Tax Rate Information

Understanding Tax Rates

Funding for public schools in Texas comes from three main sources: local school district property taxes, state funds and federal funds. The vast majority of funding comes from local property taxes and state funding.  The state establishes the total amount of state and local funding due to school districts under Texas school finance law. These laws limit school districts’ ability to generate revenue locally. 

The combined tax rate for Diboll ISD is actually two separate rates that support two separate funds. These funds have separate functions and specific rules govern how these funds can be spent. These separate tax rates are maintenance and operations (M&O) and interest and sinking (I&S). Every year each tax rate is adopted by the School Board.

M&O Tax Rate

M&O taxes fund the general operations of the District and are subject to the state's funding formula for public education. This is the part of the budget that pays for staff, utilities, supplies, general maintenance of facilities and all the costs associated with running our schools on a daily basis. As schools are a people-intensive business, about 80 percent of these funds go to personnel costs. 

I&S Tax Rate

I&S taxes fund the costs generated by the issuance of school building bonds. Bonds pay for building new facilities, renovations of existing facilities and large infrastructure upgrades.  Diboll ISD must seek the approval of voters to authorize the issuance of bonds. Bond elections don't raise the I&S tax rate, but costs associated with bonds can influence the I&S tax rate.  Although voters have to approve an entire bond program, the bonds are only issued as school projects are needed rather than all at once. Most bonds are issued for 30 years, but the principal amount issued for short term assets, such as technology, are paid off more quickly.

Tax Rate History