setting the tax rate - mcsa · link for the 2017 tax rate procedure memo; and! 2. link to sao...
TRANSCRIPT
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Setting The Tax Rate!Sponsored by: !MASA & MoASBO!!!Presenters: !Kari Monsees!
! ! !Linda Quinley!
© Copyright 2017 MASA & MoASBO!
Today's Agenda!
n Lunch!n Overview!n State Auditor Forms!n State Assessed Railroad & Utilities
& Proposition C Rollback!n Conducting a Tax Rate Hearing and Public Notice!n Additional School Finance Assistance!
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Additional Assistance!n State Auditor’s Office:
Jill Wilson 573-751-4213!
n State Tax Commission:Rosella Schad 573-751-1729!
!
Review Contents of Packet!n Presentation slides!n Tax Rate & Reassessment History!n CPI Report (DESE)!n SARRU % Change (DESE)!n Estimated SARRU Revenue (DESE)!n Sample SAO Calculation Forms!n Sample Estimate of Required Local Taxes!n Sample Hearing Notice Calculator (MASA)!n Sample Hearing Notices!
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State Auditor Forms!n Fifth year of submitting data online to do
calculation.!n Around July 6, you received an email
from [email protected] containing:!1. Link for the 2017 Tax Rate Procedure
Memo; and!2. Link to SAO online system with user name
and password.!
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State Auditor Forms!The SAO email provides a link to the online calculator for this year’s property tax rate calculation. Linda Quinley will go through that process later in the program. We will go through the forms so that you understand the process. It is recommended that you complete the calculation on the SAO excel worksheet as a check before entering data into the online calculator. When you do the online calculation, within one or two days there is a link on the calculator page to print out the paper forms. Those forms need to be submitted to your county clerk(s). !
State Auditor Forms!n This is a reassessment year. If you have a
voluntarily reduced tax rate, you can not recover any of your voluntary reduction this year.!
n This option will be available next year because it is a non-reassessment year. If your district wants to recover all or any portion of your voluntary reduction in 2018, your board of education will need to adopt a resolution recovering the reduction next summer prior to completing your 2018 SAO tax rate forms. !
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State Auditor Forms!n Tax Rate Summary Page!n Line A - Prior Year Tax Rate Ceiling
or Voluntarily Reduced Rate.!n Line E - Maximum Authorized Levy!
(This is the highest operating tax rate ceiling approved by your district’s voters since 1984 or the 1984 operating tax rate ceiling.)!Unless your district approved a tax rate increase since September of 2016, Line E will be the same as last year.!
XYZ School District Assessed Value Notice From ABC County Clerk!Real Estate - Residential !$3,760,000!Real Estate - Agricultural !$1,610,000!Real Estate - Commercial !$2,430,000!Personal Property !$1,860,000 !
Railroad and Utility!Local Real Estate !$500,000!Local Personal !$145,000!Total !$10,305,000!!Real Estate New Construction & Improvements: !$30,000
!!!!
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State Auditor FormsForm A!1. Current Year 2017 Assessed Valuation (a) $8,300,000 + (b) $2,005,000 = $10,305,000 (Real Estate) (Personal Property)!Real Estate - Residential !$3,760,000 Real Estate - Agricultural !$1,610,000 Real Estate - Commercial !$2,430,000 Personal Property ! !$1,860,000 Railroad and UtilityLocal Real Estate ! !$500,000 Local Personal ! ! !$145,000!
State Auditor FormsForm A!
5. Prior Year 2016 Assessed Valuation (a) 8,000,000 + (b) 2,000,000 = $10,000,000 (Real Estate) (Personal Property)!(Enter last year’s assessed value as most recently revised and approved by SAO.)!
1. Current Year 2017 Assessed Valuation (a) $8,300,000 + (b) $2,005,000 = $10,305,000 (Real Estate) (Personal Property)2. Assessed Valuation of New Construction and Improvements(a) $30,000 + (b) = _________ (Real Estate) (Personal Property)!
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State Auditor FormsForm A!
5. Prior Year 2016 Assessed Valuation (a) 8,000,000 + (b) 2,000,000 = $10,000,000 (Real Estate) (Personal Property)!
1. Current Year 2017 Assessed Valuation (a) $8,300,000 + (b) $2,005,000 = $10,305,000 (Real Estate) (Personal Property)!
2. Assessed Valuation of New Construction and Improvements(a) $30,000 + (b) $5,000 = $35,000 (Real Estate) (Personal Property)!
