THE VALUE OF LAND

Here's something to think about - every single inch of the land in KatyISD has a value - all 181 square miles of it. Some, those developed with homes or businesses, have a greater TAXING value that an open field - but the ALL have a value and the owners pay taxes to the district.

Those taxes are ALL the same - one rate per $100 valuation for O&M and one for Bond Debt. Every single owner pays the same amount based on that $100 valuation, meaning an empty lot owned will pay less to the district than an owner of a $500k home - but the same rate applies to every $100 in value.

Now, as farm land turns into lots for home, the value increases - more tax revenue. For example, an acre of farm land might be worth $3k, when it becomes a lot it goes to $20k and when a home is built on it, it might go to $200k. Every step of the way the same tax RATE is applied but the REVENUE to the district increases because the VALUE of the property has increased.

Stay with me because this is THE POINT. From this point forward, as farm land is opened up and developed, the districts revenue cannot go down to the point of it's original valuation which was of just a piece of dirt - well, short of a nuclear bomb wiping us all out and turning everything into dust.

SOMEONE WILL ALWAYS OWN THIS LAND.

SOMEONE WILL ALWAYS BE REQUIRED TO PAY THE TAX ON IT. 

Thanks to a conversation with Terry Huckaby. I never thought about it in that way.