Taxation with representation: group working on tax reform
It's not often that local citizens have an opportunity to decide

how much they'll pay in school

taxes.

A committee appointed to study the Cameron County Area School District tax structure and make recommendations on changes is at a crossroads, and is eager to hear from the taxpayers themselves.

A public hearing will be held at 6:30 p.m. Tuesday in the high school library. Anyone with suggestions on how the tax structure should be altered is encouraged to attend.

Cameron County's Tax Study Commission held its third meeting on Tuesday night and failed to reach a consensus on the complicated issue. The commission is anxious to hear from the public.

Members of the commission include Rob Aversa (chairman), Peggy Vail, Kris Umble, Catherine Harford and Betty Allen.

Eventually, the group will issue a non-binding recommendation to the school board on changes in the tax structure. Whatever tax plan is approved by the

board will be placed on

the ballot for a "yes or

no" vote in May 2007.

Commission members

have been working with

Business Manager Carl

Mitchell to pore over

figures in an effort to make an informed choice among three options:

--maintain the current tax structure, relying on real estate taxes, the per-capita tax and an earned income tax of .5 percent;

--lower taxes on residential real estate and raise the earned income tax (EIT); or,

--lower taxes on residential real estate and implement a personal income tax (PIT).

Currently, the real estate tax generates about 75 percent of the local contribution toward the Cameron County School District's $10.3 million budget.

Under a new state law, school districts can reduce real estate taxes on owner-occupied residences (the "Homestead Exemption") and make up that gap in revenue by raising the EIT, or by instead implementing the PIT.

The difference between the two is that the PIT would be imposed on earned income, as well as interest income, stock dividends and other personal income.

"It's a complex issue that affects nearly everyone," Mitchell said. "The Tax Study Commission is therefore eager to hear from the public before making any recommendations to the school board."