Residents of the Smyrna School District who live in Kent County will likely see a 7.9 percent increase in their school tax this year, while those in New Castle County are looking at a 9.5 percent hike.
The increase, which would be approximately $50 for the average homeowner in the school district, was proposed by District Finance Director Jerry Gallagher at the June 18 Smyrna School Board meeting. The board is expected to vote on the rate at a special meeting July 7.
The school district has the power to raise taxes for certain portions of its budget. The proposed increase is due primarily to the taxpayer-approved March 2007 referendum for renovations and additions to Smyrna High School, which will begin this summer, and the construction of a new intermediate school in Clayton.
If the tax rates are approved July 7, Gallagher expects the school district will collect $1.4 million for the repayment of construction debts. The district expects to pay $1.6 million in the upcoming year for debt service.
“It should be noted that payments will exceed tax collections,” Gallagher said.
The difference will come from interest generated from funds currently in the account as well as local impact fees charged any time a new home is constructed in the district.
“The funds we’ve received from impact fees will really help,” Gallagher said at the June 18 Smyrna School Board meeting.
Gallagher said the district has received $1 million from impact fees since the fees were established about a year ago, and the money is being applied directly to reduce taxes.
“That’s a million dollars we don’t have to raise,” Gallagher said.
Under the proposal, taxpayers in Kent County will be billed $1.1967 per hundred dollars of assessed value, and taxpayers in New Castle County will pay $1.1803 per hundred dollars of assessed value. Currently, the rates are $1.109 in Kent and $1.078 in New Castle.
The new rate would mean the school tax bill for home with an assessed value of $50,000 (which translates to a market value of approximately $230,000) would be $598.35 in Kent County and $590.15 in New Castle County.
Although the rates in each county are different, the taxes are comparable because the two counties assess value differently.
“Every year, we go through these exercises to homes in each county pay the same amount in taxes,” Gallagher said.
The board will vote on the proposal at a special meeting at 7 p.m. July 7 at the central office building on South Main Street. The rate must be approved by July 10.
To calculate your school tax
To calculate how much your school taxes would be with the proposed increase, multiply the assessed value of your house by 0.011967 if you live in Kent County or 0.011803 if you live in New Castle County.
Be sure to use the value as assessed by the county. The towns of Smyrna and Clayton use different assessments for their taxes.
