LaBrae Reduces 2024 Taxes

LaBrae Significantly Lowers the 2024 Bond Tax Rate 

LaBrae Local Schools is reducing the rate of taxation in 2024 for the bond used to pay the outstanding debt incurred when the District built the LaBrae Complex. Even better news, the bond debt will be paid in full in December of 2024! This year marks the last year that LaBrae taxpayers will have taxes collected to pay construction debt obligations. The original debt to construct LaBrae’s grade 3-12 building was refinanced in 2011 as the District took advantage of historically low interest rates. The refinancing of the debt saved the District, and subsequently, LaBrae taxpayers, $631,644 in interest since 2011.

In 2023, LaBrae Local Schools was able to compound the aforementioned interest savings by continuing the return of unused principal from the bond levy to taxpayers. The 2023 tax rate on the LaBrae bond debt was reduced from 3.8 mills to 3.3 mills of taxation. In 2024, the bond rate will be reduced to 2.2 mills of taxation. For comparison, the 2016 tax rate on the bond debt was 5.7 mills. From 2017-2019, the tax rate stood at 5.0 mills. The bond millage was lowered to 4.5 mills in 2020. What does this mean for a property owner in our community? In 2016 at 5.7 mills, the owner of a $100,000 home paid $199.50 in taxes to help fund the bond obligation. With a reduction in millage to 3.3 mills in 2023, that same homeowner saw their tax liability lowered to $115.50.

This coming year is markedly different than in prior years as property values have increased, which contributes to the District being able to significantly lower the tax rate for the bond. With valuation increases averaging 33% across the county, the $100,000 previously valued home is nominally valued at $133,000 in 2024. The owner of such a home, at 2.2 mills will pay $102.41 in property tax for the bond. Despite the increase in value, the reduction in millage nets the aforementioned property owner $13.09 in property tax savings in 2024. In total, such a property owner is paying $97.09 less in annual property taxes than paid in 2016 when the tax rate was 5.7 mills. The Board is relieved to finally be in a position to pay off the construction debt, is grateful to our community for their support, and is excited to be able to have returned savings to taxpayers along the way.

Should you have questions regarding the information herein, please do not hesitate to contact the Superintendent or Treasurer at 330.898.0800.