Property tax rates will be reduced under a proposal being considered by the Newport Board of Education.
The Newport Independent Schools’ administration has proposed reducing the district’s 2024-25 property tax rates – also known as the compensating rate – from $9.64 cents per $1,000 of assessed property value to $7.68. Under Kentucky law, schools are only allowed to generate the same amount of tax money on real property as it did the previous year, plus an additional four percent for inflation.
But even though the rate is dropping, the district would bring in approximately $1.1 million of new revenue due to increased property tax valuations determined by the Campbell County Property Value Administrator (PVA).
Those funds will allow the district to:
· Fund Phases II and III of the new Newport High School Stadium.
· Purchase student desks and furniture.
· Install new flooring, doors and LED lighting at the Newport Primary School.
· Replace privacy fences at the Primary School and the district’s Central Office.
· Replace windows and the roof at the Central Office.
· Pay down debt.
“These initiatives are about taking a proactive stance and equipping students with all of the necessary tools with an eye toward successful outcomes,” said Newport Independent Schools Superintendent Tony Watts.
“As the Newport Independent Schools Board of Education prepares to set the tax rate for the 2024- 25 school year, it is important to provide the community with information that lends insight into the board’s thought process in arriving at its tax rate decision,” Superintendent Watts said.
However, due to the PVA’s property reassessment and a significant increase of property values within the district, some property owners will pay higher taxes next year. Homeowners whose property was not reassessed will pay lower taxes.
It is imperative to note that the PVA is an independent state agency, and the district has no control or say in its operations, including determining the value of property in the school district.
“The role of PVA assessments is vital to grasping the full scope of the school district establishing its tax rate,” said Superintendent Watts. “Increases in PVA assessments generally translate to higher tax bills for property owners.”
Increased revenue is also needed due to errors the PVA made in last year’s estimates that cost the district approximately $400,000.
The Newport Board of Education is scheduled to vote on the proposed tax rate during its Aug. 28 regularly scheduled monthly meeting.