Tuition tax reduction anchors overall tax rate decrease for Indian River property owners

SELBYVILLE – A significant decrease in tuition tax equates to more savings for taxpayers in the Indian River School District.

The Indian River School District has lowered its property tax rate for the third consecutive year.

For fiscal year 2017, the district’s overall property tax rate will decrease from $2.689 to $2.578 per $100 of assessed value. This amounts to a rate decrease of 11.1 cents.

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The change was approved by the IRSD board of education at a special meeting July 11.

According to IRSD spokesman David Maull, the decrease resulted mainly from a significant reduction in the tuition portion of the overall tax rate, which provides funding for special needs students.

Enrollment growth and a subsequent increase in the district’s unit count allowed the district to shift some personnel costs to other funding sources and lower the tuition rate. The minor capital improvement portion of the overall rate also saw a slight decrease, Mr. Maull said.

The tuition and minor capital improvement reductions offset a slight increase in the debt service rate.

The school board previously approved combined tax rate reductions of 5.4 cents in FY15 and FY16.

Since FY15, the district’s property tax rate has been lowered by 16.5 cents.

To calculate their IRSD school taxes, residents should divide their property assessment by 100 and then multiply that number by the tax rate of $2.578. This will determine their overall tax burden for Fiscal Year 2017.

The Sussex County Post delivers news from Georgetown and southern Delaware. Follow @SussexPost on Twitter.

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