By Jamie DeRosa
Entirely East Lansing
The board of education in East Lansing has approved to collect all 100 percent of the school property taxes in the summer tax levy for the 2015 – 2016 school year. This change keeps with the tradition that East Lansing has carried for years.
The idea of collecting all the taxes at once is different from the way things are done in some other districts where school property taxes are spread out throughout the year. Taxes, if not paid all at once, are generally cut in half and paid in two intervals, one for the winter, which has a deadline in February, and one for summer, which ends in September.
“The 100 percent summer tax levy benefits the district’s cash flow and thus lessens the need to borrow early in the school year,” said director of finance for the East Lansing school district Richard Pugh. “In addition, when interest rates are favorable the district can invest funds and earn greater amounts of interest than a 50 percent winter and 50 percent summer levy. Interest rates are horrible currently but the district still benefits from a cash-flow perspective.” Continue reading