A strong community college presence benefits the entire community by training the majority of health care workers, first responders and law enforcement officers, providing an avenue for lifelong learning, and ensuring a more highly educated workforce. As education levels rise, people typically earn more and thus contribute more to local tax bases and the local economy, thereby helping local businesses thrive and lowering social services costs.

The return on investment in higher education significantly outweighs the cost. A recent study by the Texas state comptroller shows that for every tax dollar invested in community colleges there is a $5.50 return on investment to the local community in increased earnings, increased tax base, and increased spending.*

ACC, its employees, and students generate more than $650 million each year for the local economy, and the college saves the community more than $15 million annually by reducing the need for social services.**

ACC District Tax Facts:
Community colleges in Texas depend on three primary sources of revenue. Local property taxes fund maintenance, operation, and construction of community college campuses. Student tuition and fees and state appropriations offset the costs of instruction. As state funding has decreased over the years, local taxpayers and students have assumed a greater percentage of the college’s funding formula.

ACC Board of Trustee Policy G-7 governs property tax rates.

ACC’s maintenance and operations tax rate is capped at 9 cents per $100 valuation and the maximum rate cannot be changed without voter approval.

ACC’s maintenance and operations tax rate is 9 cents per $100 valuation, with nearly a 1-cent tax for facilities bonds, resulting in a total tax rate of just under 10 cents per $100 valuation. ACC’s tax rate is far less than the community college state average of nearly 15 cents, and ACC’s tax bill is generally less than 4 percent of the total paid to all taxing entities. 

ACC’s tax rate has changed only once in the college’s history – in 2003 when voters increased the rate cap from 5 cents to 9 cents per $100 valuation. ACC chose to implement a 2-cent increase in fiscal year 2004 and 1-cent increases in 2005 and 2006.

Currently, the ACC District provides a $5,000 Homestead Exemption to all taxpayers, and an additional $75,000 exemption for the elderly or disabled under Tax Code Section 11.13, Residence Homestead. The ACC District’s exemption level is the highest among local taxing entities.

Existing Texas tax law – Tax Code Section 33.06 -- provides an option for the elderly and disabled to defer collection of taxes on a residence homestead.

If you are a homeowner aged 65 or older, or disabled, you may “defer” or postpone paying any property taxes on your home for as long as you own and live in it. To postpone your tax payments, file a “tax deferral affidavit” with your appraisal district. The deferral applies to all property taxes levied by taxing units.

A tax deferral, however, only postpones your tax liability. It doesn't’t cancel it. Interest on the sum due accrues at the rate of 8 percent a 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.

More information about the deferred collection exemption is available at the Texas Comptroller of Public Accounts' website (new window)

General information about property taxpayers rights, remedies, and responsibilities (new window)

* “The Impact of the State Higher Education System on the Texas Economy,” Texas State Comptroller of Public Accounts, February 2005
** “The Socioeconomic Benefits Generated by 50 Community College Districts in Texas,” CC Benefits Inc., 2002