ACC: A GREAT INVESTMENT
ACC represents a tremendous investment for communities which join as in-district partners. The return on investment from paying a modest tax for the facilities and operations of the ACC District is well-documented by external research.

ACC is building a larger, stronger middle class that benefits all of Central Texas. By enhancing access to higher education and training at an affordable price, the region sees an increase in higher education levels, which brings more desirable business and industry (which relies on a well-trained local workforce), which creates better paying jobs, which helps people earn more and thus expand local consumer spending, and - most importantly - the tax base is enlarged and results in more equitable distribution of local taxes across a larger group of people.

Even if one does not attend ACC, one benefits by ensuring that the community college district is strong across the region. The College is the primary trainer and re-trainer of the local workforce, which helps everyone “do business” throughout Central Texas. ACC is the primary trainer of the local healthcare workers, fire fighters, police, and other “first responders” that all people depend upon for themselves and their families. ACC is the largest provider of transfer students to area four-year colleges and universities, and the College offers, by law, the “access and foundation skills” programs which help transition people from low skills, low-wage jobs and/or public assistance. ACC is the primary gateway to higher education and training for the majority of high school graduates, adults, minority students, and the economically disadvantaged. By building a stronger middle class, everyone benefits from the unique and diverse mission of ACC.

HOW MUCH IS ACC’S TAX RATE?

• $0.09 cents Facilities & Operations tax per $100 assessed property valuation
  Capped at 9 cents and cannot be increased without voter approval
• $0.0046 Retirement of general obligation bonds for facilities bonds
  Less than one-half of one cent
• TOTAL: $0.0946
  (less than one dime, and typically less than 4% of total of all taxes paid)

TAX EXEMPTIONS

ACC Board Policy G-7 governs property tax implementation. Tax Code Section 11.13, Residence Homestead, and Tax Code Section 33.06 provide statutory authorization regarding homestead exemption and option for the elderly/disabled to defer collection of

• Homestead Exemption $5,000 to all taxpayers
• Elderly/Disabled $105,000 Plus the Homestead Exemption
• Deferring/postponing payment of taxes for age 65 or over and the disabled
  Simply file a “tax deferral affidavit” with your appraisal district. The deferral applies to all property taxes levied by all taxing units. Note that this only postpones your tax liability, it does not cancel it. Interest on the sum due accrues at the rate of 8 percent per year. Once you or your surviving spouse no longer own your home or live in it, past taxes and interest become due 181 days later.
• Commercial Property Owners
  Commercial properties are taxed at the same rate as Residential Property (see above); however, per Texas Property Tax Code, commercial properties are taxed on both real property and personal property, while Residential properties are only taxed on real property.

Basically, real property includes land and buildings (i.e. real estate), while personal property includes inventory and equipment used for the production of income. Therefore, commercial properties will receive two tax levies each year: (1) one for real property and (2) one for personal property. Below is an example of the ACC tax impact on a commercial property with $500,000 in taxable real property and $100,000 in taxable personal property.

Property Type	Taxable Value	ACC Tax Rate/$100	ACC Tax Levy	Total
Real	$ 500,000	$ 0.0946	$ 473
	$ 100,000	$ 0.0946	$ 95
				$ 568

ACC TAX REPRESENTS LESS THAN 4% OF THE TYPICAL TOTAL TAX BILL Check out the “Tax Trends” of this web site and note:

• the extremely low ACC tax rate - 9 cents, compared to 15 cents State average for community colleges;
• that in many communities, total taxes assessed have actually declined over the years, or risen very minimally, given the high growth rate in Central Texas populations.

ACC’S REVENUE SOURCES
Community Colleges, by law, are funded differently than public four-year colleges and universities. Community Colleges are expected to have a local tax base to support the construction and operation of facilities. There are three sources of revenue to community colleges:

1. State Reimbursement “Contact Hour” reimbursement for instructional costs. This State contribution has declined as a percentage of budget over the years, which requires either (a) expansion of taxing districts and/or tax rates, (b) increases in tuition, or (c) reductions in instructional programs or services.
2. Tuition and Fees By law, community colleges charge a lower in-district rate for those who contribute taxes to the operation of the college, and a larger out-of-district tuition rate for those who do not.
3. Local Property Tax
• ACC’s tax rate is capped by law at 9 cents per $100 property assessment (the State average is 15 cents for community colleges), and ACC’s tax cap cannot be changed without voter approval.
• The tax cap has been changed only once in the history of the College (2003), because voters recognized the need to expand the College.

COMPARISONS OF FUNDING SOURCES
The following charts illustrate the percentages of ACC’s three funding sources:

	FY10 (Current Tax Rate)	FY06
State Reimbursement	24.4%	29.8%
Tuition and Fees	27.5%	29.8%
Local Tax	44.6%	36.7%
Other	3.5%	3.7%