Expect property taxes to increase

Call it trickle-down economics in reverse.

As federal budgets get tighter, less money gets sent to state and local governments, which often results in higher taxes. And that’s exactly what is going on in Lincoln County, where residents will be required to pay more to support local schools during the coming year. 

The owner of a home valued at $150,000 in Lincoln County will pay about $25 more in school taxes with next May’s tax bill to make up for the loss of about $4 million in federal funding that the county received annually as part of the Secure Rural Schools Act, according to figures compiled by the county Treasurer’s Office. One-third of that federal funding, about $1.35 million, was earmarked for the three school districts in Lincoln County; the county typically used most of the remaining money for road improvements. 

Without that money, local taxes will have to go up to support the school system. 

“It is necessary, as there is no other way to fund it,” said Ron Higgins, the county superintendent of schools.

Kirby Maki, superintendent of the Libby School District, said the school district has no choice in the matter.

“We don’t have any control over that,” he said. “People will have to be taxed.”

The amount of additional property tax that will be levied during the coming year will be determined by the assessed value of each home. The tax increase represents 12 mills; in 2012, the value of a mill was $36,006. Overall, the tax increase will raise an estimated $450,000 each year. 

Tony Berget, the presiding county commissioner, said he isn’t happy about the tax increase. However, he said it could have been worse.

“That is less (than previous estimates),” he said. “I had heard it would be much more.”