Warsaw School Board Opposes Elimination Of Business Personal Property Tax Without Replacement Revenue
July 28, 2016 at 4:25 p.m.
By David [email protected]
The tax is on businesses’ machinery and equipment. According to the Indianapolis Star, “Indiana is the only state in the Midwest, other than Kentucky, that taxes machinery and equipment (personal property) – and Kentucky taxes it at a much lower rate. In fact, only a handful of states tax personal property at a higher rate than Indiana.”
Chief Financial Officer Kevin Scott said the resolution was individualized for Warsaw Community School Corp.
“I think the fact that folks don’t realize is that what it will cost is not just lost revenue for cities, towns and schools, but anyone not at the tax cap, their taxes are going to go up,” Scott indicated. “So while most folks will say, ‘taxes should stay the same or go down,’ that’s really not what’s going to happen with this.”
He said it’s going to put pressure on cities like Warsaw, which will have to tighten its police budget and reduce staff. “And that will be true for schools,” he added.
The Legislature Service Agency is an entity that serves the General Assembly. It has analyzed the proposal to get rid of the tax. If passed fully, Scott said, the Agency estimates the loss for WCS will be $773,408, and that will be split across the Capital Projects, Transportation and Bus Replacement Funds.
CPF would account for $508,092 of that lost revenue. “That means less technology for our buildings and our students. It might mean less repair/replacement possibilities for our buildings,” Scott stated.
The impact to transportation would be a loss of $219,399. “How that relates to us is if we’re short in transportation, we’re going to have to spend those dollars out of the General Fund,” he said. “There, too, it is going to impact students. It may impact class sizes.”
Warsaw Schools’ lost revenue for the Bus Replacement Fund is estimated at $45,917.
Scott stated, “All we’re asking, as well as many other entities statewide, is that if they consider such a move, how do they try to make that (equitable) statewide. The benefit of attracting businesses, in my humble opinion, will be scattershot. Perhaps they will attract businesses to Fort Wayne or Lafayette, but taxes statewide – in Warsaw, Plymouth and Rochester – wouldn’t benefit. So that’s why this request is coming forward. It’s supporting all those others that are making the same type of statement that this needs further discussion certainly before they take action.”
In addition to the nearly $800,000 projected loss if the Business Personal Property Tax is eliminated, Scott also presented information showing that WCS will lose $485,789 for 2014 because of the constitutional property tax cap. That includes $319,140 in CPF; $137,808 in Transportation; and $28,841 in Bus Replacement.
Those two losses combined for WCS are projected at $1,259,197.
Scott concluded by saying the resolution will be shared with Indiana’s General Assembly.
The board then took a unanimous vote to approve it, with President Jennifer Tandy absent from the meeting.
In other business, the school board:
• Heard a presentation on Junior Achievement from Assistant Superintendent and Chief Academic Officer David Hoffert and Vicky Decker, representing JA.
During the past year, JA has donated $48,477 worth of curricular supplies and financial literacy experiences along with hundreds of volunteer hours that impacted 3,737 WCS students in kindergarten through 12th grade, Hoffert stated.
• Heard a presentation from Chief Accountability Officer Amy Sivley on the ISTEP+ and IREAD3 testing windows. Both have been extended as a result of winter cancellations across the state.
The window for ISTEP+ is March 3-21, and for IREAD3 is March 17-21. WCS will beging ISTEP+ testing March 10, and IREAD3 testing will be March 18.
Food and Nutrition Services will once again offer free breakfast during ISTEP testing for all students in elementary and middle schools.
• Heard Chief Technology Officer Brad Hagg was recognized as one of the 20 Top Educators to Watch by the National School Boards Association.
• Heard June 4 will be the last day of school for students. Graduation will be at 7 p.m. June 6. The 2014 Summer School Program will begin June 9.
• Heard the school corporation total enrollment in February for grades pre-kindergarten to 12th was 7,288, or 187 more than the same time last year.
