1.Basically, there are only 2 components to the property tax rate. First is the operating tax. It covers the vast majority of expenses charged to the general fund, or as school districts prefer to call it, the operations and maintenance fund. The other component of the tax rate, debt taxes, applies to expenses against the debt service fund or interest and sinking fund, depending on what the taxing entity prefers to call it. Either way, this fund is used to pay the debt service on bonds, certificates of obligations, and other loan instruments. Since voters must approve bonds, there is no cap on the debt tax rate. Quite simply, the rate can be as high as voters are willing to tax themselves. While taxing entities usually have other funds, such as a utility fund, road and bridge fund, economic development fund, etc., property taxes should not be transferred into these funds since they have their own revenue source and should be self-sustaining.