Katy ISD trustees adopt 2025 tax rates; maintenance and operations rate unchanged at 0.7271

The Katy Independent School District Board of Trustees voted 6-0 Monday to adopt the district’s 2025 tax rates: a maintenance and operations (M&O) rate of $0.7271 per $100 of taxable value and a debt-service (interest-and-sinking) rate of $0.39 per $100 for a combined rate of $1.1171.

Finance staff explained the technical meaning of the “effective tax rate” used in Texas tax law: appraisal changes and homestead exemptions can alter the effective rate even when the nominal levy remains unchanged. Staff said the board’s adopted rate is effectively a 1.54% increase under state tax-code calculations because of how taxable values and homestead exemptions interacted this year, while emphasizing that districts’ state funding and local tax compression mechanics affect the district’s net revenue position.

Trustees voted on the drafted order levying the M&O and I&S rates and authorized staff to proceed with tax-rate adoption. The board’s action followed public notice requirements and the recommended order read into the record prior to voting.