About School District Tax Rates

Public school taxes involve two figures, which divide the school district budget into "buckets."

The first bucket is the Maintenance & Operations (M&O) budget, which funds daily costs and recurring expenditures such as teacher and staff salaries, supplies, food and utilities. 

The second budget is the Interest & Sinking (I&S) budget, also known as Debt Service, which is used to repay debt for capital improvements approved by voters through bond elections. 

Proceeds from a bond issue can be used for the construction and renovation of facilities, the acquisition of land, and the purchase of capital items such as equipment, technology and transportation. By law, I&S funds cannot be used to pay M&O expenses which means that I&S funds cannot be used to pay teachers or pay for rising costs for utilities and services. 

Krum ISD has a current total tax rate of $1.345 per $100 of property value.

Tax Rate History

The overall tax rate in Krum ISD has not increased since the 2013-2014 school year.

Area District Tax Rates

If the propositions pass, the I&S rate will not increase more than $0.115 cents.

With passage of the proposed $40,000 Homestead Exemption* most homeowners will see an increase of approximately  $20 a year.

*A $40,000 homestead exemption is being presented to voters in the May 2022 election.

➤ Tax Impact 

If the bond election passes, the Board of Trustees will not increase the I&S rate any more than $0.115 cents.

➤ Timing to Issue Bonds

A bond election is not an actual assurance of immediate debt. It is an authorization for the board to sell bonds (obtain debt) as financial capacity becomes available.

If growth of student enrollment does not occur, the bonds are not sold and debt is not accrued.

➤ 65 years & Older

Property taxes for citizens aged 65 or older cannot be affected by school district bond elections as long as a homestead and over 65 exemption are on file with the local appraisal district.

According to state law, the dollar amount of school taxes imposed on the residence homestead of a person 65 years of age or older cannot be increased above the amount paid in the first year after the person turned 65 regardless of changes in tax rate or property value unless improvements are made to the home or property.