The preliminary procedures for a Clear Fork Local School District income tax renewal have been set in motion following last night’s board of education meeting.
Board members unanimously approved a resolution that certifies a district request to have an income tax renewal measure appear before district voters on the upcoming March ballot.
With the 5-0 vote, district treasurer Bradd Stevens will submit a request to the state tax commissioner who will then need to approve the request for it to appear on the spring ballot.
The proposal asks for a 1 percent district tax renewal that would fund both the local share of potential construction costs of new elementary school facilities, as well as cover operational costs of the district’s new and current school buildings.
The state has offered to finance 61 percent of new elementary school construction, meaning 39 percent of the project must be financed at a local level.
Despite the large initial cost of building new elementary schools, the district would be able to finance the project by renewing through the potential 1 percent tax renewal over the course of the next 20 years.
“Clear Fork is a not a typical school district,” Scott Ericson Director of Rockmill Financial said at the district’s community meetings. “The district is very strong financially.”
The current levy taxes 1 percent of residents earned income, which does not include IRA distributions, interest income, dividends, unemployment or capital gains.
“The district’s tax levy is a 1 percent earned income tax,” he said to those in attendance. “Renewing the 1 percent income tax will finance option 1 or 2. It also allows the district to continue to operate.”
Clear Fork Board of Education member Jim Klenk listens to discussion over the district’s financial options for the potential new elementary school construction