North Kansas City Schools Board of Education approved rolling back the operating tax levy rate by 22 cents on Tuesday, Aug. 27. This means homeowners will pay less in taxes than they would have to North Kansas City Schools without the rollback, regardless of whether or not they were reassessed and saw an increase in the value of their property, according to a district press release. Last year’s total levy was $6.42.
Operating levies provide funds for classrooms, instruction and other school operating costs.
Tax revenue for the district comes primarily through two sources: state funding through the Missouri Foundation Formula and local real and personal property taxes. This past year, new commercial construction within the district totaled more than $35 million. However, due to economic incentive programs, NKC Schools only received funding based on $1.1 million.
Economic development incentives are causing a dramatic shift as to where the district’s tax dollars are generated, states the district release.
“In years past, the district relied on a fairly even split — a 50/50 split from residents and commercial business for tax dollars,” states the release. “The district now relies on residents for 76% of its tax dollars and 24% from businesses. This puts a larger portion of the burden on Northland families while relieving some larger businesses of their responsibility to fund schools.”