- Reconfirm and adopt the 2012 tax levy.
Last month, the board voted down 4-3 an initial recommendation to set the tax rate at $5.19 per $100 equalized assessed valuation, which would have amounted to a loss of $325,314 in property tax revenue to the district.
Instead, board members approved in a 4-3 vote a second recommendation to set the 2012 tax rate at $5.07 per $100 equalized assessed valuation, which is payable in 2013 and is a slight increase from the current tax rate of $5.03 per $100 EAV.
With the district’s equalized assessed valuation expected to decrease 5.42 percent for 2012, which is less than originally anticipated, the district still expects a total loss in tax revenue of $712,577 with the $5.07 per $100 EAV tax rate the school board agreed on at its November meeting.
Although the tax rate is virtually the same as last year’s, homeowners could see a decrease in the amount of tax they will pay to the district due to the lower equalized assessed valuation.
With the district’s equalized assessed valuation projected to decrease by 5.42 percent, a $60,000 home could possibly decrease in value to $56,748, so even with a slight increase in the tax rate from $5.03 per $100 EAV to $5.07 per $100 EAV, the homeowner could see a decrease of about $47 on their tax bill next year.
If the area’s EAV decreases more than the projected 5.42 percent, or the state adds a new multiplier on area property values, the district will only collect tax money based on the actual EAV determined in the spring.
Two years ago, the area experienced a 4.14 percent decrease in equalized assessed valuation, which amounted to a loss of $650,759 in property tax revenue collected by the school district in 2011.
Last year, the area’s EAV declined 5.87 percent, which amounted to a loss of $917,678 in property tax revenue collected by the school district this year.
According to McKiernan, the district has lost $2.3 million in potential property tax revenue since 2008 due to the EAV declining 12 percent over the same time period.