Lone Star College System (LSCS) trustees unanimously approved a lower property tax rate Thursday, Oct. 1, and directed $60 million toward early bond-debt payoff.

The adopted rate of $0.1058 per $100 valuation is $0.0002 below the fiscal 2025-26 rate of $0.1060, according to Woodlands Online. The rate is expected to generate about $356 million in tax revenue for fiscal year 2026-27, Community Impact reported.

For Spring-area homeowners in the Harris Central Appraisal District, the lower rate could mean a slight drop in the LSCS portion of their annual tax bill. Homeowners in the Montgomery Central Appraisal District and San Jacinto County Appraisal District may see higher bills, though, because median property values rose year over year.

The rate breaks down to $0.0839 for maintenance and operations (M&O) and $0.0219 for interest and sinking (I&S), the debt-service portion. LSCS's taxpayer information page notes that the M&O rate will effectively raise maintenance-and-operations taxes by 7.98% under state calculations, adding about $5.40 per year on a $100,000 home.

The $60 million early payment is projected to shrink LSCS's outstanding general obligation bond debt from roughly $404 million to $311 million. Kristy Vienne, LSCS vice chancellor of finance and administration, said the strategy would save taxpayers an estimated $32 million over the long term.

"This I&S tax rate will reduce our total outstanding debt from approximately $404 million to $311 million, putting Lone Star College System at one of its lowest debt levels in recent history," Vienne said.

The college system's long-term goal is to retire all bond debt by 2030 or 2031. In October 2025, LSCS lowered its rate from $0.1076 to $0.1060 and paid down $30 million early, according to a college news release. The system's rate remains well below the statewide average of $0.1606 among Texas community college districts.

S&P Global Ratings reaffirmed LSCS's AAA bond rating with a stable outlook in May 2026, citing strong financial management and a tax base that grew from $279 billion in 2023 to $403 billion in 2026, according to a college announcement.

The tax rate funds a $577.5 million balanced budget the board approved Aug. 6. That budget includes 2% raises for full-time and part-time employees and holds in-district tuition steady at $111 per credit hour, unchanged since 2024-25.

The LSCS Board of Trustees meets the first Thursday of each month. Harris County and Montgomery County tax offices collect property taxes on behalf of the college system.