State Auditor FormsForm A!
If a boundary change has been approved by voters:!A. If a district has added territory,
complete line 3;!B. If a district has lost territory,
complete line 6.!
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State Auditor FormsForm A!
If the assessor or county clerk notifies the district that property was locally assessed in the prior year, but is state assessed this year, complete line 7.!
State Auditor FormsForm A!4. Adjusted Current Year Assessed Valuation ($10,305,000 - $35,000)!= $10,270,000!8. Adjusted Prior Year Assessed Valuation $10,000,000!!
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State Auditor FormsForm A!
9. Percentage Increase in Adjusted Valuation (10,270,000-10,000,000) ÷10,000,000 = +2.7% !
10. Increase in CPI ! ! ! 2.1% !
11. Adjusted Prior Year AV ! ! $10,000,000 !
12. Prior Year Tax Rate Ceiling or Voluntarily Reduced rate ! ! ! !$4.00 (Tax Rate Summary page, Line A)!
State Auditor FormsForm A!13. Maximum Prior Year Adjusted Revenue from
Locally Assessed Property (10,000,000 X 4.00) ÷ 100 = !$400,000!
14. Maximum Prior Year Revenue from State Assessed Property ! !$50,000!
(Provided by SAO or See handout in packet from DESE.)!
15. Total Adjusted Prior Year Revenue !(400,000 + 50,000) = ! ! $450,000!
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State Auditor FormsForm A!
16. Permitted Reassessment Growth 2.1%!17. Additional Reassessment Revenue Permitted
(450,000 x 2.1%) = ! !$9,450!18. Total Revenue Permitted in the Current Year
! ! ! ! ! !$459,450!
15. Total Adjusted Prior Year Revenue (400,000 + 50,000) = ! !$450,000!!
State Auditor FormsForm A!
19. Estimated Current Year Revenue from State Assessed Property (before reductions)(See State Tax Commission Report on 2017 County State Assessed percent changes) ! !$50,000!
18. Total Revenue Permitted in the Current Year! ! ! ! ! !$459,450
!
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State Auditor FormsForm A!If STC report shows large percent increase, this could have a significant negative effect on your tax rate. Ten counties have SARRU growth of greater than 10% (Andrew, Clinton, Dekalb, Holt, Marion, Moniteau, Morgan, Nodaway, Platte, & Ray). Anyone interested may stay after the regular workshop to talk about the possibility of converting this new state assessed value into new construction assessed value on line 2.!
State Auditor FormsForm A!If you want to see which utility in your county is responsible for the increase:!!1. www.stc.mo.gov!2. Click on Railroads and Utilities!3. Click on Certifications!4. Click on Certifications by County!5. Enter Year and County!6. Compare 2017 to 2016!
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State Auditor FormsForm A!If STC report shows large percent decrease, may indicate state assessed last year and locally assessed this year. Check with county clerk and assessor to verify that this new locally assessed utility property is included in their reported new construction and improvements. (Line 2)If you use a smaller number on Line 19 than Line 14 you need to explain in writing to SAO (Jill Wilson) that STC report shows a decrease in assessed value for your county.!
State Auditor FormsForm A!Line 19 is an estimate on your part. The SAO will calculate tax rates next July and notify you if changes to your tax rate for the next year are necessary because of final state assessed values.!
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State Auditor FormsForm A!
20. Revenue Permitted from Existing Locally Assessed Property! ! ! $409,450 ($459,450-$50,000 = $409,450)!
21. Adjusted Current Year Assessed (Line 4)! ! ! ! ! $10,270,000!
22. Maximum Tax Rate Permitted by Article X, Section 22 and Section 137.073 RSMo (409,450 ÷ 10,270,000) x 100 = $3.9869!
!Calculated Tax Rate Transfers to Summary Page Line B!
INFORMAL TAX RATE CALCULATOR FILE Printed on: 7/19/2017Tax Rate Form A (2017)For School Districts Levying a Single Rate on All Property
XYZ School District 30-123-4567(Name of School District) (School Code) (Purpose of Levy)
1. (2017) Current Year Assessed Valuation Include the current locally assessed valuation obtained from the County Clerk, County Assessor, or comparable office finalized by the local board of equalization.
