BECKLEY– The Raleigh County Board of Education will lose an estimated $2 million in county property taxes this year.
According to the Beckley Register Herald, this is mainly due to a new state tax department rule that lowers the rate of assessed property value on idle mining equipment to a “salvage value” of 30 percent.
Raleigh Schools Treasurer Darrin Butcher said the cuts are “significant” and will take a toll on the board budget.
BOE officials had projected last year a budget of $41.5 million for 2016 from regular and excess levy collections. this year, the office is projecting a collection of $37.6 million – a cut of about $3.9 million.
Medicaid revenues to schools has also been reduced and a reduction in state aid to public schools is expected.
Board officials predict that collections for the excess levy will not meet the levy call by about $1.6 million, which means the BOE will have to fund the deficit.
The trend is expected to continue into fiscal year 2018.
