June 10, 2024 at 5:00 PM - Board Work Session

Description:  Passed in 2007, SB 1036 allowed school districts to impose a tax on new construction measured by the square footage of improvements (affordable housing, public buildings, agricultural buildings, hospitals, private schools, and religious facilities are exempt). SB 1036 defined and required revenues to be used for capital improvements. Construction taxes imposed by a school district must be collected by a local government, local service district, special government body, state agency or state official that issues a permit for structural improvements regulated by the state building code. An intergovernmental agreement with local governments collecting the tax is required and collection expenses are limited to 4% of tax revenue. DCBS is allowed to establish an administration fee of .25% of tax revenue. School districts with construction tax revenue are required to develop long-term facility plans. Construction taxes may be used for repayment of capital improvement debt.

The district has had intergovernmental agreements with the City of Banks and Washington County since 2009. We have not increased the tax in many years. In researching what other districts are currently doing, we feel it is time to adjust the rate for Banks School District to continue to accommodate student growth as a result of community development. 

The proposed resolution brings Banks School District up to the state approved rate and allows for annual adjustment in future years as determined by the Department of Revenue.

It is recommended that the Board motions to approve the related resolution in the Regualr Board meeting.