total tax rate has been reduced by 20.03 cents over the last seven years. For the average GCISD home valued at $450,000, this latest reduction will save residents approximately $246 on their annual tax bill.