(a) 8,300,000 + (b) 2,005,000 = 10,305,000(Real Estate) (Personal Property) (Total)
2. Assessed Valuation of New Construction & Improvements2(a) - Obtained from the County Clerk or County Assessor. 2(b) - Increase in Personal Property. Use the formula listed under Line 2(b).
(a) 30,000 + (b) 5,000 = 35,000(Real Estate) Line 1(b) - 3(b) - 5(b) + 6(b) + 7(b) (Total)
If Line 2b is Negative, Enter Zero3. Assessed Value of Newly Added Territory Obtained from the County Clerk or County Assessor.
(a) 0 + (b) 0 = 0(Real Estate) (Personal Property) (Total)
4. Adjusted Current Year Assessed Valuation [Line 1 (Total) - Line 2 (Total) - Line 3 (Total)] 10,270,000
5. (2016) Prior Year Assessed Valuation Include prior year locally assessed valuation obtained from the County Clerk, County Assessor, or comparable office finalized by the local board of equalization. Note: If this is different than the amount on the Prior Year Form A, Line 1, thenrevise the prior year tax rate form to re-calculate the ceiling. Enter the revised prior year tax rate ceiling on this year's Tax Rate Summary, Line A.
(a) 8,000,000 + (b) 2,000,000 = 10,000,000(Real Estate) (Personal Property) (Total)
6. Assessed Value of Newly Separated Territory Obtained from the County Clerk or County Assessor.
(a) 0 + (b) 0 = 0(Real Estate) (Personal Property) (Total)
7. Assessed Value of Property Locally Assessed in Prior Year, but State Assessed in Current YearObtained from the County Clerk or County Assessor.
(a) 0 + (b) 0 = 0(Real Estate) (Personal Property) (Total)
8. Adjusted Prior Year Assessed Valuation [Line 5 (Total) - Line 6 (Total) - Line 7 (Total)] 10,000,000
Operating Funds
Computation of reassessment growth and rate for compliance with Article X, Section 22 and Section 137.073, RSMo.
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For Political Subdivision Use in
Calculating its Tax Rate9. Percentage Increase in Adjusted Valuation of existing property in the current year over the prior year's assessed valuation.
[(Line 4 - Line 8) / Line 8] x 100 2.7000%10. Increase in Consumer Price Index as certified by the State Tax Commission. 2.1000%11. Adjusted Prior Year Assessed Valuation (Line 8) 10,000,00012. (2016) Tax Rate Ceiling from Prior Year (Tax Rate Summary Page, Line A) 4.000013. Maximum Prior Year Adjusted Revenue from Locally Assessed Property that existed in both years.
[(Line 11 x Line 12) / 100] 400,00014. Maximum Prior Year Revenue from State Assessed Property (before reductions)
Provided by the Department of Elementary & Secondary Education. 50,00015. Total Adjusted Prior Year Revenue (Line 13 + Line 14) 450,00016. Permitted Reassessment Revenue Growth The percentage entered on Line 16 should be the lower of the actual growth (Line 9),
the CPI (Line 10), or 5%. A negative figure on Line 9 is treated as a zero for Line 16 purposes. Do not enter less than 0, or more than 5%. 2.1000%
17. Additional Revenue Permitted (Line 15 x Line 16) 9,45018. Total Revenue Permitted in Current Year from property that existed in both years. (Line 15 + Line 17) 459,45019. Estimated Current Year Revenue from State Assessed Property (before reductions) The school district should use its best
estimate. (i.e. same amount as Line 14, current year's Line 14 multiplied by the percentage increase in state assessed valuation per the State Tax Commission, or using the best educated guess). If this amount declines substantially from the amount on Line 14, provide written documentation to explain the reasons for such difference. 50,000
20. Revenue Permitted from Existing Locally Assessed Property. * (Line 18 - Line 19) 409,45021. Adjusted Current Year Assessed Valuation (Line 4) 10,270,00022. Maximum Tax Rate Permitted by Article X, Section 22 and Section 137.073 RSMo. [(Line 20 / Line 21) x 100]
Round a fraction to the nearest one/one hundredth of a cent. Enter this rate on the Tax Rate Summary, Line B. 3.9869
* To compute the total property tax revenues BILLED for the current year (including revenues from all new construction & improvements & annexed property), multiply Line 1 by the rate on Line 22 and divide by 100. The property tax revenues BILLED would be used in estimating budgeted revenues.
