Voters won’t be asked about tax limits

From the BCCT.

Voters won’t be asked about tax limits
Five districts are hoping state-authorized exemptions will allow them to exceed the property tax increase limit.
By JOAN HELLYER

School boards in Lower Bucks County will, once again, avoid asking voters for approval to raise property taxes above a pre-determined state limit for the next school year, district officials said.

The boards had until Jan. 29 to decide if voters’ approval to go above the limit would be needed during the May primary, according to the state’s property tax relief law.

Most districts are allowed to raise taxes 4.1 percent above their current millage rate, according to the state. Bristol’s index is 5.3 percent, and Bristol Township can raise taxes 5.2 percent without voter approval. The amount of increase allowable for each district is calculated by averaging the statewide average weekly wage with employment cost index data from the Bureau of Labor Statistics, state officials said.

Local districts have not had to go to referendum since the tax relief law known as Act 1 went into effect in 2006. However, this year it was a close call for several districts struggling to cover projected expenses in the midst of the economic downturn.

To make ends meet, the Bensalem, Bristol, Centennial, Neshaminy and Pennsbury boards are considering a suggested tax increase that combines the district’s predetermined index rate with different exemptions.

The exemptions include expenses such as special education, health benefits and debt service costs incurred before Act 1 went into effect, officials said.

Bensalem, for instance, is asking the state for permission to claim exemptions for special education and health benefits. Those exemptions would push the district’s total tax increase to 6 percent of the current millage of 130.4 mills.

That equates to 7.77 mills and would mean the owner of the average property in the district would pay $170 more in taxes in 2009-10 should the board impose the maximum increase possible without voter approval.

As per Act 1, the five area districts looking to combine the index increase with exemptions have until mid February to adopt a preliminary budget specifying how they expect to cover 2009-10 costs.

The other three area boards, Bristol Township, Council Rock and Morrisville, have passed resolutions promising to keep any property tax increases for 2009-10 to the state-imposed limit.

Those school boards have until late May to adopt a preliminary budget. All districts have until June 30 to adopt their 2009-10 final budgets.