Nell Holcomb School Board to consider raising property tax rate

The Nell Holcomb School Board will consider raising the tax rate by 4.2 percent at a 6 p.m. meeting today.

The proposal from district officials would increase the operating levy from $3.08 to $3.21 per $100 of assessed valuation. A resident with a home valued at $100,000 would pay $609.90 in district taxes this year, a $24.70 increase over last year.

Assessed valuation of personal property decreased about $1.6 million from last year, possibly because some people aren't purchasing new cars with a shaky economy or because some business owners are cutting back on equipment purchases.

The rate increase would bring in an additional $129,000 for the district, mainly because the Nordenia plant in the district is now fully on the tax rolls. The district will bring in $1.5 million if the tax increase is approved. If the tax rate remains unchanged, the district would still see nearly $69,000 in new revenue.

Superintendent Darryl Pannier defended the tax rate increase, adding that "our tax rate, in Cape County, is the lowest of any of the schools."

The district may be able to roll back its levy next year when manufacturer Nordenia is counted as existing construction, Pannier said. Nordenia paid off a tax-increment financing arrangement early, meaning more of the facility's tax money will now be directed to schools. New construction is excluded from laws governing the setting of tax rates.