LCSD is suing the board of supervisors over a budget dispute

LOWNDES COUNTY, MISS. (WCBI) – The Lowndes County School District is now suing the board of supervisors over a budget dispute.

School board members claim they should have been allowed to add three point five million dollars in ad valorem taxes on the new property in their budget.

County leaders disagreed over the definition of what constitutes new property and declined the request.

The main issue boils down to a fee in lieu. This is a tax break the county gives businesses and industry to lure them to the area.

The school says once that fee in lieu agreement is done then that business becomes new property on the county’s tax roll.

Supervisors contend businesses are paying a third of their assessed property taxes during the fee in lieu and once that agreement is done the business will pay its full share of property taxes.

Because of that one-third payment, county leaders say that means the business should not be considered a new property.

The school district’s budget request came with a tax increase based on their new property numbers and would not require a vote.

If the school district wants to raise the millage more than seven mills, it must hold a referendum for voters to decide.

This is based on how much new real property is on the tax rolls.