Tax Certiorari

The Board of Education adopted the budget in March. After careful review, the budget includes a 3.25% tax levy increase, which is below the allowable tax levy limit of 5.02%. The board has approved this lower tax levy to recognize the importance of weighing high-quality education while maintaining fiscal responsibility to taxpayers. The higher allowable tax levy limit is the result of a tax certiorari last year in the Town of Trenton, Erie Boulevard Hydropower. The school does not control property assessments that result in tax certiorari payments. Our Board has chosen to utilize reserves to keep the tax levy at a lower than allowable limit. For further information on tax certiorari impact, see the Q&A below.

Tax Certiorari FAQ

Q:  What is a tax certiorari case?

A:  A tax certiorari case occurs when a property owner challenges their property assessment in court, claiming it is too high. If the court agrees, the property owner may receive a refund of overpaid taxes.

Q:  Does the school district determine property assessments? 

A:  No. Property assessments are determined by each town within the district. The school district does not control property values or assessments.

Q:  Why does the district have to pay a refund?

A:  Although the towns determine assessments, school taxes are based on those assessments. When a court determines that taxes were overpaid, each taxing entity—including the school district—must refund its share. 

In this case, the district’s share of the refund from 2020-21 through 2024-25 totals $1,340,744.

Q:  How is the district paying for this?

A: The state does not provide aid to offset payments related to tax certiorari settlements. Rather than paying the full amount in one year—which would significantly impact the budget—the district issued a five-year bond. This allows the cost to be spread over five years. 

Q:  Will this impact the budget in future years?

A: Yes. The district will make annual bond payments for five years. Each year’s payment must be included in the budget until the bond is fully paid off. 

After five years, this financial obligation will end.

Q:  What does this mean for taxpayers?

A:  For the next five years, a portion of the tax levy will go toward paying off this settlement. Once the bond is paid in full, that expense will no longer be part of the budget.