Understanding the Tax Calculation. Teddy Dumlao

Transcription

1 Understanding the Tax Calculation Teddy Dumlao

2 What is the relationship between tax rates and tax amounts? What governing board decisions and bond/override election results affect taxes and per pupil funding? If the board adopted a budget lower than the budget limit to maintain the current primary tax rate, how would that impact my property tax bill and the school district? Key Questions

3 Education Income & Sales Tax Equalization Assistance Prop 301 Sales Tax Initiative Primary Levy Bonds, Overrides Property Tax - Primary Property Tax - Secondary

4 Gilbert Property Taxes Roosevelt Property Taxes Disparity of tax rates to support education Heavily reliant on property taxes Disparity of Funding Scottsdale Property Taxes Problems with Old Model

5 Equalize Tax Rates Decrease reliance on property taxes Equalize per-pupil spending a general and uniform public school system 1980 Tax Reforms

6 Property Values and the Levy

7 ARS Qualifying Tax Rate (Truth in Taxation)

8 Full Cash Value (FCV) is a reflection of the market value of your property and consists of land and improvements. Tax year reflects the year the tax bill is calculated and mailed but is based on market conditions of January the previous year Gilbert Median Value increased to $159,000 (That is good news!) Full Cash Value

9 Cash Primary Secondary Total Cash Requirements

10 Primary Tax (-Homeowner Rebate) Secondary Tax $ $ Total Tax $ Gilbert Unified Property Taxes

11 Primary Tax (-Homeowner Rebate) Secondary Tax $ $ Total Tax $ Gilbert Unified Property Taxes

12 Year Median Value Rate Amount 2012 $143, $ $136, $ $159, $ Primary Tax Rate and Amount

13 Number of Students (Average Daily Membership) Weighted to address higher needs like disabilities Teacher Experience Index Transportation Miles Equalization Base

14 Equalization Base Equitable funding Qualifying Levy Portion of the equalization that comes from Local Property taxes as opposed to state funds. The local effort expected to provide equitable student funding for your district Equalization Assistance The state revenue calculation to provide equitable student funding for your district Qualifying Levy Equalization Base Equalization Assistance Equalization Assistance

15 Gilbert Qualifying Levy Equalization Assistance Property Taxes Roosevelt Qualifying Levy Equalization Assistance Property Taxes Scottsdale Cave Creek Property Taxes Qualifying Levy Qualifying Levy Min QTR Equalization Base

16 Gilbert Qualifying Levy Property Taxes Equalization Assistance Budget Limit Budget Limit vs. Adopted Limit

17 Gilbert $5.5M Qualifying Levy Property Taxes Equalization Assistance Additional Cuts Adopted Limit Budget Limit vs. Adopted Limit

18 Higley Mesa Chandler Gilbert Per Pupil Funding

19 Bonds Capital Overrides Primary Secondary Gilbert Property Taxes Equalization Assistance M&O Override Secondary Taxes

20 $5.5M Bonds Capital Overrides Primary Secondary Gilbert Property Taxes Equalization Assistance M&O Override Primary Tax Amount vs Tax Rate

21 Higley Mesa Chandler Gilbert Governing Board Budget Adoption Voter Approval Per Pupil Funding

22 County Portion of Equalization Assistance Primary and Secondary Taxes Homeowner s Rebate Your Tax Bill

23 Tax Comparison Worksheet

24 Since the Qualifying Tax Rate fluctuates in response to changes in property value, a Primary Tax Rate increase does NOT necessarily mean a Primary Tax Amount increase to support basic M&O K-12 funding. Key Points

25 The governing board may adopt the formula based budget limit or a lesser amount to reduce the primary taxes and per pupil funding. Bond and Override election results determine the amount of additional funding beyond the formula that may be levied to increase per pupil funding for the district. Chandler Gilbert Key Points

26 The expiration of a capital override and the phasing out of the M&O override will result in an annual property tax bill reduction of $72 for a median home in Gilbert for the 2013 tax year. Key Points

27 Adopting a budget below the formula limit for the sake of maintaining the current primary tax rate will further reduce the property bill by an additional $36 for the year or an additional $3 per month and will reduce the district revenue by $5.5M Gilbert Key Points

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