Park Hill Studying Tax Levy
With changes looming in the state’s Hancock Amendment, the Park Hill Board of Education drilled down on the numbers at last Thursday’s meeting of the Board of Education.
The Hancock Amendment, named for former Republican Missouri Congressman Mel Hancock, requires that property tax levies be adjusted down as the assessed value of property rises so the actual taxes paid by the property owner do not change as values change.
Senate Bill 711, sponsored by Senate leader Mike Gibbons (R-Kirkwood), requires all taxing jurisdictions, regardless of whether they are operating at or below their tax rate ceiling, to roll back their tax rate to counter reassessment increases. Under current law, only taxing jurisdictions operating at their tax rate ceiling are required by Missouri’s Constitution to roll back to protect taxpayers, leaving taxing entities operating below their ceiling to approve undisclosed tax increases with no legal recourse available for taxpayers.
The law will prevent the district from ever collecting the entire voter-approved tax levy if the Board does not recapture the 3.6-cent portion of the tax levy it voluntarily rolled back last year. In response, Assistant Superintendent Dr. Paul Kelly proposed reducing the debt service portion of the levy, so the district could recapture those funds without having to raise the tax levy. This would keep the total levy at $5.3029 - less than most other area districts.
Specifically, Park Hill’s Board approved levy in 2007-2008 ranked 8th highest of the following 12 school districts: Blue Springs R-IV, Center 58, Fort Osage R-I, Grandview C-4, Hickman Mills C-1, Independence 30, Lee’s Summit R-VII, Liberty 53, North Kansas City 74, Park Hill, Platte Co. R-III, and Raytown C-2. Park Hill also rolled the levy back $0.30 in 2007-2008.
The debt service levy can only be used to pay off the district’s bond debts. Park Hill’s debt service tax levy has been $0.6562 for the past seven years. Dr. Kelly said the debt service fund balance is stable, so the Board can lower it and still have future bond issues with no tax increase.
During the last weeks of July, The Platte County Board of Equalization concluded their work during the last weeks of July and the Platte County Assessor and Clerk are now working to certify the district’s assessed valuation. Also, the Missouri State Auditor will review tax levy estimates prior to the Board of Education action on August 28.
According to recent numbers, the Park Hill School District has more than $9 million in reserved and a $114.5 million operating budget.