How do school bonds work?

Education bonds are voter-approved funds that can only be used for school facilities. Districts collect this money by taxing property owners on the assessed value of their properties.

Residential, commercial, industrial, and agricultural properties are all taxed. Tax-exempt properties include churches, nonprofits, and government buildings.

Districts sell the bond to investors. The local bond is similar to a loan, much like a home equity line, but for the school district. Each district puts a cap on how much money should be taxed.

School districts have passed many bonds over the years, which is why property owners may see multiple bond-related lines on tax bills. Each line represents a bond they are paying back.

The final number of how much is being paid back for each bond is only an estimate. According to the lawyers at Jones Hall, a law firm that specializes in bond counsel firms, with good financial planning districts can refinance past bonds to pay less over time.