Tax relief: no easy answers

Real estate tax relief in local school districts continues to be a vexing proposition, as each district prepares to ask voters which option they would prefer.

A new state law clears the way for school districts to offer a limited “homestead exemption” that reduces real estate taxes for property owners. Voters in each district will be asked in May to approve or reject an alternative to make up for the revenue shortfall.

A committee appointed to study the issue in Cameron County Area School District decided, by a 3-2 vote, to recommend that the school board place on the ballot a .5 percent increase in the district’s earned income tax.

Several other local study commissions have recommended a similar plan to school boards in the region.

Revenue from the higher earned income tax would offset, dollar for dollar, the real estate tax exemptions for owner-occupied homes in the school districts. Commercial property and rental units would not qualify for the exemption.