The last time the Hamilton Southeastern (HSE) School Board asked local voters to approve a referendum increasing property tax rates within the district boundaries, over 71% of those casting ballots voted in favor and the proposal passed overwhelmingly. That referendum, adding .2275 cents (per $100 of assessed valuation) to the local property tax rate, expires at the end of 2023.
The school board has indicated through public statements that a majority favor placing the referendum on the November ballot, continuing the present referendum tax rate for another 8 years.
A consultant hired by the board to guide them through the process explained the situation during a Tuesday morning board work session.
Hamilton Southeastern receives the third-lowest per-student support from the state, with Zionsville receiving the least, then Carmel.. In fiscal year 2023, HSE Schools received $6,378 in state support per student. The state average for per student support is $7,011.
The consultant explained the school district can have an approved referendum rate, but may review the rate and lower it once per year if the board so chooses.
The school district’s share of the local tax rate was 1.2616 in the first year of the current referendum, 2017. In 2023, the rate has gone down to 1.1882.
The consultant provided an example of a home in the district valued at $100,000. Once all deductions allowed for a principal residence are considered, the amount subject to the property tax rate is $33,800. Based on those numbers, the impact on the homeowner o the .2275 referendum rate would be $6.41 per month in 2023.
There was also discussion of how the referendum would be worded on the November ballot. State law prescribes some language, with some up to the discretion of the board. For example, if the board decides to continue the current referendum rate, the ballot question would be required to say this vote would increase the property tax, under state statutes.
The board would also be required to submit to the state a Revenue Spending Plan, detailing how the revenue from the referendum rate would be spent.
At the July 12 session, members of the school board will be voting on placing the referendum on the ballot, what the rate will be (even if it proposes continuing the same rate) and the precise language to be used on the ballot, within the bounds of state law.