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Act 1 and Multi-County School District Issues Thursday, March 15, 2007 1:00- 2:00 PM

Pennsylvania Association of School Business Officials. Act 1 and Multi-County School District Issues Thursday, March 15, 2007 1:00- 2:00 PM. Presenters. Susan F. Elder Director of Research, PASBO William L. McGill, PRSBA Director of Technical Assistance, PASBO. So You Came Here for

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Act 1 and Multi-County School District Issues Thursday, March 15, 2007 1:00- 2:00 PM

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  1. Pennsylvania Association of School Business Officials Act 1 and Multi-County School District Issues Thursday, March 15, 2007 1:00- 2:00 PM

  2. Presenters • Susan F. Elder Director of Research, PASBO • William L. McGill, PRSBA Director of Technical Assistance, PASBO

  3. So You Came Here for ALL the Answers???

  4. The Bar is OPEN !!!!!!

  5. Rebalancing • § 672.1 of the School Code • Provides several options for adjusting millage rates currently levied in each county by the change in relationship of market values in each county before adding new millage.

  6. Rebalancing • Method 1 • Based upon the percentage or ratio of STEB’s most recent property (market) values • Most Widely Used

  7. Rebalancing • Method 2 • Market value equals assessed value / ratio of assessed value to market value in the municipality as determined by STEB • Ratio varies by municipality • Ratio is aggregate of all municipalities • Selection the lower of the ratios • Condition: Home rule county, Ratio ≤ 75%

  8. Rebalancing • Method 3 • Condition: If counties are assessed at 100% of market value AND using the same base year • Uniform millage rate • Limited Usage

  9. Rebalancing • PDE-2028 • Hold harmless for base mills subject to Index

  10. Rebalancing • Sample PDE-2028 • East Stroudsburg Area School District • Method 1 § 672.1 (1)

  11. Rebalancing • Sample PDE-2028 • Warrior Run School District • Method 1 § 672.1 (1)

  12. Rebalancing • Sample PDE-2028 • Warrior Run School District • Method 1 § 672.1 (1) • REVISED Calculation to come within Index

  13. Rebalancing Original Tax Revenue = $4,796,178 Revised Tax Revenue = 4,787,613 Loss of Revenue = $ 8,565

  14. Rebalancing • Sample PDE-2028 • Norwin School District • Method 1 § 672.1 (1)

  15. Rebalancing • Sample PDE-2028 • Corry Area School District • Method 2 § 672.1 (2)

  16. Homestead/Farmstead Calculations • Act 50 of 1998 requires use of Common Level Ratio (CLR) • § 8583 (b) “the exclusion established … for each county portion of the political subdivision shall be uniform after adjustment for the common level ratios in the respective counties.”

  17. Homestead/Farmstead Calculations • § 8583 (a) requires a homestead exclusion to be a fixed dollar amount

  18. Homestead/Farmstead Definitions • Common Level Ratio – the ratio of assessed value to current market value used generally in the county as last determined by the State Tax Equalization Board (STEB)

  19. Homestead/Farmstead Definitions • Established Predetermined Ratio – the ratio of assessed value to market value established by the Board of County Commissioners and uniformly applied in determining assessed value in any year

  20. Homestead/Farmstead Definitions • Farmstead - All buildings and structures on a farm - Not less than 10 contiguous acres - Not exempt from real property taxation - Not qualified for other abatement - Produce/store farm product - House farm animals, equipment, or machinery

  21. Homestead/Farmstead Definitions • Farmstead Property – A farmstead for which an application has been submitted and approved

  22. Homestead/Farmstead Definitions • Median Assessed Value – the value which is the middle point in the sequential distribution of assessed values, above and below which exist an equal number of assessed values

  23. PASBO Act 1 Worksheet • w/an Earned Income Tax • Minimum and Maximum Exclusion • Variable EIT Rate Calculator • Multiple Counties – Using STEB Common Level Ratio

  24. PDE Ballot and Homestead Exclusion Calculators(Posted February 23, 2007) • EIT / PIT Calculator for May 2007 Ballot - uses median assessed value to determine the minimum and maximum homestead exclusions - to determine the corresponding EIT or PIT rates to fund the minimum or maximum

  25. PDE Ballot and Homestead Exclusion Calculators • “This data will be helpful in determining that the dollar value of the homestead exclusion on the proposed ballot question for the May 2007 primary is within the boundaries of the minimum and maximum.”

  26. PDE Ballot and Homestead Exclusion Calculators • Homestead Exclusion Calculator - determines “the dollar value of the homestead exclusion and the assessed value reduction for each county if the voters approve the May 2007 ballot question establishing a new or additional EIT or PIT to fund homestead exclusions.”

  27. Act 1 Multi-County School District Issues Questions and Answers (Well, maybe not ALL the answers!)

  28. Act 1 Multi-County School District Issues This Concludes Our Presentation! THANK YOU!

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