State law requires a substantial school tax increase on Crittenden County property owners despite voters’ overwhelming rejection last week of a higher levy to build a new high school. An additional 1.9-cent tax per $100 valuation will appear on 2017 tax bills mailed out this month.
County voters recently rejected the board of education’s “recallable nickel” tax increase to build a new high school and move middle-schoolers out of a 68-year-old building fraught with problems. The measure was defeated 1,485-649 and rolled back what would have been a 5.9-cent increase on school property taxes.
But in the event of a failed referendum, Kentucky law – specifically KRS 132.017 – requires a board of education adopt a tax rate that will generate 4 percent more revenue than in the previous year tax year. In this case, the 2017 real property levy will jump to 48.2 cents per $100 valuation from 46.3 cents in 2016. For the average homeowner in the county – based on the median home value of $76,000 – this will be an additional $14.50 in property taxes to the school district’s general fund.
In a news release issued by the school district this week, Superintendent of Schools Vince Clark explained that the 4 percent revenue increase through the 1.9 cent tax bump is not a decision made by the school board, but rather one that occurs automatically by statute.
“As to why they mandate the 4 percent rate?,” Clark speculated. “I’m guessing that Frankfort expects each (board of education) to take the maximum each September to lessen the burden on state officials.”
Had the nickel tax been approved last week, the 5.9-cent increase would have amounted to almost $45 more annually for the typical homeowner. However, with the state-mandated 1.9-cent bump, there is no matching money from the state and the additional revenue is not restricted to school construction like the nickel tax would have been.
The nickel tax would have generated an additional $3.4 million in bonding (borrowing) potential for the local school district matched by $3.1 million from the state if lawmakers approved the grant in the General Assembly next year. Actual additional revenue would have been about $229,000 annually, of which 100 percent would have been dedicated to funding construction. Now, the mandated 4 percent revenue increase will generate roughly $75,000 in additional revenue for the district, which can be spent as any general funds can.
Clark said careful consideration will be given to that spending.
“The (board of education) will be discussing the best use of these additional tax dollars and investing them for the benefit of our students and the future of our community,” Clark said.
The school district will owe the county $20,695 – per County Clerk Carolyn Byford’s office – to pay for the special election.
