INDIAN RIVER COUNTY — Property owners in Indian River County could expect to see a slightly higher tax rate from the School District for the upcoming fiscal year, but their tax bill – at least for schools – is expected to decrease. The tax rate will help generate revenue to cover the School District’s preliminary $282.35 million budget, which the School Board first reviewed Tuesday.
Assistant Superintendent of Finance and Operations Carter Morrison explained to the School Board that the state is requiring the district to increase its “required local effort” of its property tax by 0.21 mills – or 21 cents per $1,000 of tax assessed value on property.
The School District is also increasing the debt service millage by 0.05 mills, for a total millage increase of 0.26 mills.
Despite the increase in millage of what amounts to 26 cents per $1,000 tax assessed value, Morrison told the School Board that most property owners would actually pay less in property taxes than they paid last year to the School District.
That’s because property values are expected to decrease by about 5 percent, he said.
Based on a tax assessed value home of $200,000 with a $25,000 homestead exemption – and no decrease in value from last year – the property owner could have paid an extra $45.50 in taxes to the School District.
Based on the same assumptions and factoring in the 5 percent tax value decrease, the same property owner could expect to pay nearly $41 less than the year before.
As for the budget, the School Board is looking at a decrease from last year of nearly $26.5 million. Last year’s budget – for fiscal year 2011-12 – was almost $309 million.
The budget and tax discussion briefly touched on the upcoming millage referendum that will be put to voters in August. Voters will be asked whether they would support continuing to fund 0.60-mills in taxes to the School District.
The 0.60-mills would replace two other taxes voters had approved in 1990 – with a bond referendum – and in 2010, with the critical operating needs millage referendum.
Though the School District maintains that the question being put to voters during the Aug. 14 Primary Election is a “continuation” of tax and not an increase, taxpayers could see their tax bill go down that much more if the 0.60-mills were to retire as scheduled.
How the School District’s budget would be impacted if voters vote down the referendum in August has yet to be determined, though School Board members said Tuesday that they would have to make tough decisions to re-prioritize the district’s needs.