Paying their fair share?

Clark County

BY THE NUMBERS

• Estimated revenue loss from taxpayers getting bills of $0, assuming assessed value of $123,400 on property.
2012
Clarksville Community School Corp.: $42,812
Clarksville: $235,248

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February 9, 2012

Clarksville residents paying $0 tax bills could affect government, school funding

By JEROD CLAPP Jerod.Clapp@newsandtribune.com The News and Tribune Thu Feb 09, 2012, 01:30 AM EST

CLARKSVILLE — Kim Knott, superintendent of Clarksville Community Schools, showed the Clarksville Town Council two problems that could affect the bottom lines of both entities after the council’s meeting earlier this week.

A lower assessed value for the school corporation and the town — directly related to the closure of the Colgate-Palmolive Co. plant — and taxpayers who receive tax bills of $0 could cause both entities to lose revenue.

Knott presented data she compiled on homeowners in the town’s taxing district, showing 77 homeowners in the school corporation’s taxing district don’t have anything to pay on their tax bills.

“This is a complicated issue,” Knott said. “I think we’re going to need additional support from an expert if we’re going to move forward on this issue.”

Knott said even if taxpayers are getting every deduction they qualify for, they should still pay something in taxes.

Bob Polston, council member, said the problem goes beyond the bottom line of the town and school system.

“The way we would look at it is that person has police protection, fire protection, garbage pickup, for nothing,” Polston said. “That’s a good deal.”

John Gilkey, president of the town council, said when Knott initially shared the information with him a few weeks ago, he was surprised to learn some residents weren’t paying any taxes.

“We were aware of the situation, even during the campaign I kept hearing rumors of people in town who don’t pay any taxes, and that’s something that you need to look at,” Gilkey said.

Paul Fetter, council member, said while homeowners should apply for every deduction they qualify for, their tax bills shouldn’t come in at $0.

“We’re going to try to find out why these people have zero property taxes or why some of them are unusually low,” Fetter said.” They may have perfectly legitimate tax deductions, but I don’t know what that would require to pay no taxes.”

At the council’s meeting, a unanimous vote passed to table the approval of a study from Umbaugh and Associates. The study would look at all taxation and spending done in the city, as well as tax increment finance districts and their revenue.

Gilkey said approval for the study will be voted on at the council’s meeting Feb. 21.

Bill Wilson, Clarksville schools board president, said by working collaboratively on the issue, both entities could see more money in their budgets.

“We are going to continue to pursue this, whatever it takes,” Wilson said. “What we want is to collaborate because it’s a loss for all of us.”

Also, Knott showed revenue loss for the city and the school district because of the lower assessed value of the Colgate property.

She said in the past, lower assessed values were compensated for by raising the tax rate, but with the new circuit breaker tax rates — brought in by putting a cap on property taxes in the state — prevent that option.