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Lebanon schools project nearly 11¢ drop in 2026 tax rate, administrators warn SEA 1 will bite later
Summary
District officials said the certified 2026 tax rate will publish at 86.57, nearly 11¢ below 2025, largely because of assessed‑valuation growth and one‑time levy shifts; they cautioned Senate Bill 1 will exert downward pressure on future valuations starting in 2027.
Lebanon Community School Corp officials told the school board that the district’s certified tax rate for 2026 will publish at 86.57, a decline of nearly 11 cents from the 2025 rate of 97.28.
“Happy to report to the board that our tax rate will be almost 11¢ lower than last year,” finance lead Mister Dennis said, explaining the drop is driven by booming assessed valuation and a $200,000 net levy reduction related to long‑accumulated cash balances in debt funds and statutory limits on cash reserves.
The administration cautioned the decline is unlikely to persist. “This tax rate in the eighties is not to be expected for budget year 2027,” Mister Dennis said, warning that Senate Bill 1 (referred to in the meeting as SEA 1) will gradually lower net assessed valuation over a five‑year phase‑in beginning in 2027 and could require higher levies later to maintain services.
Board members asked how Lebanon compares with nearby districts and whether overlapping TIF districts will offset the change. Mister Dennis said the district’s mixed parcel base — residential, commercial and industrial — lessens the immediate impact of the $300 homeowner credit under SEA 1, but he flagged a pending 20‑year TIF expiration at Lebanon Business Park in 2027 that could return additional assessed valuation to the tax base and partially offset SEA 1 effects.
The administration framed the published 2026 rate as a short‑term benefit that could reverse as state policy and local assessed valuations evolve. No formal action beyond the financial briefing was required at the meeting.
