M&O vs I&S: what the two halves of a Texas tax rate mean
Every Texas taxing unit splits its rate into maintenance and operations (M&O), which funds day-to-day costs, and interest and sinking (I&S), which repays voter-approved debt. Only the M&O half is constrained by the state voter-approval rate calculation.
M&O — maintenance and operations
Salaries, utilities, fuel, supplies. This is the portion the state's voter-approval rate calculation limits, which is why a unit facing rising costs often shifts what it can into debt.
I&S — interest and sinking
Debt service on bonds that voters approved. A unit cannot lower this rate below what its bond covenants require, regardless of politics. A high I&S share usually means recent borrowing, and it signals where the rate is likely to stay.
Why the split matters to a buyer
A unit with a low total rate but a high I&S share has less room to fall than one whose rate is mostly M&O. The school district table publishes both halves for every district in the county.
About the advertiser
This site is paid to advertise Alta Homes (Alta Development Group LLC), a homebuilder active in Montgomery County, Texas. Figures on this page come from government records, not from Alta Homes.
Contact Alta Homes Call 1-888-904-7172
Sources
- Texas Comptroller Property Tax Assistance Division — Property Tax Rates and Levies — retrieved 2026-08-04. Adopted rates for tax year 2025. Rates for the following year are adopted between August 15 and September 30 and are not published by PTAD until the following January.
Equal Housing Opportunity. All housing advertised on this site is available without regard to race, color, religion, sex, handicap, familial status, or national origin. School district information is provided as a factual zoning reference only and is not a characterization of any school, district, or community. Verify current attendance zones with the district.