Local property taxpayers would have to pay more if Kentucky eliminates a tax on a company’s inventory kept within the state.

That’s at least one possible consequence of repealing Kentucky’s inventory tax without careful consideration, according to local school district officials who receive a chunk of their funding through revenue the tax generates.

In a video shown at a Kentucky Chamber of Commerce tax summit, Gov. Matt Bevin supported repealing the inventory tax, which he described as part of an “antiquated” approach to taxation “where we tax production and not consumption.”

Repealing the tax could improve commerce, Bevin said, but it also shouldn’t be repealed without considering the consequences the move could have on local jurisdictions. That sentiment was echoed by Superintendent Gary Fields of the Bowling Green Independent School District. Fields said it could shift the tax burden on the local level away from businesses.

“Instead of them paying that tax it would ultimately fall to property owners,” he said, adding that school districts would raise property tax rates to make up for the lost revenue.

The inventory tax is a part of local property valuation, and Fields said it makes up about 8.6 percent of the local tax revenue his school district receives.

Chris McIntyre, chief financial officer for Warren County Public Schools, said he’s contacted the Warren County Property Valuation Administrator Office for how much revenue the inventory tax brings into his school district.

“They’re working on trying to supply me with that number,” he said.

He echoed the sentiment that repealing the inventory tax would penalize local property taxpayers by forcing school districts to raise property taxes.

“It could be fractionally higher, it could be significantly higher, it really depends on how much inventory is quantified within that county,” he said.

Fields said his school district wants to be a partner in helping to improve the local economy.

“We want to be a partner in that process, but any of these actions in isolation could cause unintended consequences,” he said.

For Fields, repealing the tax would be another step in shifting the burden of funding public education away from the state to the local level. This could put increased strain on local communities, Fields said, especially communities with declining economies.

“That’s been the struggle for school boards to maintain outstanding programs for students with the state revenue continuing to decline or to stay flat,” he said.