Community colleges are funded differently than public four-year colleges and universities. There are three primary sources of revenue to community colleges:
- Student tuition & fees
- State funding
- Property taxes
Community colleges are the only public institutions of higher education that construct and maintain campus facilities without state funding assistance. Local community colleges have taxing authority for this purpose.
In-District Property Taxes
ACC operated for 14 years without a tax base. In 1986, ACC District voters approved the establishment of a maintenance and operations (M&O) tax capped at 5 cents per $100 valuation, in exchange for comprehensive programs and services. Voters raised that cap to 9 cents in 2003.
ACC has the largest tax base in Central Texas, enabling every cent to go further. The 2016-17 total tax rate is $0.1020 (10.2 cents) per $100 assessed property value. In comparison, the average Texas community college tax rate is $0.175 (17.5 cents) per $100 assessed property value.
- The property tax rate for maintenance and operations (M&O) is capped at $0.09 (9 cents) per $100 assessed property value. It cannot go above $0.09 without voter approval.
- There currently is a $0.0120 rate for retirement of general obligation bonds for facilities.
Recent Tax Rate History
- 2016-17: $0.1020
- 2015-16: $0.1005
- 2014-15: $0.0942
- 2013-14: $0.0949
- 2012-13 $0.0951
Property Tax Exemptions
ACC Board Policy G-6 governs property tax implementation. Tax Code Section 11.13, Residence Homestead, and Tax Code Section 33.06 provide statutory authorization regarding homestead exemption and the option to defer collection of taxes for senior citizens and residents with disabilities.
- Homestead exemption: ACC provides a $5,000 homestead exemption to all residential taxpayers (or 1% of property value, whichever is greater)
- Exemption for seniors (65+) and homeowners with disabilities: The College also provides a $145,000 exemption for senior taxpayers and homeowners with disabilities, for a total exemption of $150,000 for those taxpayers. This is an increase of $10,000 over last year's exemption to offset the impact of increased property appraisals and is the most generous exemption policy in the region.
- Deferring/postponing payment of taxes for seniors and homeowners with disabilities: 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.
- Commercial property owners: Commercial properties are taxed at the same rate as residential property; 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.
Tax Implications for ACC District Homeowners and Businesses - 2016-2017
|Property Value||Regular Homestead||Senior/Disabled Exemption||Commercial|
|NO ACC TAX||$51.00 Annual
|NO ACC TAX||$102.00 Annual
|NO ACC TAX||$153.00 Annual
Updated September 2016