MIDWAY, Texas — The Midway Independent School District Board of Trustees has approved a record reduction to its Maintenance and Operation tax rate and is now calling for a tax rate election for voters to approve the new changes.
The district announced on Thursday, Aug. 17 that the Board had greenlit an 18.5-cent drop in the M&O tax rate. Midway ISD said the 2023 tax rate incorporates the largest reduction in the district's history, while also accomplishing state-mandated tax compression and involving voter voice in pursuit of $3.75 million of new revenue.
Midway ISD said they are poised to cut the Interest and Sinking (I&S) tax rate by three cents, which will then allow them to access three cents on the M&O side, which is used primarily for salaries, without raising the overall tax rate.
The change will still need to be approved by voters before the district can access the three cents.
The multi-step action comes after in-depth discussion and careful financial analysis by the Board of Trustees, said the district. Their review reportedly included examining the district's financial stability, educational funding and community priorities.
Midway ISD said they acknowledged the importance of lightening the tax load for residents as the Board unanimously approved the tax change, which they say will result in new revenue for the district and a "historic" tax rate decrease.
"Midway’s 2022 total tax rate of $1.12 was already at a 20-year low, but we're excited to announce this further historic tax rate reduction enabled by state tax compression," said Board of Trustees President Pete Rusek. "All of our taxpayers will directly benefit from this rate reduction, and for many experiencing financial stress, we hope it will provide some relief. This helps us make decisions to prioritize educational goals and ensure our district's financial health without burdening taxpayers.”
The final step in the process will require a voter-approval tax rate election for the new M&O rate. An election will reportedly be held in November for the community to vote on the changes.
For more information about the tax rate reduction and the upcoming tax rate election, visit the official Midway ISD website at www.midwayisd.org/taxes.
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