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Midway ISD projects 0.9089 total tax rate for 2026; commercial growth cushions homeowner share
Summary
Finance director told trustees taxable values rose 7.3% driven by commercial development; projected tax compression would lower homeowner burdens while Senate Bill 1453 changes require 60% approval if I&S collections exceed minimum debt service.
Wesley Brooks, Midway ISD’s finance director, told trustees the district’s certified net taxable value grew about 7.3% for 2026, driven largely by new and expanded commercial property. Brooks said commercial values now represent about 62% of the district’s tax base and pointed to a newly assessed packaging plant that added significant taxable value.
Brooks projected a combined 2026 tax rate of 0.9089 and explained how M&O compression works: as local values grow relative to the statewide average, mandatory compression lowers the local M&O tier‑1 rate, reducing the homeowner share of taxes even as district entitlement remains intact. “At 7%, our tier 1 tax rate is gonna be 0.5889, so about a 3¢ decrease from last year,” Brooks said in the presentation.
He also briefed the board on Senate Bill 1453, which took effect earlier this year and requires a 60% board approval threshold if an I&S rate is adopted that generates funding above the minimum debt‑service amount. Brooks said the district will disclose the portion of any tax rate that would be used to defease outstanding bonds and how the board could vote in August on a rate that meets minimum debt service or elect to keep the I&S at 24 cents to pay down debt faster, subject to the 60% threshold.
Trustees asked about the district’s heavy commercial concentration and the potential volatility if one of the top taxpayers changes operations or valuation. Dr. Allen noted the commercial mix provides homeowner relief but increases sensitivity to shifts in large taxpayers’ valuations.
During discussion, Dr. Allen offered a candid remark about past ballot messaging on bonds, noting how homeowners’ actual bills differ from campaign claims: “We they did lie. They didn't stay the same. They're gonna pay less,” he said, clarifying the board’s interest in transparent communication as August approaches for formal tax‑rate action.
Administration said updated certified values would be finalized and brought back in August for formal adoption of the 2026 tax rate.