Information on this tab takes into consideration any voluntary reduction(s) taken in previous even numbered year(s). If in an even numbered year, the political subdivision wishes to no longer us the lowered tax rate ceiling to calculated its tax rate, it can hold a public hearing and pass a resolution, a policy statement, or an ordinance justifying its action prior setting and certifying its tax rate. The information on the Informational Tax Rate Data tab provides the rate that would be allowed had there been no previous voluntary reduction(s) taken in an even numbered year(s).
State Auditor FormsSummary Page!A. Prior Year Tax Rate Ceiling (Or Prior Year Voluntarily Reduced Tax Rate) ! ! ! ! !4.0000
!!B. Current Year Rate Computed ! !3.9869!C. Use only if tax rate election has occurred since September 1, 2016 or Board of Education uses Amendment 2 to raise rate to $2.75.!!D. Rate to compare to Maximum Authorized Levy 3.9869!
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State Auditor FormsSummary Page!E. Maximum Authorized Levy ! ! !4.0000! (If no election)!!!
F. Current year tax rate ceiling ! ! 3.9869!(Lower of Line D or E)!
State Auditor FormsSummary Page!
G1. Use only if district still makes a Proposition C rollback.!
G2. Probably not applicable to any district. !H. Voluntary reduction by school district.(Use only if district wants to voluntarily reduce Line F.)!
I. Allowable recoupment rate. (If applicable). !J. Tax rate to be levied. ! ! ! !3.9869
(Again, if district decides to recover all or a part of the voluntary rollback next year, a copy of the Board minutes must be sent to SAO prior to filing out the tax rate forms in 2018.)
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INFORMAL TAX RATE CALCULATOR FILE Printed on: 7/19/2017Tax Rate Summary (2017)For School Districts Levying a Single Rate on All Property
(Name of School District) (School Code) (Purpose of Levy)
For Political Subdivision Use in
Calculating its Tax Rate
A.
4.0000B.
3.9869C.
Date the School Board Decided to Use Amend. 2 (if using Amend 2). D.
3.9869E. Maximum Authorized Levy Greater of the 1984 rate or most recent voter approved rate.
[Greater of Prior Year Line E or Current Year Line D (if there was an election), otherwise Prior Year Line E] 4.0000F. Current Year Tax Rate Ceiling (Lower of Line D or E) Maximum legal rate to comply with Missouri laws. 3.9869
G1.
G2.
H. Less Voluntary Reduction By School District taken from Tax Rate Ceiling (Line F).
I. Plus Allowable Recoupment Rate added to Tax Rate Ceiling (Line F). If applicable attach Form G or H.J. Tax Rate To Be Levied (Line F - Line G1- Line G2 - Line H + Line I) 3.9869
AA. Rate To Be Levied For Debt Service if applicable (Form C, Line 12)BB. Additional Special Purpose Rate Authorized By Voters After the prior year tax rates were set. Greater of the voter
XYZ School District 30-123-4567 Operating Funds
Prior Year Tax Rate Ceiling as defined in Chapter 137, RSMo. Revised if the prior year data changed or a voluntary reduction was taken in a non-reassessment year. (prior year Tax Rate Summary, Line F minus Line H in odd numbered year or prior year Tax Rate Summary, Line F in even numbered year)
NOTE: THIS IS AN INFORMAL TAX RATE CALCULATOR FILE INTENDED FOR POLITICAL SUBDIVISION PRELIMINARY CALCULATIONS ONLY. THIS FILE IS NOT INTENDED TO BE USED BY THE POLITICAL SUBDIVISION TO SUBMIT THEIR TAX RATE TO THE COUNTY.
[Line B (if no election), otherwise Line C (if there was an election)]
Current Year Rate Computed Pursuant to Article X, Section 22 of the Missouri Constitution and Section 137.073, RSMo if no voter approved increase. (Tax Rate Form A, Line 22)
Less Required Proposition C (Sales Tax) Reduction taken from Tax Rate Ceiling (Line F), if applicable. Circle the type of waiver your district has Full Partial NoAttach a copy of the DESE Prop C Reduction Worksheet if there is no waiver.
