The No New Revenue Tax Rate (NNR Rate) is a rate that each taxing entity is required to calculate as part of their Tax Rate Calculation Worksheet – Form 50- 859 (for school districts)
- AFTER each taxing entity is provided their Estimated Assessed Values from the Collin County Central Appraisal District (CCCAD), They are must complete form 50-859(for schools), which provides an estimate of that taxing entities Adjusted Taxable Values they will use in finalizing their budget and setting their tax rate for the coming year.
- Line 25 of this form is where the NNR Tax Rate is shown on the form. This form also shows the Voter-Approval Tax Rate on line 44. Both rates are shown on the final page just above the name of the individual preparing the form as well as the applicable date.
- The initial form 50-859 for Wylie ISD was created by the Finance Department on 5/18/2022 and can be found HERE.
- The final form 50-859 for Wylie ISD was created by the Finance Department on 8/1/2022 and can be found HERE.
What is the NNR Rate?
- The NNR Rate is the tax rate at which, when applied against Assessed Values, will yield approximately the same tax revenue as the previous year for existing commercial and residential property.
- The NNR Rate does not include tax revenue that would be generated from NEW construction of both commercial and residential properties.
- The estimate for the amount of new tax revenue due to the taxing entity.
- In 2021-2022, this amounted to approximately $4,397,544 in new revenue and would be expected to be about the same for the 2022-2023 tax year.
Fallacies
- No taxing entity can do a NNR Rate. FALSE! Both Collin County and the City of Wylie have voted to approve a No New Revenue Tax Rate for the past 6 and 5 years, respectively.
- If Wylie ISD approves a NNR Rate, they will lose about $13M dollars. FALSE! It’s not a loss when you don’t TAKE more than you should from tax-payers. This mindset is at the core of the misguided thinking of Wylie ISD Administration and School Board. They forget that this is not their money!
- We have already shown that they had over $8.8M in excess revenue in the 2021-22 budget cycle and that they could expect to receive about $4.4M in tax revenue from new construction, which is almost $13.2M. The difference between revenue generated at the NNR Rate and the Voter Approval Rate they approved is about $11.387,920.