By Bob Belcher
Corsicana Daily Sun
The Navarro College Board of Trustees voted 5 to 2 Thursday their intent to adopt the effective tax rate for its new budget.
The effective tax rate allows the college to collect the same amount in ad valorem tax revenue as it did this year.
Because the certified tax rolls for the coming tax year show a decrease in taxable property value in the state — about $8.5 million less for the college’s taxing purposes — the college stood to collect about $31,000 less in ad valorem taxes if it kept the same tax rate of 11.9 cents per $100 valuation.
The effective tax rate calculated this year for the college is 12.02 cents per $100 valuation — a difference of 12 one-hundredths of a cent. A home valued at $100,000 would pay an additional $1.20 in college taxes using the effective rate, should trustees formally adopt the move.
The administration recommendation on the board’s agenda called for the rate to remain at 11.9 cents. Dr. James Price made the motion to use the effective tax rate instead.
“If we don’t do that and try to maintain the same income we’d just have to double up next year in order to catch up,” Price said following the meeting. “The community I think would agree to support the college as they have always done.” Price said Navarro County tax dollars stay in Navarro County and are not sent to Ellis County, which does not pay an ad valorem tax for the college, but does pay out-of-district tuition and fees.
Board president Lloyd Huffman agreed with the move.
“I think the board felt it was important to at least keep the same amount of money we’ve been getting from the taxes in Navarro County,” Huffman said.
Trustee Phil Judson joined Buster Atkeisson in voting no on using the effective tax rate and staying with the current rate.
“The increase would only develop $31,000 in income,” Judson said. “We’ve lost a number of industries. It is difficult to recruit new industries with an increased tax rate. I just felt like the increase in the tax rate would not be worth the gain at this time.”
Trustees also officially adopted the budget for the upcoming fiscal year. The 2013-14 budget comes in at $115,856,506 to support the college’s operations in Corsicana, Mexia, Midlothian and Waxahachie.
Read more about the college board meeting in the Saturday online and print editions of the Daily Sun.
Bob Belcher may be reached by email at firstname.lastname@example.org. Want to “Soundoff” on this story? Email: email@example.com