Houston County School Tax Benefits

State-wide Alabama property owners will see an increase in their property taxes.

Tuesday voters decided state law would require Alabama school districts to provide at least 10 mils in property tax to support their schools

News 4 spoke with Dothan city and Houston County officials about the move, and how much money will be generated from the increase.

A new bill gives residents an increased i mileage rate on their property taxes. It will add an additional 2 mils, so state-wide everyone can be on the same page.

Before, Houston County and the city of Dothan were in the small percentile of the state for governments that pay 10 mils directly to the school system.

Instead, government officials had to pay an equivalent of the mils by making it up through sales tax or alternate funding.

Through sales tax, Houston County gave its school system about half a million, while annually the city of Dothan granted its schools about 2.8 through earmarked funds.

However, officials say the likelihood of that cash flow stopping because of the new increase mileage rate, well, isn't likely.

Houston County’s Revenue Commission predicts the new increase will generate more than $990,009 for the county school system and about $1.2 million for Dothan city schools.

Nichols says by personnel he means adding more teachers. Dr Nichols says before any moves are made, they'll have to come up with a financial budget, prioritize their needs then present the findings to the city school board for approval.

Residents won't see the changes on their property taxes bills until October 2007.

That's when the money will be given to the school system. Property owners have until Dec. 31 to pay their property tax.