REASSESSMENT'S IMPACT ON SCHOOL TAX; CHANGES WOULD VARY ACROSS CITY

~Correction: GRAPHICS -- ESTIMATED PROPERTY TAX INCREASES IF BOTH MEASURES PASS

On April 1, Cape Girardeau school voters will decide two funding issues for the city's public school district. Voters may be asking, "What's it going to cost me?"

Unfortunately, the answer isn't easy to calculate because of a process under way called reassessment.

The district is asking first for permission to sell up to $14 million in bonds to fund new construction and renovations. Second, the district is asking voters to waive the Proposition C rollback.

Reassessment has two major impacts on the school tax issues. First, reassessment is changing property values throughout the county. School taxes are levied based on property values. Values in most neighborhoods in Cape Girardeau are going up.

Second, a major overall increase in reassessment will trigger a rollback in the tax levy. Taxing entities including the school district must rollback their tax levies to avoid a reassessment windfall.

Regardless of what happens at the polls April 1, school and county officials say the school tax levy will be rolled back at least 35 cents. The reassessment rollback is permanent.

But Superintendent Dan Tallent hopes voters will consider the rollback when deciding how to cast their ballots.

The district's current levy is $2.88 per $100 assessed valuation.

The school district is asking to levy 30 cents to pay off the $14 million in bonds and to collect an additional 39 cents from the waiver of the Proposition C rollback.

Without factoring in a reassessment rollback, the levy would have increased to $3.57 if the April ballot measures passed.

But after the reassessment rollback, the levy would be $3.22 per $100, a net increase of 34 cents.

Although the increase would be less than the school board originally calculated, the amount of money it would generate would be the same since the lower tax rate would be charged against higher property values.

Adding to the confusion is the fact that not all property values are changing at the same rate.

Some property values will go up. Others could see a slight decrease or no change at all.

Notices informing voters of the value of their property, and hence the amount they pay in taxes, will be sent out in mid-April by the county assessor's office. But the school issue will already be decided before the notices are received.

The challenge facing school officials has been trying to explain the impact of reassessment in relation to the ballot proposals.

For example, two people each own a home valued at $50,000. After reassessment, both will pay the same amount in property taxes, but because of reassessment, one homeowner could experience a bigger increase in those taxes.

If voters say yes April 1, the assessor's office calculates that a $50,000 house in the East Rodney neighborhood of Clippard Elementary School would experience a tax increase of $86. A $50,000 house in the Montgomery Brinks neighborhood of Jefferson Elementary School would experience a tax increase of $89.

A $113,000 house in the Alma Schrader Elementary School neighborhood of Woodland Hills would experience a tax increase of $203, while a $111,000 house in the Franklin neighborhood of Sunset would experience an increase of $130.

The differences point out the reason for reassessment. Homes of the same value across the county aren't assessed at the same value.

Through reassessment, the county assessor's office periodically updates the values of homes to more closely match the market value.

Cape Girardeau County has not conducted a major reassessment since 1985. Property statewide was reassessed that year to create greater equity among property owners.

Prior to that change, properties were assessed at different rates based on a number of factors. Under the old system, two parcels with identical market values might have had significantly different tax values.

Periodic reassessment updates are needed to ensure equity for property owners. Values change over time and assessments haven't kept up.

ESTIMATED PROPERTY TAX INCREASES IF BOTH MEASURES PASS

Alma Schrader

-- Suburban Heights, $70,000, $135

-- Woodland Hills, $113,000, $203

-- Woodhollow/Saddleridge, $375,000, $510

Clippard

-- East Rodney/Charles, $50,000, $86

-- Westfield Subdivision, $87,000, $150

-- Keystone/Summit Estates, $350,000, $513

Franklin

-- South Henderson/Hanover, $25,000, $39

-- Sunset Area, $111,000, $130

Jefferson

-- Jefferson/Cousin/South Park, $37,000, $50

-- Montgomery Brinks, $50,000, $89

-- White Oaks Estates, $305,000, $409

May Greene

-- South May Green School, $17,000, $15

-- South Sprigg/South Pacific, $25,000, $35

-- South Spanish, $140,000, $228

Washington

-- Red Star/Water/First, $12,000, $16

-- North/Bellevue near SEMO, $162,000, $243

-- Sylvan Lane, $230,000, $260

The information was provided by the county assessor's office.