Holley's school tax rate lower than anticipated

Holley's school tax rate for 2005-2006 will be reduced by $1.16 per $1,000 of assessed value due in part to careful budget management and a change in equalization rates that will increase property values in four of the district's five towns.

During a regularly scheduled Board of Education meeting on August 15, District Business Administrator Eugene Mahaney announced a tax rate of $28.13 compared to last year's rate of $29.29. Originally, a reduction of $.50 in the tax rate was anticipated. When the State Board of Equalization and Assessment imposed a new equalization rate of 96 percent of assessed valuation for the towns of Murray and Clarendon, property values increased. Similar equalization rate adjustments were generated for the towns of Albion and Barre.

A home worth $100,000 and valued at 100 percent under the old equalization rate in both towns is now worth $104,167 under the 96 percent valuation. That change in value generates a smaller school tax increase. If the homeowner multiplies the approximate $4,000 increase in value by the old tax rate of $30 (rounded up), the additional school taxes would be $120. With the new tax rate applied to the change in equalization rates, the $120 tax is reduced to a total increase of approximately $16.

For information contact Mahaney at 638-6316 extension 2001.