The Mississippi House Education Committee approved a bill Wednesday that would take away school boards’ ability to increase property tax rates without putting the issue to a local vote.
Rep. Dana Criswell, R-Olive Branch, authored the bill and argued that people should be allowed to vote on even the smallest tax increases.
HB203 would require a referendum of local voters if school boards seek to increase taxes by more than 2 percent over the amount levied in the preceding year.
The bill passed the committee vote by a split vote of 12-10. Those opposing the bill included Democrats on the committee as well as a few Republicans.
Opponents argued the proposed law would take away school boards’ home-rule powers as outlined in Mississippi Code of 1972.
Some lawmakers wondered whether limiting taxing powers is a good idea at a time when legislators are looking at changes to state funding formulas for education. Under EdBuild’s proposed formula, some districts could presumably have to raise taxes to make up for state funding cuts.
Leflore County Schools saw an ad valorem tax increase in 2016 to raise funds needed to supplement state and federal funding. The district received approximately 22 percent of its annual budget from ad valorem taxes.
The Greenwood Public School District was poised to increase ad valorem taxes but didn’t have to follow though when Leflore County property tax assessments in 2016 came in higher than expected.
Currently a school district can increase local tax revenues by up to 7 percent from what it is projected to collect in its current fiscal year before having to put the increase to a local referendum.
The bill has been referred to the House Ways and Means Committee for review before it moves forward to the Senate.
• Contact Kathryn Eastburn at 581-7235 or keastburn@gwcommonwealth.com.
