NOTICE OF SPECIAL ELECTION
Piute County School District
Special Election - November 7th, 2017
Public Transparency Meeting - October 26th, 2017 (Piute High School Auditorium 6:00 PM MDT)
Piute County School District is seeking voter authorization to increase the cap of the district’s Voted Local Levy from 0.0004 to 0.0016. The school district is also proposing an equal decrease in the Board Local Levy.
Effect on Property Tax Rates
This proposition would raise the Local Voted Levy by .0012 and lower the Local Board Levy by .0012. Because the voted increase is contingent upon an offset with another school district levy the school district would not be able to raise the total local school board levy without another county wide vote (53A-17a-133(5)(c)). This code prevents a school district from lowering a rate to pass a voted levy increase and then raising the lowered rate in subsequent years without a vote.
Effect on Property Tax Revenue
This proposition requires the statement specified in state code 53A-17a-133(8) that reads "A vote in favor of this tax means that the local school board of [name of the school district] may increase revenue from this property tax without advertising the increase for the next five years.” This statement informs voters that if the Voted Levy is increased to .0016 the school board may choose to leave that rate the same for five years. If the school board chooses to leave the rate the same, the school district could generate more revenue through growth and increased assessed valuations. After five years the school district would have to begin again lowering the rate with increases in assessed valuation.
Effect on School District Revenue
The school district would gain no additional local tax revenue from this change in the 2018 tax year because the combined levies would be the same. The school district would receive an estimated additional $272,242 annually from the state voted levy guarantee program as explained in state code 53A-17a-133(4) and 53A-17a-134(2). If the school board chooses to leave the rate at .0016 in tax years 2019-2022 the school district could also generate additional local revenue through new growth and increased assessed valuations.
Argument In Favor
Because some areas of the state have homes and property with higher values, the school districts in those areas can generate more money per student with lower tax rates. The state has passed legislation to help school districts in low home and property value areas by creating state guarantees on the school district property taxes.
These guarantees ensure that a school district generates a specified amount per student for each increment of property tax on the voted and board levies. Guarantees for the Board Levy are available up to a rate of 0.0004 and for the Voted Levy up to 0.0016. This election proposition will align the school districts tax rates with the state guarantees so as to maximize tax revenue without increasing local taxes.
This proposition will bring much needed additional state revenues to the school district without increasing the tax burden on Piute County residents. Please contact the school district if you have questions or concerns. Vote YES for proposition #6 for Piute County schools!
Piute County School District
Board of Education
No argument against was submitted.
For more information please contact Piute County School District at (435) 577-2912.