Checking the Mile Markers
Our Local Tax Rate
M&O and I&S:
A Two-Lane Highway for Local Funding
The local tax rate is divided into two main parts, each with its own purpose — and its own rules for how the money can be used.
Maintenance & Operations (M&O) is the portion of the budget that funds day-to-day needs. These funds keep the district running — paying for educator salaries, classroom supplies, utilities, and scholar transportation. It’s similar to the part of your personal budget that covers groceries, gas, oil changes and monthly expenses.
The only real way to increase the M&O side of the budget is to improve attendance, increase enrollment or call a Voter-Approval Tax Rate Election.
Interest & Sinking (I&S) is reserved for long-term investments like building schools, renovating facilities, or making major safety improvements. These funds come from bonds approved by voters and can only be used to repay that debt. Think of it like a car loan: the money you borrow to buy your car can’t be used to pay for everyday expenses.
The only way to increase the I&S side to borrow money for larger construction-related capital improvement expenses, is to ask voters to consider a school bond election to incur and pay back debt.
Understanding the Tax Rate Merge
Local funding for AISD comes from property taxes. The Texas Education Agency sets the Maintenance and Operations tax rate, and the Johnson County Appraisal District sets your property values. The AISD Board of Trustees sets the Interest & Sinking Rate.
Every dollar collected through local property taxes goes into one of two funds — each with a very specific job:
- Maintenance & Operations (M&O) Rate – $0.6669 per $100 of assessed property value. These dollars support everyday expenses like salaries, supplies, and services that keep the district running.
- Interest & Sinking (I&S) Rate – $0.50 per $100 of assessed property value. These dollars are dedicated to repaying debt from voter-approved bonds used for construction and major facility improvements.
That adds up to a total tax rate of $1.1669 per $100 of assessed value.
M&O ($0.6669) + I&S ($0.50) = Total Tax Rate ($1.1669)
The information found on this page reflects the AISD 2025-26 budget. The Board of Trustees will approve the 2026-27 budget at the end of August and the tax rate in mid-September. We will update this site with 2026-27 information after approval.
Checking the Rearview Mirror
In the past decade, the AISD tax rate has decreased more than 29 cents. Most of the decrease is due to changes in the state’s tax laws.
