MCCSC Tax Levey to affect IU area housing

Students could help foot the bill for the $7.5 million needed by the Monroe County Community School Corporation Tax Levy Referendum.

On Nov. 2, the referendum passed by 61 percent and will be paid for by an additional 14 cents in property taxes per $100 of assessed value during the next six years.

“The property owner is responsible for all property taxes,” Amy Gerstman, Monroe County auditor, said. “But students will undoubtedly see an increase in rent when these taxes are passed down.”

Since many rental agencies promise tenants that their rental rates will not increase during the term of their lease, most renters will not see an increase until next year.

Students living on campus, however, will not be affected by the tax levy because residence halls are considered state-owned educational buildings.

“Any buildings at IU that produce income, which are mostly owned by the IU Foundation, are not exempt from paying property taxes,” Gerstman said. “But anything owned by the Board of Trustees are exempt because they are educational facilities.”

Sara Ivey Lucas, assistant director of housing assignments for Residential Programs and Services, confirmed there has been no discussion yet about RPS rate increases.

Margaret Steward, a biology graduate student who rents property off campus, said even if her rent increases by $25 a month, she is still glad the referendum passed.

“That’s just like five cups of coffee from Starbucks,” Steward said. “I moved here from a town where tax levies were hard to pass, so I’m just happy to see that the teachers get to stay and the buses can keep running.”

Dobrin Bossev, an assistant professor in the physics department and a property owner, was not as pleased as Steward to find that the referendum had passed.

“Don’t get me wrong, I believe in a strong education because knowledge and competition are important,” Bossev said. “But property taxes are just not the way. I have this feeling that when house values and education are related, it creates pockets of good schools with good houses and bad houses with bad schools. This will facilitate that process.”

Bossev recognized that the property tax increase is imposed for the entire school system and is temporary but said he still finds the initial concept a little strange.

Bossev is the father of two small children, neither of whom attend an MCCSC school, and was not convinced that he should carry the burden of the referendum.

“Why should I pay when I’m not really in that basket?” Bossev said.

Erika Lee, communications director of the University Graduate School, could think of a few reasons.

“Supporting education is not about you. It’s not about just people with children in grade school,” Lee said. “Making sure we have good schools with varied opportunities for children in them means a better educated, well-rounded cohort of young adults.”

Rileigh Ammerman, a sophomore majoring in education, agreed. Ammerman supported the referendum and said she is more than willing to pay more in taxes.

“If there is one thing people should not complain about paying higher taxes for, it is education,” Ammerman said. “After all, these children are the future, and we should always invest in the future.”