The Marysville School System is contesting the value of six commercial properties in the district, a move that could result in more than $400,000 of increased tax payments.
While the number is substantial, the board of education learned at Thursday night’s meeting that recent state legislation has substantially limited the district’s ability to challenge values. Treasurer Todd Johnson said the district previously would challenge values on more than 20 properties each year before House Bill 126 was approved in July, which stipulates that only properties sold for 10% above and $500,000 more than the county auditor’s estimated value can be challenged.
The six properties being challenged are:
•436 W. Third St., the Arbors Apartment complex, estimated value $4,139,090, sale price $13,800,000 ($9,660,910 increase), potential annual tax increase $180,494.
•1565 London Ave., Heritage Senior Living of Marysville, estimated value $5,420,970, sale price $12,000,000 ($6,579,030 increase), potential annual tax increase $122,915.
•702 E. Fifth St., Sherwin Williams Paint Store, estimated value $134,410, sale price $2,411,600 ($2,277,190 increase), potential annual tax increase $42,545.
•16001 Square Drive, Texas Roadhouse, estimated value $1,218,900, sale price $2,916,000 ($1,697,100 increase), potential annual tax increase $31,707.
•835 Delaware Ave., Taco Bell, estimated value $325,390, sale price $1,750,000 ($1,424,610 increase), potential annual tax increase $26,616.
•800 Delaware Ave., Sheetz, estimated value $1,324,120, sale price $2,624,000 ($1,299,880 increase), potential annual tax increase $24,286.
In total, the district is seeking a total value increase of nearly $23 million on the six properties, which would bring in $428,562 annually for the district.
“The benefit to the schools is pretty substantial,” Board member Nan Savidge said.
Johnson said that the challenges must go before the Union County Board of Revision and stressed that any tax increase would be determined by that group.
Board member Jermaine Ferguson asked how the district researches and compiles its list of properties. Johnson said the district’s legal counsel produces the list. When asked about the cost by Ferguson, the treasurer said the fee varies but the district generally gets a return in the neighborhood of $14 for every $1 it pays its attorneys.
Johnson noted that in the past he worked directly with the legal counsel to compile the list and filed the challenges himself, but HB 126 also mandated that boards of education must vote to approve the move.
Johnson said the bill was not a good thing for schools as it handcuffs districts’ ability to hold businesses accountable for property values. Though the district previously was allowed to pursue adjustments of smaller amounts, it never went after residential property owners.
The treasurer pointed out challenging the values of properties is a matter of fairness rather than finances.
School tax levies are designed to generate a certain amount of money and that figure is spread out among all taxpayers. Ensuring businesses are paying their fair share lessens the burden on area homeowners, he said
“They should just pay their fair share,” Johnson said. “If somebody’s not … you’re (homeowners) making up the difference.”