Lebanon Business Park 2014 School Taxes

Watchdog Indiana Home Page Watchdog Lebanon Home Page Lebanon Business Park 2014 Property Taxes Lebanon Business Park Tax Increment Financing Area Impact

Overview

It is of significant public policy interest to determine what portion of all the property taxes collected by the Lebanon Community School Corporation (LCSC) comes from companies that are located in the Lebanon Business Park (LBP). The LBP companies are located within the LCSC school district. 

2014 LCSC Budget & Property Tax Data

The 2014 Certified Budget, 2014 Certified Property Tax Levy, and 2014 Certified Property Tax Rate data listed next for the Lebanon Community School Corporation was obtained by (1) going to the “Indiana Gateway for Local Government Units” at https://gateway.ifionline.org/ then (2) clicking on “Report Builder” then (3) clicking on “Budgets” then (4) clicking on “Certified Budget, Levy, Rate” and then (5) selecting “Boone” County, “School” Unit Type, and “Lebanon Community School Corporation” Unit Name.

2014 LCSC Certified Budget
$  2,000,000 Rainy Day Fund
$24,190,150 General Fund
$  4,358,063 Debt Service Fund
$     304,559 School Pension Debt Fund
$  3,446,000 Referendum Debt Fund
$  3,208,738 Capital Projects Fund
$  1,904,862 Transportation Fund
$     326,000 Bus Replacement Fund
$39,738,372 TOTAL Certified Budget

2014 LCSC Certified Property Tax Levy
$                0 Rainy Day Fund
$                0 General Fund
$  3,592,441 Debt Service Fund
$     272,932 School Pension Debt Fund
$  3,547,093 Referendum Debt Fund
$  2,766,646 Capital Projects Fund
$  1,552,448 Transportation Fund
$     327,752 Bus Replacement Fund
$12,059,312 TOTAL Certified Property Tax Levy

2014 LCSC Certified Property Tax Rate
$          0 Rainy Day Fund
$          0 General Fund
$ 0.3080 Debt Service Fund
$ 0.0234 School Pension Debt Fund
$ 0.2590 Referendum Debt Fund (26.19% of TOTAL)
$ 0.2372 Capital Projects Fund
$ 0.1331 Transportation Fund
$ 0.0281 Bus Replacement Fund
$ 0.9888 TOTAL Certified Property Tax Rate

Local property taxes provide $12.06 million - or 30.35% - of the $39.74 million total 2014 LCSC budget. It should be noted that the property taxes generated by the $0.2590 Referendum Debt Fund property tax rate are not subject to the property tax caps.

LCSC School Property Taxes Paid By LBP Companies Outside Lebanon TIF District

There are 13 LBP companies located outside the Lebanon Tax Increment Financing (TIF) District. All of the school property taxes paid by these 13 LBP companies go to the LCSC. The 2014 school property tax paid to the LCSC by each of these 13 LBP companies is listed next.

LCSC Referendum Debt Property Taxes Paid By LBP Companies Inside Lebanon TIF District

There are 12 LBP companies located inside the Lebanon TIF District. Almost all of the property taxes paid by these 12 LBP companies go to the Lebanon Redevelopment Commission instead of local government units. One exception is the property tax earmarked for the LCSC Referendum Debt Fund. The property tax rate for the LCSC Referendum Debt Fund is 26.19 percent of the total LCSC property tax rate. The 2014 Referendum Debt Fund school property tax paid to the LCSC by each of the 12 LBP companies located inside the Lebanon TIF District can be computed by multiplying by 26.19 percent the 2014 School Tax Amount included on each company’s 2014 property tax bill. The 2014 Referendum Debt Fund school property tax paid to the LCSC by each of these 12 LBP companies is listed next.

LCSC Other School Property Taxes Paid By LBP Companies Inside Lebanon TIF District

There are 12 LBP companies located inside the Lebanon TIF District. Almost all of the property taxes paid by these 12 LBP companies go to the Lebanon Redevelopment Commission instead of local government units. One exception is the property taxes generated by the base assessed value inside the Lebanon TIF District. The base assessed value is the property tax value of the property within the Lebanon TIF District prior to development by the 12 LBP companies - the property taxes generated by the base assessed value go to local government units, including the LCSC schools.

The 2014 total property taxes paid by the 12 LBP companies located inside the Lebanon TIF District was $2,482,000 - see http://www.finplaneducation.net/lbp_property_taxes.htm.

According to the Boone County Pay 2014 Property Tax Abstract, the 12 LBP companies located inside the Lebanon TIF District paid $2,043,674.26 in 2014 property taxes to the Lebanon Redevelopment Commission:
$   187,820.52 from the DA Lubricant TIF District
$   140,985.54 from the Lebanon Business Park Building #11 (CNH America)
$1,714,868.20 from the Lebanon Economic Development Area
$2,043,674.26 TOTAL

Therefore, the 12 LBP companies located inside the Lebanon TIF District paid a total of $438,325.74 in 2014 property taxes to local government units ($2,482,000 less $2,043,674.26).

As tabulated above, $291,254.38 was paid by the 12 LBP companies located inside the Lebanon TIF District to the LCSC for the 2014 Referendum Debt Fund. This leaves $147,071.36 in property taxes generated by the base assessed value inside the Lebanon TIF District that went to local government units in 2014 ($438,325.74 less $291,254.38).

The 2014 LCSC Property Tax Rate for all funds other than the Referendum Debt Fund is $0.7298 ($0.9888 less $0.2590), which is 33.06 percent or the total $2.2074 City of Lebanon Property Tax Rate. Therefore, the 2014 LCSC school property taxes other than the Referendum Fund property taxes paid by the 12 LBP companies located inside the Lebanon TIF District totaled $48,621.67 ($147,071.36 times 0.3306).

Conclusion

The 2014 LCSC property taxes paid by the LBP companies outside the Lebanon TIF District ($1.55 million) combined with the 2014 LCSC Referendum Debt property taxes paid by the LBP companies inside the Lebanon TIF District ($0.29 million) and the 2014 LCSC other school property taxes paid by the LBP companies inside the Lebanon TIF District ($0.05 million) together total $1.89 million. The 2014 LCSC property taxes paid by all of the LBP companies ($1.89 million) is 15.67 percent of the total 2014 LCSC property taxes ($12.06 million). NOTE: The 2014 LCSC property taxes paid by all of the LBP companies ($1.89 million) is only 4.76 percent of the total 2014 LCSC budget (39.74 million).

Companies located in the Lebanon Business Park currently pay about 16 percent of all the property taxes collected by the Lebanon Community School Corporation.

Watchdog Indiana Home Page Watchdog Lebanon Home Page Lebanon Business Park 2014 Property Taxes Lebanon Business Park Tax Increment Financing Area Impact

This page was last updated on 03/28/17 .