Tax renewal resolution draws senator’s plea for ‘modest’ reduction

A resolution calling for elections to renew three St. Mary Parish school property taxes was approved by the School Board Thursday, but was preceded by a request from state Sen. Bret Allain, R-Franklin, for the board to consider “modest” reductions in millages.
“One of the real impediments to getting new business and people to move to an area has been high property taxes,” Allain said. “It is one of the first things these large companies look at when they are looking and making plans to move to an area.”
The board was faced with a resolution to schedule special elections on March 28, 2015, for 10-year tax renewals for maintenance and operations in three districts.
District 2, which includes Patterson, Berwick and Bayou Vista, would be asked to renew 12.7 mills. A 12-mill tax is asked in District 3, which is west of the Calumet Cut. In District 1, which includes Morgan City and Amelia, an 11.75 mill tax is requested.
Property taxes totaling above 100 mills are impediments to economic development, Allain said, citing information from Louisiana Economic Development.
“I’ve made the point in the past that 40 years ago St. Mary, Iberia, Lafourche and Terrebonne were relatively about the same size — 5,000 or 10,000 population,” he said. “They have doubled. They have beat us at this game. They have done economic development far in advance of what we have been able to do.”
Allain said, “If we can lower the property taxes and we can incentivize people to come here by any means. We are talking modest changes in the property tax. If you can increase the population of the parish by 5 percent that usually brings taxable property up 10 percent.”
Allain urged the School Board to try a modest reduction in its property tax rate for five years and if it doesn’t spur economic development “go back to what we have been doing.”
Murphy Pontiff, board president, said he appreciated Allain’s comments and understand his conservatism, but said the School Board during two previous reassessments has remained revenue neutral on property taxes.
“This board has done its job,” he said.
Michael Taylor, District 2 board member, which includes Patterson and Berwick, said, “We battle maintenance funds every year and scroll through all the requests from principals. We strain to give them the things needed.”
Taylor said the board has “always been extremely prudent with funds.”
Alton Ray Perry, the board’s chief financial officer, said fund balances are needed because the district’s facilities are aging.
Donald Aguillard, superintendent, said property tax collections recently declined by $180,000 in District 1.
“It turns out some of that is related to something that happens in Baton Rouge,” Aguillard said.
“Companies, entities, are opening businesses in parishes and they are granted five- and 10-year exemptions for property taxes,” he said.
Aguillard said he admires Allain’s passion for economic development, but, “I just know this board does not have any available property tax for construction. We continue to be faced with aging buildings and real needs.”