ONLY THE PROFORMA PRINTED FROM THE STATE AUDITOR'S ON-LINE TAX RATE SYSTEM SHOULD BE SUBMITTED TO THE COUNTY TO SET THE FINAL TAX RATE. CONTACT THE STATE AUDITOR'S OFFICE IF YOU HAVE MISPLACED YOUR USER ID AND/OR PASSWORD.
approved increase or voter approved increase adjusted to provide the revenue available if applied to prior year assessment & increased by CPI%. (Tax Rate Form B, Line 16 if a different purpose)
Less 20% Required Reduction for 1st Class Charter County School District NOT Submitting an Estimate Non-Binding Tax Rate to the County(ies) taken from Tax Rate Ceiling (Line F).
The information to complete the Tax Rate Summary is available from prior year forms, computed on the attached forms, or computed on this page. Information on this page takes into consideration any voluntary reduction(s) taken in previous even numbered year(s). If in an even numbered year, the political subdivision wishes to no longer use the lowered tax rate ceiling to calculate its tax rate, it can hold a public hearing and pass a resolution, a policy statement, or an ordinance justifying its action prior to setting and certifying its tax rate. The information on the Informational Tax Rate Data at the end of these forms provides the rate that would be allowed had there been no previous voluntary reduction(s) taken in an even numbered year(s).
Amount of Rate Increase Authorized by Voters (If Same Purpose) Greater of the voter approved increase or voter approved increase adjusted to provide the revenue available if applied to the prior assessment & increased by the CPI%. (Tax Rate Form B, Line 16) ORIncrease to the total operating levy up to $2.75 per Amendment 2, if applicable.
NOTICE: A VOLUNTARY REDUCTION TAKEN IN AN EVEN-NUMBERED YEAR WILL LOWER THE TAX RATE CEILING
Rate to Compare to Maximum Authorized Levy to Determine Tax Rate Ceiling
FOR THE FOLLOWING YEAR
State Auditor FormsForm B!If voters approved a levy increase in your
district since September 1, 2016, you will need to complete Form B. !
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State Auditor FormsForm B!1. Date of Election!2. Ballot language!3. Election Results!4. Expiration Date if any!5. Proposition C Waiver!6. Amount of increase or rate approved by voters! Lines 7-17 Calculation to adjust new tax rate
Enter on Line C of Tax Rate Summary Page (Use now instead of Line B)!
!!
State Auditor Forms - Form CApplicable it district has an active Debt Service fund.!1. Total current year assessed valuation !$10,305,000!2. Amount required to pay debt service requirements
during the next calendar year (Jan 18 - Dec 18) !$50,000!3. Estimated costs of collections and anticipated
delinquencies !$2,500!4. Reasonable reserve up to on year's payment !$45,000!5. Total required for debt service !$97,500!6. Anticipated balance at end of current calendar year !$25,000!7. Property tax revenue required for debt service !$72,500!8. Estimated revenue from state assessed property for debt
service for the next calendar year (Jan - Dec) !$5,500!9. Revenue required from locally assessed property for
debt service !$67,000!
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State Auditor FormsForm C!9. Revenue required from locally assessed property for
debt service !$67,000!10. Computation of debt service tax rate
(62,000 ÷ 10,305,000) x 100 !.6502!11. Less Voluntary Reduction By School District !.0502!12. Actual rate to be levied for debt service purposes !.6000!
State Auditor FormsSummary Page!
AA. Rate to be Levied for Debt Service ! ! .6000! !
INFORMAL TAX RATE CALCULATOR FILE Printed on: 7/19/2017Tax Rate Form C (2017)For School Districts Levying a Single Rate on All Property
XYZ School District 30-123-4567 Debt Service(Name of School District) (School Code) (Purpose of Levy)
Debt Service Calculation for General Obligation Bonds Paid for with Property Taxes
1. Total current year assessed valuation obtained from the County Clerk or County Assessor(Tax Rate Form A, Line 1 Total) 10,305,000
2. Amount required to pay debt service requirements during the next calendar year(i.e. Assuming the current year is Year 1, use January - December (Year 2) payments to completethe (Year 1) Form C.) Include the principal and interest payments due on outstanding generalobligation bond issues plus anticipated fees of any transfer agent or paying agent due during thenext calendar year. 50,000
3. Estimated costs of collection (collector fees & commissions and Assessment Fund withholdings) and anticipated delinquencies Experience in prior years is the best guide for estimating un-collectible taxes. (Usually 2% to 10% of Line 2 above) 2,500
4. Reasonable reserve up to one year's payment(i.e. Assuming the current year is Year 1, use January - December (Year 3) payments to completethe (Year 1) Form C.) It is important that the Debt Service Fund have sufficient reserves to prevent any default on the bonds.Include payments for the year following the next calendar year accounted for on Line 2. 45,000
5. Total required for debt service (Line 2 + Line 3 + Line 4) 97,5006. Anticipated balance at end of current calendar year.
