Property Taxation and Government Revenue: Exploring the Dynamic of Homestead Exemptions and Independent School Districts

Abstract

The development of children is not only critical to Texas, but to the future prosperity of the world community. The purpose of this study is to explore the effect of homestead exemptions on the fiscal health of independent school districts (ISDs) in Texas. In addition, parents depend on the local, state, and federal governments to maintain school districts that are fiscally healthy and stable. The research gathered county property tax and independent school district data for 2007. With this data, forty eight counties were matched by population, average total tax levy, number of school districts per county, and the general fund tax rate. Using scholarly literature, working hypotheses were developed and tested using an independent samples t-test. The preliminary results revealed that homestead exemptions had no effect on the fiscal health of independent school districts in Texas. Data limitations make these finding tentative. The study revealed gaps in the financial data across Texas school districts and counties.