With Starkville-Oktibbeha Consolidated School District borrowing $101 million for the new Starkville High School, property owners in the district are set to pay hundreds of dollars more on their next tax bill.
The bond will also hit the books in a year Oktibbeha County taxpayers are bracing for another potential tax increase due to adjustments to the state’s assessment manual. The increases will apply to property values for both homes and commercial buildings to the tune of 20%, considering the last adjustment made in 2021.
District officials remain mum on estimating how substantial the impact might be, but an analysis from The Dispatch, based on the bond terms and available tax information, determined county homeowners could pay about $65 more per $100,000 of fair market property value just to service the high school bond – to say nothing of additional increases to city and county taxes.
According to bond terms approved by the SOCSD Board of Trustees, the bond will be repaid over a maximum of 27 years at an annual interest rate capped at 7%.
New values set by the Mississippi Department of Revenue for appraising building materials will go into effect for the county this year, raising property values while also adding to the tax burden for property owners. The updates, which happen periodically, are intended to better reflect actual costs for construction in Mississippi.
With the adjustment, the value of a mill in the school district would increase from $512,025 this fiscal year to $614,430 next fiscal year, not factoring any organic growth to property values. At that value, the county would need to levy about 6.5 mills annually for the duration of the repayment period.
A mill is used to measure property taxes. A 1-mill increase, for example, would add $10 to a homeowner’s tax bill per every $100,000 of value and $15 per every $100,000 to commercial properties, including rent houses and apartments. A 6.5-mill increase would raise taxes for homes by $65 and commercial properties by as much as $97.50 per $100,000 of value.
That estimation only includes the school bond itself. Increases to SOCSD’s operations budget, as allowed by state law if the board votes to do so, and tax increases from the city and county could exacerbate the increase further.
Assessment impact in the city, county
A separate issue, the tax impact from the school bond would come in addition to any tax increases approved by the city or county, which would also figure in the reassessment since home and business values will rise roughly 20%.
The city or county could adjust their tax rates to mitigate the blow to taxpayers. But if their tax rates remain the same, homeowners could see another increase in taxes ranging from $250 to roughly $600 per $100,000 of its current fair market value before the adjustment, depending on where the property is located and whether they have a homestead exemption, according to figures from Tri-State Consulting Services tax estimate calculator.
So, with current mill rates and the school bond all factored in, the owner of a $100,000 home in Starkville could see their taxes rise by close to $700.
Why is there no bond election?
Tuesday’s decision to borrow $101 million is only the most recent step the district has taken in securing funding for a new high school.
The board initially approved a resolution of intent to borrow up to $87 million in June 2023 for facility upgrades, as outlined in state legislation. That resolution triggered the first window for opposition, giving registered voters in the district three weeks to petition the district for a referendum on the matter. However, no petition was submitted.
The board then voted in July 2023 to borrow $1 million of the $87 million to fund a facilities study, primarily to determine the need for a new high school.
In June 2025, the board increased its total borrowing capacity, declaring intent to issue up to $125 million for the build, a $39 million increase attributed to increasing construction costs. This was the second opportunity for voters in the district to demand a referendum on the bond, requiring a petition signed by at least 20% of the qualified electors in the district.
With no qualifying petition filed at either stage, the board proceeded Tuesday without a public vote, making the $101 million decision the end of a two-year process that never required an election at any point.
McRae is a general assignment and education reporter for The Dispatch.
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