How does the plan impact non-residential taxpayers?
In the bill we have 50% of the grant coming from broad-base taxes and 50% from the non-residential property taxes. The grant is set at 85% of the prior year average per-pupil spending. We believe that the non-residential rate should stabilize even in a soft real estate market. A reduction of the rate and the bill could be realized in a strong real estate market with the addition of .Sticks & Bricks.. In the long term, non-residents will benefit, since residential taxpayers will have greater visibility and control over spending that will have a direct impact on the residential rate. In other words, because there it will be easier for residential taxpayers to hold the line on spending, overall education spending should start to level off, staving off increases to the non-residential rate.
