The School District of Clayton’s Board of Education approved the 2018 tax rate at its Sept. 26 meeting. The residential rate will increase from $3.6494 to $3.6921, while the commercial rate will fall from $4.1682 to $4.0670.
“Operating tax rates in Missouri are inversely related to assessed values. Rates are reduced when values increase through reassessment,” said Chief Financial Officer Mary Jo Gruber. “This process provides stable funding for tax-supported organizations and prevents both large tax increases for property owners and large revenue increases for taxing entities during periods of increasing property values.”
School districts in St. Louis County have to set tax rates for four different classes of property: residential real estate, commercial real estate, personal property and agricultural. However, a “blended” rate of all classes of property is used for reporting purposes. The District’s 2018-2019 blended rate of $3.8655 is $0.0253 lower than the 2017-2018 rate of $3.8908.
The change in the blended rate is primarily due to the change in the allowable recoupment of protested taxes between 2017 and 2018. A recoupment occurs when property owner(s) successfully, and retroactively, protest and are granted a reduction in assessed value. These settlements result in the District refunding previously collected taxes that were paid in protest. The District can recover its lost revenues through a recoupment adjustment.