School board approves tax rate increase
Published 1:19 pm Thursday, September 8, 2016
By Whitney Leggett, email@example.com
The Clark County Board of Education set its 2016-17 tax rate with a 4-1 vote during a special meeting Wednesday night. The board approved a tax levy of 62.2 cents for real property, 62.2 cents for personal property, 55.3 cents for motor vehicles and a 3 percent utility tax. The new rate includes 0.1 cent for recovery of exonerations.
Board Chairman Michael Kuduk cast the dissenting vote.
According to Bob Wagoner of OVEC Financial Services, the total certified value of property in the county for 2016-17 is about $2.92 billion, an increase of 1.08 percent from last year. Wagoner said projected revenue, based on 100 percent collection, is $16.5 million. Of this amount, about $2 million is from new and personal property, he said.
“Unfortunately, the district will not collect 100 percent of real property and personal property taxes due to it,” Wagoner wrote in his discussion of possible tax rates submitted to the board.
He said a more realistic collection rate is about 97 percent, based on the past five years of collection rates.
The new rates are an increase from the 2015-16 rates, which were 60 cents for both personal and real property and 53.5 cents on motor vehicles. Property owners will pay about $22 more per $100,000 of property compared to last year.
Board members opted for the 4 percent increase rate, which allows the district to collect revenue of 4 percent more than the compensating rate. A compensating rate, which would have been 59.9 cents for both real and personal property, would have allowed the district to collect revenue equal to what it collected last year.
Last year’s rates produced revenue of $15.3 million. Wagoner said if the board had opted for a compensating rate, revenue would have been projected at about $15.9 million.
A public hearing is required, but the new tax rate is not subject to recall by a public vote, Wagoner said.
Contact Whitney Leggett at firstname.lastname@example.org.