Dateline: September 6, 2007

CISD kills personal property tax

Christmas came early for taxpayers in the Clarendon school district when school trustees eliminated the personal property tax last Thursday.

Clarendon ISD officials said new funding and new rules from the State of Texas gave the school an opportunity it had not had before.

“The only reason we can afford to do this is because it’s not tied to Tier II funds now,” Superintendent Monty Hysinger said. “If we had done this last year, it would have cost us $450,000 (in local and state funds).”

Under the new funding rules, eliminating the personal property tax will cost the district $147,498 in local money, but the state will make up $95,794 of that, leaving the district with a net loss of $51,704.

“That is less than one percent of our budget,” Hysinger said.

School trustees said they understood the tax on cars, trucks, boats, and other personal property was unpopular and that they felt like this was a rare chance to get rid of the tax.

“We can’t predict three years from now; but at one percent of the budget, I’m confident to say we can do away with it,” said Trustee James Shelton. “It creates good public relations, and we won’t have this opportunity again.”

Board President Wayne Hardin said the board was trying to be good stewards of the tax dollars they are entrusted with.

“I hope people trust us with the job we’ve done,” Hardin said. “We’re doing what we think is best for the students, the district, and the taxpayers.”

A group known as the Concerned Citizens of Donley County was outspoken last year about its opposition to the personal property taxes. The group’s spokesman, Brad Dalton, said the state deserved more credit for CISD’s action than the Concerned Citizens did, but he was pleased with the news.

“I think it’s wonderful, and I wish the other entities would follow suit,” Dalton said. “It’s a hardship – especially with the price of gas – because a car is a necessity. But this is great news.”

The district’s move is part of the school tax rate compression coming from the State Legislature, which pumps more state money into local schools while driving down the local tax rate. The state wants school districts to get their ad valorem rates down to $1 per $100 of valuation, although districts are allowed up to four cents more than that rate, and it could be higher based on bonded indebtedness.

CISD Trustees adopted a tax rate of $1.04 per $100 valuation. That’s down 21 cents from last year’s rate of $1.258325. Taxes on a $100,000 home will drop $218 under the new rate.

Board members did voice concerns about eliminating the personal property tax because it removes a revenue source for the school and because the state will require the school to go to the voters if it ever wants to go above the new $1.04 cap.

“You hope if it ever comes to that, the voters will remember you did away with the personal property tax,” Hysinger told the board.

Dalton said he thinks that will be the case.

“I think they will (remember),” he said. “I would be willing to give something back to the school if they needed it.”

Hedley School Superintendent Bryan Hill said his district considered doing away with personal property tax also, but that HISD could not afford to lose the net $20,000 that would have resulted.

“I’m proud (Clarendon) did it,” Hill said. “I’d love to do it, but we can’t afford to lose the money when we have a declining average daily attendance.”

Hill said the Hedley school needs the money generated by the personal property tax to help buy a new school bus this year, which is expected to cost $25,000.

HISD is looking at a tax rate of $1.065 for the coming year. Six and one-half cents of that is for the school’s bond payment.