Logan County residents could see new Nickel Tax

LOGAN COUNTY, Ky. – Logan County residents could be seeing a new tax implemented to help Logan County schools generate more money to take care of their existing schools and build new ones.

The nickel tax, as it’s called, would greatly improve the amount of funds available to LCPS money that is much needed for taking care of schools like Auburn Elementary that needs to be replaced. Superintendent of Logan County Schools Dan Costellow says this tax would mean the difference between a new school in two years and a new school in 10 years.

“If we did not do this, it would take us ten years to get the bonding capacity that we would need in order to build this school. Right now, Auburn is old enough that the state will not allow us to build on to it. It will not allow us to renovate it. We can’t make any substantial improvements to it because of the age of the building. So the only thing we can do is build a new building,” Costellow said.

And while a new tax does sound intimidating, property owners in Logan County have enjoyed some of the lowest property tax rates in the state. Costellow says this new tax would not move the needle all that much in terms of money out of property owners wallets.

“Logan County residents have been fortunate for many decades to have a very low tax rate. Our tax rate ranks 151st out of 171 school districts in Kentucky, which puts us in the bottom 12%. And so, while it is an increase, we’re still going to be far behind most districts in the amount of revenue that we collect. This will take us from about 151 up to about 130, 171 districts. So again, still relatively low when you look at districts around the state and what they’re taking in,” Costellow said about Logan County property taxes.

Even though property taxes would go up, the Logan County School Board did not take this decision lightly, taking the necessary steps to provide the best for Logan County students.

“Our Board of education is made up of five individuals who are elected by the community. They’re elected by taxpayers and voters in the community. And so they represent them. And so this decision wasn’t taken lightly. They’re taxpayers. Two and so these elected officials, they see the need and they agree that there’s a need. And they believe that this is the best thing for our children, both now and in the future,” Costellow added.

Costellow also mentioned that this nickel tax will only increase for Logan County residents and that residents of Russellville will not be subjected to this new tax. Logan County schools recognizes that this could be confusing and frustrating for some Logan County residents.

A website has been created to help residents understand the nickel tax better. To check out that website click here.