HILLSBOROUGH — The Hillsborough School District board approved a proposed tax rate of $3.6777 per $100 of assessed valuation for the 2025–26 year, the district announced after a detailed staff presentation on assessed valuations, Hancock Amendment mechanics and long-term revenue impacts.
A district staff presenter told the board and public that assessed valuations in some years rose sharply in the county and that the Hancock Amendment requires districts to lower their tax rates to capture inflation adjustments (staff referred to a CPI/CVI figure of 2.9% in the current certification). The presenter said those mechanics effectively require the district to roll back roughly 6 cents on its operating levy this year and that, since 2018, the operating tax rate ceiling for the district declined from $3.61 to $3.34 — a drop of 27 cents over seven years.
Under the district's proposed rate breakdown, the operating levy (fund 1) was presented at 3.0438 per $100 of assessed valuation and the debt service levy (fund 3) at 0.3339; the district described cent-level adjustments to meet debt-payment obligations. Staff said the proposed total rate is the lowest the district has had in decades and estimated the local revenue to be generated at about $14.4 million under the proposed rate.
The presenter also warned the board and public about a state ballot proposal referenced in the presentation as "Senate Bill 3," saying that if it passes as tentatively expected it would lock assessed valuations at the 2024 numbers. The presenter cautioned that such a lock could have long-term effects on the school district's tax base because assessed values in Jefferson County did not rise in some recent years while other counties experienced higher inflation and valuation growth.
During public comment a resident who identified herself as a Hillsborough parent said, "If we need to raise our tax a little bit to make sure our kids have everything they need, I'm fine with it." The board then opened the tax-rate motion for approval; after discussion the motion to set the proposed rate at $3.6777 per $100 carried by voice vote.
Staff provided several historical examples during the presentation: they said a $300,000 house paid about $2,600.16 in school taxes in 2007 and would pay about $2,096 under the proposed rate, representing an illustrative decrease in school taxes compared with the 2007 example. Staff also encouraged residents to use the Jefferson County property viewer and the district documents included in the board packet to review historical assessed valuations and tax-rate comparisons.
Board materials show the district has used the county-property data and year-over-year comparisons back to 2007 to inform tax-rate decisions and capital planning. The board adopted the proposed rate in open session and the district indicated it will file the rate as required.