August 29, 2012

School board mulls tax increase

By Suzanne Werre, BHG News Service

With talk of potential property tax breaks dancing in the political winds these days, the Underwood School Board was set to host a public meeting Tuesday night to discuss a proposed  8.57 percent tax increase, which would add about  $90,000 in tax revenue for the school district from the previous year. If the property tax breaks do go into effect, that means  the school will get more revenue from the state, which the school can then pass on as a tax break to its local property owners. “We decreased the mills, but with the increased taxable valuations, it increased the percentage of tax revenue,” clarified Underwood Supt. Brandt Dick.  The school would be going from 123.92 to 119.87 mills, a decrease of four mils, but because of the increase in taxable valuation, it allows the school to see a revenue increase of taxes of 8.6 percent. Supt. Dick said by increasing the taxes, even with the lowered mills, that the school will try to maximize the revenue from the state that it needs moving forward. “The benefit in my mind of looking at this increase is that if the state does property tax like they have done in the past, if they do 50 percent relief, then by having this increase we will get more back from the state and every year forward."

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