STEP 1 IN BUILDING A NEW SCHOOL: THE RECALLABLE NICKEL TAX
“…The Lawrence County Board of Education has invited Mr. Joe Nance, a school finance specialist, to discuss the steps in financing the construction of a new school.
During the January regular board meeting, Mr. Nance informed the Board members that the Lawrence County School System currently has a $7.25 million bonding potential, which would approximately be less than half of the required amount to build a new school. In order to increase the bonding potential and to receive matching funding from the state, Board members would need to add a nickel tax to residents’ property taxes. According to Mr. Nance, a nickel tax and state matching funds would generate an additional $12.3 million towards funding the construction of a new school.
This recallable nickel tax is so named for two reasons. First, it is a recallable tax because the residents of a community can block, or “recall,” the nickel after a local board approves it. A nickel tax can be recalled through a petition process with the county clerk’s office. Second, it is a nickel tax because of the amount that is levied. Each property owner would pay approximately 5 cents for every $100 of property value. For example, a property owner would pay $0.50 in taxes for $1,000 of assessed property value; $5.00 for $10,000 of assessed property value; $50 for $100,000; and so on.
The Lawrence County Board of Education will have two meetings over the next two weeks. The recallable nickel tax will be included on the agenda for the regular board meeting that is scheduled for February 21st.
If the nickel tax is approved, the Board will hold a tax hearing and a special-called board meeting for additional discussions, in accordance with Kentucky Revised Statues, before the tax can be assessed.
