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March 31, 2006
FOLLOW THE MONEY New home taxes buy classrooms, facilities upkeepWHAT IS COLLECTED IN PAHRUMP STAYS IN PAHRUMP; MORE THAN $2.7 MILLION 0N BOOKS
By GINA B. GOOD
Nye County School Superintendent Dr. Rob Roberts explained the one-time $1,600 residential construction tax is applied to each new residential structure - including site-built homes, apartments, duplexes and manufactured homes. "The tax is paid just once," said Roberts. "It is not imposed on existing structures." There is some general confusion about the payment, which is sometimes incorrectly called an impact fee and thought to be paid by developers. It is true the payment was established to mitigate the impact on the school district brought about by new homes adding school-age children to the area. However, it is not a fee paid by developers. It is a one-time tax paid by the homeowner. The confusion lies in the way most homeowners pay the tax. According to Roberts, the residential construction tax is rolled into the cost of each new home by the subdivision developer or homebuilder and the $1,600 is amortized over the homeowner's construction loan. The state does not provide funds for construction of classrooms; to raise money for additional schools, Nevada Revised Statues require school districts to pose the question of funding to the voters. "We are now using funds from a rollover bond that was originally used to construct Rosemary Clarke Middle School and Hafen Elementary," said Roberts. "The money has also been used for repairs and renovations to other schools in Nye County." Another source of revenue comes from Nevada Revised Statue 387331, authorizing counties with fewer than 50,000 residents to impose a residential construction tax for construction, remodeling or building additions to existing school buildings. It is that statute which helps to ensure students in Pahrump don't have double sessions or attend school year round. According to the superintendent, both of those options would negatively impact families, as well as increase teacher cost by 35 percent for added staff. The caveat to NRS 387331 is that the tax money collected from the residential construction tax must stay in the community where it is collected. In other words, the taxes collected from new home construction in Pahrump must stay in Pahrump. From August 2004 to January 2006 (the latest figures available), $2,742,000 has been collected from residential construction taxes for Pahrump schools. For collecting the taxes and distributing the funds, the county retained one percent. Storey and Douglas counties have also enacted the residential construction tax and other Nevada counties are currently working toward getting the tax approved. All of the money collected from the $1,600 tax on each new home in Pahrump was spent for this school term. The school district bought 24 modular classrooms and provided for their setup and infrastructure: plumbing, land preparation, sewer systems, heating and air conditioning systems and the like. Student desks and other classroom furnishings, books and computers, as well as additional teachers, were paid from other funds. "In Pahrump we grew by approximately 450 students over the last school year," said Roberts. To put that number of new students in perspective, 400 to 500 children equal the population of one elementary school. "We grew by the same number of students the year before that (for the 2004-2005 term) and we expect the same growth next year (for the 2006-2007 school term)," Roberts explained. "We obviously need the classroom space." Each modular contains two classrooms - although some of the modular buildings were used for needed office space. "These days a new elementary school costs about $14 million," stated the superintendent. The school district will be opening bids next week from contractors vying to build Floyd Elementary School in southern Pahrump, where most of the valley's new growth is concentrated. The school is slated for completion within 18 months once the contract is awarded. School district personnel and trustees are proactively exploring new building options, including modular construction of a school that is virtually indistinguishable from Hafen Elementary, which was built using traditional methods. The district's construction committee has also successfully negotiated with subdivision developers Beazer Homes and Concordia Delmar. Both subdivisions are located in southern Pahrump. Beazer is developing 586 residential lots and Concordia Delmar is building 833 homes. This month the school district was given the deed for a 12-acre parcel of land to build Floyd Elementary from the two developers. The appraised market value of the land is $1,800,000. "The NRS only requires a developer to set land aside for the school district to purchase at fair market value," said Roberts. "This was a gift. The taxpayers did not pay for it." |
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