THE ENTITIES
There are 4 taxing entities that together contribute to the Property Tax Bill you receive each year for the Wylie ISD Catchment Area
- The four taxing entities for Wylie ISD catchment area are Collin County, Collin College, Your city/Township (City of Wylie, City of Murphy, City of Sachse, St. Paul Township), and Wylie ISD.
- Some properties are in the Extra Territorial Jurisdiction (ETJ) and don’t have City Taxes. Others, like those living in Inspiration, may have up to 3 cities AND a Municipal Utility District (MUD) that are involved in their property tax bill.
- The process by which each entity sets their tax rate is pretty much the same regardless of the entity.
THE STEPS
Step 1 – Estimate of Assessed Values
- The Collin County Central Appraisal District (CCCAD) provides each taxing entity with an estimate in early Spring of where they are projecting that entities Assessed Values for their catchment area.
- Based upon the Estimated Assessed Values, the Wylie ISD Finance Department completed a Tax Rate Calculation Worksheet (Form 50-859) on 5/18/22 for Administration and the School Board that showed what they calculated the Adjusted 2022 taxable value would be for the upcoming budget cycle.
- They also provide the board with a NNR Rate, which is the rate at which the property tax revenue for existing property would stay approximately the same as the previous year and the Voter-Approval Tax Rate, which is the rate which if exceeded would automatically trigger an election for voters to approve the increase.
Step 2 – Budgets Set and Initial Tax Rates Are Set
- After each entity is provided their estimate of Assessed Values, they vote to approve their budget their tax rate for the coming year based on the estimated Assessed Values.
- Wylie ISD School Board Voted to approve both the budget for the coming tax year and their initial tax rate based upon those estimated Assessed Values at their June 13, 2022 Board Meeting.
- Step 3 – Final
Step 3 – Final Assessed Values are released by the CCCAD on July 25, 2022
- The Collin County Central Appraisal District (CCCAD) provided Wylie ISD with their final Assessed Values on 7/25/22.
- For some taxing entities, the final values are higher and for others the final values end up being lower.
- Wylie ISD Finance Department updated their form 80-859, mentioned above in STEP 1, which showed a revised NNR Rate and a revised Voter-Approval Tax rate as their Assessed Values ended up being less than originally estimated.
Step 4 – Vote to finalize the tax rate for the upcoming year
- Each taxing entity now must finalize their tax rate, based on the final Assessed Values, for their constituents by approximately the end of September. Each taxing entity is required to have a public meeting to take public comment about the new tax rate.
- Wylie ISD had this meeting on August 15, 2022 and approved a final tax rate of 1.397900%, which was the Voter Approval Tax Rate – the maximum rate they could levy without having an automatic election for voter approval.
FALLACIES CLARIFIED
- Taxes go up because the Assessed Values go up. NO, the taxes go up because the tax entity voted to increase taxes. It’s simple math, they know the value, agreed to a rate and that gives them the tax dollars.
- Taxes are set by the County. NO, as shown above, this process is the same for each independent taxing entity, including Collin County, Collin College, Every City and Wylie ISD. Each entity is in charge of the rate they levy and that rate is set AFTER they know the values of the property in their area.
- Wylie ISD has lowered their taxes every year. NO, they have lowered the rate but not enough to offset the increase in Assessed Values. That would be the NNR Rate and they have NEVER chosen to utilize the NNR Rate. The below is an example of how lower tax rate against higher AV leads to higher taxes – like Wylie ISD has done every year:
- $100,000 Assessed Value x 1.5% Tax Rate = $1,500 in Property Tax
- $130,000 Assessed Value x 1.4% Tax Rate = $1,820 in Property Tax.