Indiana now requires schools to do official counts twice a year, in September and February. Hintz said he was happy to report that WCS’s enrollment increased by 30 students since the official count in the fall.[[In-content Ad]]
The tax is on businesses’ machinery and equipment. According to the Indianapolis Star, “Indiana is the only state in the Midwest, other than Kentucky, that taxes machinery and equipment (personal property) – and Kentucky taxes it at a much lower rate. In fact, only a handful of states tax personal property at a higher rate than Indiana.”
Chief Financial Officer Kevin Scott said the resolution was individualized for Warsaw Community School Corp.
“I think the fact that folks don’t realize is that what it will cost is not just lost revenue for cities, towns and schools, but anyone not at the tax cap, their taxes are going to go up,” Scott indicated. “So while most folks will say, ‘taxes should stay the same or go down,’ that’s really not what’s going to happen with this.”
He said it’s going to put pressure on cities like Warsaw, which will have to tighten its police budget and reduce staff. “And that will be true for schools,” he added.
The Legislature Service Agency is an entity that serves the General Assembly. It has analyzed the proposal to get rid of the tax. If passed fully, Scott said, the Agency estimates the loss for WCS will be $773,408, and that will be split across the Capital Projects, Transportation and Bus Replacement Funds.
CPF would account for $508,092 of that lost revenue. “That means less technology for our buildings and our students. It might mean less repair/replacement possibilities for our buildings,” Scott stated.
The impact to transportation would be a loss of $219,399. “How that relates to us is if we’re short in transportation, we’re going to have to spend those dollars out of the General Fund,” he said. “There, too, it is going to impact students. It may impact class sizes.”
Warsaw Schools’ lost revenue for the Bus Replacement Fund is estimated at $45,917.
Scott stated, “All we’re asking, as well as many other entities statewide, is that if they consider such a move, how do they try to make that (equitable) statewide. The benefit of attracting businesses, in my humble opinion, will be scattershot. Perhaps they will attract businesses to Fort Wayne or Lafayette, but taxes statewide – in Warsaw, Plymouth and Rochester – wouldn’t benefit. So that’s why this request is coming forward. It’s supporting all those others that are making the same type of statement that this needs further discussion certainly before they take action.”
In addition to the nearly $800,000 projected loss if the Business Personal Property Tax is eliminated, Scott also presented information showing that WCS will lose $485,789 for 2014 because of the constitutional property tax cap. That includes $319,140 in CPF; $137,808 in Transportation; and $28,841 in Bus Replacement.
Those two losses combined for WCS are projected at $1,259,197.
Scott concluded by saying the resolution will be shared with Indiana’s General Assembly.
The board then took a unanimous vote to approve it, with President Jennifer Tandy absent from the meeting.
In other business, the school board:
• Heard a presentation on Junior Achievement from Assistant Superintendent and Chief Academic Officer David Hoffert and Vicky Decker, representing JA.
During the past year, JA has donated $48,477 worth of curricular supplies and financial literacy experiences along with hundreds of volunteer hours that impacted 3,737 WCS students in kindergarten through 12th grade, Hoffert stated.
• Heard a presentation from Chief Accountability Officer Amy Sivley on the ISTEP+ and IREAD3 testing windows. Both have been extended as a result of winter cancellations across the state.
The window for ISTEP+ is March 3-21, and for IREAD3 is March 17-21. WCS will beging ISTEP+ testing March 10, and IREAD3 testing will be March 18.
Food and Nutrition Services will once again offer free breakfast during ISTEP testing for all students in elementary and middle schools.
• Heard Chief Technology Officer Brad Hagg was recognized as one of the 20 Top Educators to Watch by the National School Boards Association.
• Heard June 4 will be the last day of school for students. Graduation will be at 7 p.m. June 6. The 2014 Summer School Program will begin June 9.
• Heard the school corporation total enrollment in February for grades pre-kindergarten to 12th was 7,288, or 187 more than the same time last year.
Indiana now requires schools to do official counts twice a year, in September and February. Hintz said he was happy to report that WCS’s enrollment increased by 30 students since the official count in the fall.[[In-content Ad]]
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