1 / 32

2011 Tax Levy Hearing

2011 Tax Levy Hearing. Board of Education Meeting December 19, 2011. Truth-In-Taxation Act. Requires Districts to ESTIMATE the dollar amount to be collected from property taxes Disclose proposed increase if aggregate dollar amount (levy) is more than 105% of prior year’s extension

inez-harmon
Download Presentation

2011 Tax Levy Hearing

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. 2011 Tax Levy Hearing Board of Education Meeting December 19, 2011

  2. Truth-In-Taxation Act • Requires Districts to ESTIMATE the dollar amount to be collected from property taxes • Disclose proposed increase if aggregate dollar amount (levy) is more than 105% of prior year’s extension • Publish Notice in Newspaper • Hold a Public Hearing

  3. PTELL – “Tax Cap” LawProperty Tax Extension Limitation Law Limits the increase in property tax extensions to 5% or the CPI whichever is less.

  4. Five Year Levy Comparison(what we ask for vs. actual dollars received)

  5. FAQ: Why is the amount extended less than what is requested? • In order to maximize revenues, we prepare our levy by estimating the amounts at a higher level than anticipated. • Our reason for doing this is because property growth in the district is an unknown. • Equalized Assessed Valuation • New Construction • Expired TIFs, Annexation, Disconnection

  6. Historical Tax Rates for SPS 186 Actual 2010 Tax Rate $4.6422

  7. FAQ: If my tax rate for the school district has basically remained steady and we are under tax caps, then why am I paying more and more taxes? Two reasons could account for this: The assessed valuation on your property has increased and you are therefore paying the tax rate per $100 on a greater value. Other municipalities also levy taxes and are included on your tax bill. Those municipalities may have increased their rate.

  8. Average HomeownerProperty Tax Increase Impact Assumes $6000 homestead exemption

  9. Property Taxes Represent 42% of Budget

  10. 2011 Levy Request by Fund • Education Fund $ 59,646,721 • Operations & Maintenance $ 11,582,776 • Transportation $ 4,725,025 • Special Ed $ 1,281,228 • Tort $ 3,183,174 • Leasing $ 890,343 • Municipal Retirement $ 2,655,631 • Social Security $ 2,098,576 Total Levy $ 86,063,474

  11. Levy Process Timeline November 7 BOE Adopts Tax Rates December 6 Tax Hearing Notice Published in The State Journal Register December 19 Public Hearing Adoption of Tax Levy Resolutions December 21-28 File Certificate of Levy with County Clerk

  12. Springfield Public School District 186 Sangamon County Questionsand Answers

  13. What is the Tax Levy? • Tax Levy is a request for property tax dollars based on the estimated needs of the District • It’s generally estimated to insure generating maximum revenue under the tax cap. • You cannot receive more taxes than you are entitled to under the tax cap. • The Bond Levy (automatically extended), equals the principal and interest due in the following year on the District’s outstanding debt.

  14. Tax Levy • Tax Levy requests will be reduced under these conditions: • If a fund’s tax rate is restricted (Education, Building, Transportation, Working Cash, Life Safety, Leasing), the tax levy in that fund can be reduced. • If the aggregate levy request generates a levy in excess of the amount allowed under “tax caps” the levy and subsequent overall tax rate will be reduced.

  15. How Is Estimated Tax Levy Determined? • Equalized Assessed Valuation (EAV) • New Property Growth • Consumer Price Index (CPI)

  16. Equalized Assessed Valuation (EAV) FY LevyEAV Diff ($M)Change (%) 01-02 2000 1,469,931,480 $11.4 0.78 02-03 2001 1,527,272,163 $57.3 3.90 03-04 2002T 1,566,700,503 $39.4 2.58 04-05 2003 1,617,725,772 $51.0 3.26 05-06 2004 1,629,936,528 $12.2 0.75 06-07 2005T 1,695,261,560 $65.3 4.01 07-08 2006 1,773,977,471 $78.7 4.64 08-09 2007 1,833,250,647 $59.3 3.34 09-10 2008T 1,862,188,492 $28.9 1.58 10-11 2009 1,895,446,220 $33.3 1.79 11-12 2010 1,919,953,759 $24.5 1.29

  17. Historical Consumer Price Index

  18. How is the Final Extension Determined? • The Sangamon County Assessor’s office establishes property valuations. • Taxing districts file their levy request with the County Clerk’s Office. • To produce the revenue requested, the County Clerk uses the levy to determine the tax amount to be “extended” against all properties located within the boundaries of the taxing district.

  19. How is the Final Extension Determined? • The County Clerk’s Office determines the rate needed per $100 of taxable value to generate the requested revenue, based on the value of all taxable property within the district boundaries.

  20. Basic Tax Formula Per $100 of Equalized Assessed Valuation (EAV) X ____________ (Tax Rate) = TAX EXTENSION

  21. Limiting Rates • Limits under Illinois law can restrict the revenue, either through statutory maximum rates for certain purposes and/or through “tax caps,” which limit the total amount extended. • Extension limits are not applied to funds needed to pay bonds

  22. Tax Extension Limiting Rate • Basic Algebraic Formula: (Prior Year Extension x (1+Lesser of 5% or CPI) (Total EAV – New Construction – Expired TIFs) 2009 Extension = $79,210,698 CPI = 2.7% EAV= $1,933,355,144$1,919,953,759 New Construction = $21,136,709 $17,294,964 Limiting Rate: 4.208% 4.276 Max $ from capped funds = $82,238,751 $82,089,543

  23. Springfield Public School District 186 Sangamon County Glossary of Terms

  24. Glossary of Terms Assessment – the process of valuing real property for tax purposes. Assessed Valuation – the taxable value placed on the property by the local assessor.

  25. Glossary of Terms Collection - receipt of property owners’ payments by the county treasurer. Distribution - payment of tax receipts by the county treasurer to schools

  26. Glossary of Terms Equalization – adjustments to local assessed valuations to bring about a median level of one-third of fair market value. Equalized Assessed Valuation (EAV) – a property’s valuation after county and state equalization are performed.

  27. Glossary of Terms Extension - the process by which the county clerk calculates an agency’s tax rate. The total extension is the product of the agency’s EAV multiplied by its calculated tax rate, and is equal to the total property tax billings on the agency’s behalf.

  28. Glossary of Terms Levy - the amount of the school district’s need for property taxes for each fund as certified in the board of educations annual levy resolution in December. Multiplier - the factor applied to a township or county’s total assessed valuation to equalize it to one-third of fair market value, the rate specified in the law.

  29. Glossary of Terms Tax Base - the total equalized assessed valuation (EAV) of a school district. Tax Cap - shorthand for the Property Tax Extension Limitation Act, which was enacted to control the growth of property taxes of schools and some other units of governments.

  30. Glossary of Terms Tax Rate - the amount of property taxes extended, expressed as a percentage of EAV (e.g. a rate of 2.50 percent or 2.50 computes to a tax bill of $2.50 per $100 EAV.) Tax Year - the calendar year in which property is assessed and the levy is made. Taxes are billed, collected and distributed in the following calendar year.

More Related