In order to calculate and make available districts’ maximum compressed tax rate (MCR), the agency is conducting a survey of local taxable property value growth through the Foundation School Program (FSP) system in the Texas Education Agency Login (TEAL). The Local Property Value Survey (LPVS) for the 2021-2022 school year opened for data submission on Sunday, July 18, 2021, and will close at midnight on Sunday, August 1, 2021. This survey does NOT apply to charter schools or institutions of higher education.    (19)

Districts will be required to submit the following:

1.  The Chief Appraiser’s July 25 certified taxable property values from the certified appraisal roll under Tax Code, §26.01(a) or (a-1) for tax year 2020;

2.  The Chief Appraiser’s July 25 certified taxable property values from the certified appraisal roll under Tax Code, §26.01(a) or (a-1) for tax year 2021; and

3  The amount of value estimated to be lost due to the Local Option Homestead Exemption (LOHE), if applicable.

Please ensure that your district has completed and submitted the LPVS using the online FSP System by Sunday, August 1, 2021. Completing the survey is important because once the MCR is approved by the agency, districts may adopt their tax year 2021 tax rates in accordance with Tax Code §26.08. A district’s MCR will not be adjusted after approved by the TEA unless an appeal is granted. For more information on tax rate compression, please read the To The Administrator Addressed Correspondence.

Tax Rate and MCR Template Tool

The TEA has posted a new Tax Rate and MCR Template (last modified July 9, 2021) on the TEA State Funding Webpage under the District & Charter Planning Tools subheading, which can help districts understand the calculations behind the tax year 2021 maximum Tier One tax rates. Districts are still required to complete the LPVS to calculate their MCR. Please note that the purpose of this template is limited to assistance only and does not anticipate any tax rate increase that the district may be considering. Legal responsibility to adopt a tax rate in accordance with the law remains with the district, which should consult with its own legal counsel.

MCR Status and Appeals

Once the district has submitted the data to TEA and received approval of the submission through the FSP system, i.e., the district’s LPVS status is “Approved,” the MCR may be considered final unless the district chooses to appeal the calculated rate. Pursuant to Section 48.2552(c) of the Texas Education Code, districts that do not submit their LPVS will receive the state compression rate of 0.9134 as their MCR.

Districts may submit an appeal in compliance with 19 TAC, §61.1000 within 10 days after August 1, 2021. The LPVS must be submitted before the deadline and approved by TEA in order for the district to be eligible for an appeal. Appeals should be submitted electronically to the attention of Leo Lopez on district letterhead, signed by the superintendent, to taxprograms@tea.texas.gov.

Final Determinations

If TEA receives an appeal of a preliminary MCR, a final determination will be issued to the school district no later than August 31, 2021. The summary of finances (SOF) reports will be updated by February 2022 when the TEA receives preliminary state certified property values from the Comptroller’s Property Tax Assistance Division.

FSP System Roles

The TEA recommends that a designated Data Survey User, usually the business manager or CFO, enter the information into the LPVS. The FSP System requires that a designated District Approver, usually the superintendent, submit the LPVS data to the TEA. The FSP System is an application within the Texas Education Agency Login (TEAL). If you already have a TEAL account but do not have access to the FSP System, please apply for access by clicking the My Application Accounts button found in the upper-left corner of the Self-Service menu. In the My Accounts tab, click on Request New Account and select the FSP hyperlink for the Foundation School Program application. Select the Add Access, insert your employing organization (district name/county district number), and select the applicable roles. If you already have access to the FSP System, please check that you have the appropriate role assigned for submitting the data.

If you are not the superintendent or District Approver: Your district’s Service Account Manager must approve all requests for access to the FSP System and modifications to access via the TEAL. (Note that Service Account Manager is a role within the TEAL system. Each employing organization must have at least one employee with a Service Account Manager status.) If you have submitted a request for access or a request to modify access and it has not been granted, please consult with your superintendent or district approver or check with your district’s Service Account Manager to check the status of the request before contacting TEA.

Questions

For more information on the FSP System, including information on applying for specific roles in the system, please see the TEA FSP System web page. For help with accessing the FSP system or submitting the 2021–2022 LPVS, please contact Amy Ma by phone at (512) 463-9737 or email taxprograms@tea.texas.gov.