The Norwich School Board held on January 11 the first of three meetings to discuss the proposed budget for 2018-2019. The good news for taxpayers is that the overall budget for next year is lower than last. The bad news is that taxes are going up - a lot. This post is on the tax impact. The budget post is here.
Taking into account revenues the total overall school budget amount proposed is $10,937,093, a modest DECLINE of 0.24%.
That does not mean tax relief for Norwich homeowners, because the State Education Fund has a shortfall and the formula for calculating taxes is byzantine. The estimate by SAU 70 is that the homestead tax rate will increase by nearly 5% per cent or 9 cents to $1.9024. Yikes. This is the largest increase that anyone on the Norwich School Board can recall going back nine years.
Estimated Tax Rate Calculation For Homestead Property. Source: Budget Presentation January 11, 2018
The income sensitivity percentage will increase from 3.07% to 3.10%. The nonresidential rate will increase 7.19 % from 1.5461 to $1.6573. Homestead owners pay 24.5 cents/$100 more than nonresidential property owners. See: School Homestead Tax Rate: How can this be fair?
Recall that under changes to the federal tax law, the deduction in 2018 for state and local taxes is capped at $10,000, though the standard deduction is also doubled.
The next meeting of the Norwich School Board to discuss the budget is January 18.