KATY, Texas (Covering Katy News) — The Katy Independent School District board of trustees approved tax rates Monday that maintain the district's overall rate of $1.12 per $100 of property valuation for the second consecutive year, contrasting sharply with neighboring Fort Bend ISD's decision to impose a 7-cent one-year tax increase.
The Katy school board set the maintenance and operations rate at 72.71 cents per $100 valuation and the debt service rate at 39 cents per $100 valuation, for a total rate of $1.1171 per $100.
"Our goal is to ensure that every dollar spent continues to support student success while maintaining the financial health of our district," said Katy ISD Board President Lance Redmon.
Fort Bend ISD Uses Hurricane Beryl for Tax Increase
Fort Bend ISD approved a 7-cent property tax increase Sept. 16 using "disaster pennies" — a provision in Texas law that allows school districts to temporarily increase tax rates without voter approval following a declared disaster. The district cited Hurricane Beryl to justify the increase.
Fort Bend ISD's board approved the tax increase due to a projected $34.6 million budget shortfall for the 2025-26 school year.
Fort Bend's new rate of $1.0569 per $100 valuation will be in effect for the 2025-26 school year only and is projected to generate a $7.5 million surplus. While still lower than Katy's rate, the increase could shock Fort Bend residents who will see their tax bills jump $350 annually on a $500,000 home.
Tax Impact Comparison for $500,000 Homes
Despite Fort Bend ISD's controversial use of Hurricane Beryl to justify the one-year tax increase, homeowners in that district still pay less in property taxes than their Katy neighbors.
A $500,000 home in Fort Bend ISD will pay $5,284.50 annually in property taxes at the district's new rate, while the same home in Katy ISD pays $5,585.50. This means Fort Bend homeowners pay about $301 less per year than Katy residents, even after the 7-cent increase added $350 to Fort Bend tax bills.
State Funding to Offset Rising Property Values
Katy ISD Chief Financial Officer Christopher J. Smith said the state is providing additional funding to help offset rising home values that would otherwise increase tax bills. Home valuations are expeced to rise by about 1.54%.
He said a proposed increase in the homestead exemption should also lower tax bills for many homeowners.
Homestead Exemption Increase on November Ballot
The homestead exemption would increase from $100,000 to $140,000 — or $200,000 for seniors and disabled homeowners — as approved by the state Legislature. The measure will appear on the November 2025 ballot.
The approved tax rates take effect immediately and will appear on tax statements this fall.