Show the anticipated bank or fund balance at December 31st of this year (this will equal thecurrent balance minus the amount of any principal or interest due before December 31stplus any estimated investment earning due before December 31st). Do not add the anticipatedcollections of this tax into this amount. 25,000
7. Property tax revenue required for debt service (Line 5 - Line 6)Line 6 is subtracted from Line 5 because the debt service fund is only allowed to have the payments required for the next calendar year (Line 2) and the reasonable reserve of the following year's payment (Line 4). Any current balance in the fund is already available to meet these requirements so it is revenues required for debt service purposes. 72,500
8. Estimated revenue from state assessed property for debt service for the next calendar year(January – December) - Must be estimated by the school district. In most instances a good estimate would be the same amount as the state assessed revenues actually placed in the DebtService Fund in the prior year. 5,500
9. Revenue required from locally assessed property for debt service (Line 7 - Line 8) 67,000
10. Computation of debt service tax rate [(Line 9 / Line 1) x 100]Round a fraction to the nearest one/one hundredth of a cent. 0.6502
11. Less Voluntary Reduction By School District 0.050212. Actual rate to be levied for debt service purposes * (Line 10 - Line 11)
Enter this rate on Line AA of the Tax Rate Summary Page. 0.6000
* The tax rate levied may be lower than the rate computed as long as adequate funds are available to service the debt requirements.
The tax rate for Debt Service will be considered valid if, after making payment(s) for which the tax was levied, the bonds remain outstanding, and thedebt fund reserves do not exceed the following year's payments. Since property taxes are levied and collected on a calendar year basis (January -December), it is recommended that this levy be computed using calendar year data.
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State Auditor FormsSummary Page!
Complete rest of Summary page if:!n Election held since Sept. 1 2016 (Line C)!
n Line B is less than 2.75 AND Board of Education adopts Resolution to raise levy to $2.75 (Amendment 2)!
n Proposition C is not waived (Line G1) (Circle appropriate waiver: full, partial, or no)(If there is a Proposition C reduction, a copy of the Prop C worksheet needs to be sent to SAO.)!
Linda Quinley!n Chief Financial and Operations Officer for
Kansas City Public Schools!
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Other Items To Complete!n Public Notice of Hearing Requirement
(At least 7 days prior to public hearing)!n Public Hearing !
n (Best to schedule Mid-August or later. If district is in a charter county, Mid-September or later.)!
n Board of Education votes to set tax rate!
Other Items To Complete!n After data entered into SAO calculator, within
one or two days, you will be able to choose a link on calculator screen to get paper forms that can be printed. Use this form to submit to County Clerk(s) along with Estimate of Required Local Taxes.!
n Process must be completed by Sept. 1 Except: Charter counties - October 1.!
n Amend budget with Board if appropriate.!
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Tax Rate Hearing Notice!n District is required to show additional revenue
from new construction and reassessment separately.!
!n District is required to show percent of additional
new revenue from reassessment.!!
Tax Rate Hearing Notice!1. New Revenue: !New A.V. x Tax Rate. minus Old A.V. x Tax Rate!(10,305,000 x 3.9869) ÷ 100 = !$410,850!(10,000,000 x 4.0000) ÷ 100 = !$400,000! New Revenue !$10,850
!!!
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Tax Rate Hearing Notice!1. New Revenue: !$10,850!2. Revenue from New Const. & Improv.
A.V. from New Const. x Tax Rate ÷ 100!(35,000 x 3.9869) ÷ 100 = $1,395!
Tax Rate Hearing Notice!1. New Revenue: !$10,850!2. Revenue from New Const. !$1,395!!3. Revenue from Reassessment: !!New revenue - Revenue from New Const.
$10,850 – $1,395 = !$9,455!
