Tax Information

Melissa ISD wants to be transparent with public funds.

Learn more about the district’s tax configuration.

Melissa ISD has determined that the proposed bond will not result in a tax rate increase. The district will maintain the Interest and Sinking (I&S) tax rate at its current level of $0.50 per $100 of property valuation.

School Finance 101

How is Melissa ISD’s tax rate configured?

A school district’s tax rate is comprised of two components: the Maintenance & Operations tax (M&O) and the Interest & Sinking tax (I&S). Bond sales only affect the I&S rate.

What is M&O and I&S?

Maintenance and Operation (M&O) funds are primarily used for the ongoing operational needs of the district. These funds ensure that the schools can function on a day-to-day basis. They include:

  • Utilities

  • Supplies

  • Salaries

Interest and Sinking (I&S) funds are used for paying off debt incurred by the school district, typically for:

  • Construction of new school buildings

  • Renovation or major repairs of existing facilities

  • Purchase of large equipment or other capital investments

Why will my ballot read “THIS IS A PROPERTY TAX INCREASE”?

Texas legislature passed laws in 2019 requiring all school bond elections to include the following language on the ballot: “THIS IS A PROPERTY TAX INCREASE”. The state mandates all bond ballots to include this language regardless of the tax rate set by the district. Passage of the bond will NOT impact your school district tax rate.