I was asked for an interview by the paper on Ganado ISD’s bond proposal and how it would affect homeowners. Given the intricate components of school districts calculation of property taxes, I wanted to be sure I covered all moving parts, so I composed this article.
How the Proposed GISD Bond Would Affect Homestead and Overage‑Exempt Homeowners Ganado ISD voters will soon decide on Bond Propositions A and B, and many residents— especially seniors—are probably questioning how the measures would affect their school property taxes. From a tax assessor’s perspective, the answer depends heavily on whether a homeowner receives a homestead exemption, an over‑65 exemption, or both.
Understanding GISD’s Use of Defeasance
For several years, Ganado ISD has maintained a steady debt service tax rate of $0.3163 by using a financial tool known as defeasance. As explained in the district’s materials, defeasance allows a school district to retire bond debt early by using surplus cash to purchase government securities that cover future payments. This removes debt from the books and stabilizes tax rates.
Because GISD has used defeasance consistently, the district can apply part of its existing debt capacity toward the proposed bond package— effectively covering about half of the total bond amount without raising the debt rate beyond what voters approve.
Estimated Tax Impact for Non‑Senior Homeowners GISD Superintendent Dr. Szymanski has provided estimated monthly tax impacts for typical home values:
• $150,000 home: $1.53 per month
• $175,000 home: $5.35 per month
• $200,000 home: $9.18 per month These figures depend on the bond’s term, interest rate, and annual principal and interest schedule—information held by the district.
How the Bond Affects Homeowners Over 65
For homeowners aged 65 and older who have both a homestead and an over‑65 exemption, the impact is far simpler: their school taxes will not increase if the bond passes.
Texas law freezes school taxes for qualifying seniors once they apply for the over‑65 exemption. The freeze is retroactive to January 1 of the year they turn 65. The only time the freeze can change is when the homeowner makes improvements or additions to the property, which triggers a recalculation.
Even if GISD’s tax rate rises due to the bond, seniors’ school taxes remain frozen at their existing amount.
Recent Statewide Tax Changes Lowered Many Seniors’ Bills to Zero After the 2023 legislative session, statewide tax compression and increased exemptions significantly reduced school tax burdens. Many seniors now pay zero school taxes.
Additionally, voters approved raising the homestead exemption to $140,000 and the senior exemption to $200,000, further reducing taxable value for both groups.
Future Legislative Proposals Could Reduce Taxes Even More
Two major proposals are already being discussed for the 2025– 2026 legislative cycle:
• Lt. Governor Dan Patrick proposes lowering the senior exemption age from 65 to 55 and increasing the homestead exemption by another $40,000.
• Governor Greg Abbott proposes a constitutional amendment to eliminate school property taxes for homeowners entirely, funded by state surpluses, along with a 3% cap on appraisal increases.
Bottom Line for Senior Homeowners
If you are 65 or older, have a homestead exemption, and an over‑65 exemption, then: Your school taxes will not increase if the GISD bond passes.
They may even decrease if statewide tax rates are compressed again.
Bottom Line for All Other Homeowners
Non‑senior homeowners may see a modest increase in their school tax bill, depending on their home value and the final structure of the bond. GISD’s published estimates provide a general idea, but exact impacts depend on bond
