Tax Realty Consultant

The current 7.9 mills of emergency property tax operating levy generate about $9.7 million annually. This money can only be used for operation expenses. This levy is due to expire in December 2008 with the last collections occurring during calendar year 2009. This option requires renewal every four to five years and does not allow for inflation. Therefore, projections for inflation must be factored in ahead of time, often increasing the size of the levy request. While this method is very familiar to our voters, it is not the most practical option.

The more practical option is the income/tax levy. There are two types of income/tax levies; a traditional based income tax and the alternative based income tax. The main difference between the two is the alternative tax excludes most sources of income that are not earned such as pensions, social security, capital gain, dividend income, IRA income, etc. It is the alternative based tax levy that has been recommended for voter consideration.

The alternative based income tax levy will generate approximately $11.5 million per year. This is comparable to an 8.28-mill property tax - slightly more than the current levy. This income tax levy is continuous, which means it appears less likely that the district would have to return to the voters for more money. It will adjust as salaries adjust. The income tax dollars can be used for operating and building expenses, making it easier for the district to manage the budget.