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Tax Rate Hearing Notice!1. New Revenue: !$10,850!2. Revenue from New Const.: !$1,395!3. Revenue from Reassessment: !$9,455!4. Percent Increase from Reassessment:!Rev. from Reassessment ÷ Old Rev. x 100!(9,455 ÷ 400,000) x 100 = 2.36%!This information is included in public
hearing notice. (See example Tax Rate Hearing Notice)!
!
Tax Rate Hearing Notice!If an operating tax rate increase has been
approved since September 1, 2016 by voters, this calculation changes.!
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Example: District voters passed a 20 cent operating tax rate increase in April, 2017!
New revenue 10,305,000 x 4.20 ÷ 100 = !$432,810!Old Revenue 10,000,000 x 4.00 ÷ 100 = !$400,000!New Revenue: !$32,810!Rev. from New Const. 35,000 x 4.20 ÷ 100 = !$1,470!Rev. from Tax Change $10,305,000 x .20 ÷ 100 =!$20,610!!Revenue from Reassessment: !New Revenue $32,810!! !Revenue from New Construction -$1,470!! !Revenue from Tax Change -$20,610
!$10,730 !!
Example: District voters passed a 20 cent operating tax rate increase in April, 2017!
Percent Increase from Reassessment!!Rev. from reassessment ÷ Old Rev. x 100:!!10,730 ÷ $400,000 x 100 = 2.68%!
!! !
!
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Tax Rate Hearing Notice!Excel calculator will help you calculate:!
New Revenue from New Construction and Improvements !New Revenue from Reassessment !Percentage of New Revenue from Reassessment !
!Available on the MASA website at
www.masaonline.org and scroll over the Resources tab and then select Finance from the drop down.!
Line Data Column C Calculation
2 Current Year Assessed Valuation (Form A -‐ Line 1) 10,305,000$ 3 Current Year Operating Tax Rate (Summary -‐Line J) 3.9869$ 4 Current Year Revenue 410,850$ [=(L2*L3)/100]5
6 Amount of Operating Tax Increase approved either by voters or Board of Education since September 1, 2016.
-‐$
78 Previous Year Assessed Valuation (Form A -‐ Line 5) 10,000,000$ 9 Previous Year Operating Tax Rate (Summary -‐ Line A) 4.0000$ 10 Previous Year Revenue 400,000$ [=(L8*L9)/100]1112 Additional Revenue Due to Increase In Voter Approved Tax Rate -‐$ [=(L6*L2)/100]13
14 New Construction And Improvements Assessed Value in Current Year (Form A Line 2)
35,000$
151617 New Revenue 10,850$ [=((L2*L3)/100)-‐((L8*L9)/100)]18 New Revenue minus voter approved revenue 10,850$ [=L17-‐L12]19 New Revenue Due To New Construction 1,395$ [=(L3*L14)/100]21 New Revenue Due to Reassessment 9,455 [=IF(L6=0,L17-‐L19,L18-‐L20)]2223 Percent Increase Due to Reassessment 2.3638% [=(L21/L10)]24
25 Public Hearing Notice Information26 New Revenue from new Construction and Improvements 1,395$ [=L19]27 New Revenue from Reassessment 9,455 [=L21]28 Percentage of new Revenue from Reassessment 2.3638% [=L23]
Tax Rate Hearing Notice Calculator
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Voter Approved Tax Rate Issues!If your district has a $2.75 tax rate, do you
know why?!!Example: Tax rate ceiling is $3.00 with a
50-cent Proposition C rollback interrupted at $2.75.!
Possible Scenario!District with a $3.00 tax rate ceiling with a
50¢ Proposition C rollback interrupted at $2.75 needs a 50¢ levy increase.!
!District must ask citizens to increase
tax-rate ceiling to $3.75.(3.75 - 50¢ Prop C Rollback = $3.25) OR!
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Possible Scenario!District must ask citizens to increase
tax-rate ceiling to $3.25 and fully waive Prop C rollback.!
!
Reminder!Send the county clerk(s):!1. Completed SAO forms!2. Estimate of required local taxes
(Sample form included in packet)!!Send to State Auditor’s Office:!1. Submit tax rate calculations electronically.!!Public Notice of Hearing Requirement
(At least 7 days prior to public hearing)!!
7/25/17
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Questions?!Additional Assistance:!!MASA School Finance Consultants!!!Call Doug Hayter at MASA to arrange visit!
573-638-4825 ! !!!