Last week’s Pine Journal story, “Carlton residents to vote on funds for a new school” contained an error regarding the percentage of property tax increase that would come with approval of Tuesday’s bond referendum questions 1 and 2.
The property tax impact would be substantially more than the “almost 40 percent” reported in last week’s story.
Looking at an actual property tax statement for a home valued at $238,800, the current school district taxes on the property are $724.33 a year. Using the tax impact calculator provided on the school district website, the increase is calculated at an additional $763 if just Question 1 passes, plus $120 if Question 2 passes. In other words, if both questions pass, school district taxes would be an additional $883 a year, or $73.55 a month.
Percentage-wise, that means those homeowners would see an increase of 105 percent for Question 1, and nearly 122 percent if both questions pass.
Financial consultant Jodie Zesbaugh said the percentage of tax impact is lower for less expensive homes. For a residential home with an estimated market value of $150,000 (which is closer to the average for Carlton Schools), the estimated percentage increase (in school taxes only) is 98 percent for Question 1 and 113 percent with the passage of both questions. For a residential home with an estimated market value of $100,000, the estimated percentage increase in school taxes is 87 percent for Question 1, and 100 percent with the passage of both questions.
The tax increase could be mitigated for some, the referendum section of the school district website explains, through agricultural credits and federal and state programs for property tax refunds, deductions and deferrals.
The “almost 40 percent” in last week’s story actually refers to the increase in net tax capacity tax rate. An easier way for Carlton School District residents to find out their estimated tax increase is by using the school district’s tax calculator at http://www.ehlers-inc.com/custom/taxinformation/Carlton/. Just enter the estimated market value of your home and the calculator will tell you the expected tax increase over current taxes.