Lamar CISD homeowners will pay a slightly lower property tax rate for the 2026-2027 school year. Trustees also advanced Tesla's proposed $10.1 billion solar manufacturing plant toward state approval.
The board voted 7-0 at its Sept. 15 meeting to adopt a total tax rate of $1.1390 per $100 of taxable assessed valuation, down from $1.1469. Trustees then unanimously approved a resolution to proceed with a taxable value limitation agreement with Tesla under the state's Jobs, Energy, Technology and Innovation (JETI) Act, according to Houston Public Media.
The new rate breaks down to a $0.639 maintenance and operations (M&O) rate and a $0.50 interest and sinking fund (I&S) rate, according to the district's board brief.
Board President Jacci Hotzel said after the vote she hopes the deal marks the start of a lasting relationship between Tesla and the district's students.
What the Tesla deal means for the district
The JETI agreement would limit the taxable value of Tesla's eligible property for M&O purposes during a 10-year period from 2029 to 2038, Community Impact reported. During construction, the taxable value would be $0. The property would remain fully taxable for I&S purposes.
Superintendent Roosevelt Nivens told the board the district would not lose revenue. "I want to make sure that we're clear to say that the state is going to make us whole in our imminent tax rate," Nivens said at the meeting, according to Houston Public Media. "So if we do lose $15 million dollars, the State of Texas is going to give that back to us."
Chief Financial Officer Greg Buchanan said the agreement could generate $335.5 million in I&S revenue through 2063 and add $180.3 million in bond capacity. The Texas Comptroller's office estimates Tesla would receive about $115.2 million in tax benefits over 20 years. With the break, the project would still generate an estimated $153 million in Lamar CISD taxes, compared to $268.3 million without it.
Parents question Tesla tax break at hearing
The board held a public hearing on the JETI application before the vote. Parent Jennifer Rodriguez told trustees the tax limitation would shift the long-term financial burden of infrastructure costs back to homeowners, Community Impact reported.
Another parent, Daniel Saffron, questioned why Tesla needed a tax break at all, telling the board the company has "billions and billions of dollars," according to Houston Public Media.
Tesla has not committed to Fort Bend site
Tesla has not committed to building Project Crystal Sun in Fort Bend County. The company is evaluating the roughly 3,057-acre site near FM 762 and FM 1994 against at least one competing location in another state, according to My Neighborhood News.
If selected, the facility would manufacture photovoltaic solar cells and assembled solar modules. Tesla anticipates investing $10.1 billion between 2026 and 2028 and creating 9,712 full-time jobs by 2033 with a $1.3 billion annual payroll.
The JETI application now moves to the governor's office. The state framework allows up to one year after the comptroller's Aug. 31 recommendation for final approval. The next regular Lamar CISD board meeting is Oct. 20.
