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The Rolla Daily News - Rolla, MO
  • Higher sales tax revenue means drop in tax levy

  • An increase of $179,002 in Proposition C sales tax proceeds will result in the reduction of the Rolla school property tax levy from last year’s levy by not quite a penny per $100 assessed valuation.
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  • An increase of $179,002 in Proposition C sales tax proceeds will result in the reduction of the Rolla school property tax levy from last year’s levy by not quite a penny per $100 assessed valuation.
    The Rolla Board of Education Thursday night set the property tax levy at $3.2112.
    Of that, $2.9612 is for the operating levy and 25 cents is for the debt service levy. Last year, the total levy was $3.2196.
    Finance Director Vicki Gorman presented the budget figures at the board meeting held at the Rolla Technical Center prior to a public hearing required by law. No one spoke in the hearing.
    What does this mean to you, the taxpaying property owner?
    Gorman said that a residence appraised at $150,000 would have a $28,500 assessed value, because residences are assessed at 19 percent of their value. Multiply that $28,500 by $3.2112 and then divide the product by 100 to get $915.19 total school tax owed this year.
    That will be down from the $917.59 owed last year when the levy was just slightly higher, so the homeowner in this scenario will save $2.40.
    The reason for the decrease is a statewide ballot question approved by voters in November 1982. It was called Proposition C and it offered voters the chance to approve a one-cent sales tax for teacher salaries.
    The trade-off was that half of the amount collected by the sales tax in the district would be used to reduce the property tax rate.
    Gorman said the sales tax figure being used for the 2014-15 budget is $3,411,014.
    Half of that is $1,705,507, so the property tax levy will have to be lowered sufficiently to reduce by that amount the total money generated by the property tax.

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