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School Tax Presentation

School Tax Presentation. Definitions Facts Figures Questions Assumptions. What you need to know. What is home assessment ? What is assessed valuation ? What is required tax levy ? What drives my school taxes ? School Tax versus Municipal Taxes. Average Home Assessment :

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School Tax Presentation

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  1. School Tax Presentation Definitions Facts Figures Questions Assumptions

  2. What you need to know • What is home assessment ? • What is assessed valuation ? • What is required tax levy ? • What drives my school taxes ? • School Tax versus Municipal Taxes

  3. Average Home Assessment: The average home assessment is set by the Rockaway Township Tax Assessor each year. The Assessor compiles total valuation of real property and performs a formal calculation to develop the total “assessed valuation” from which he can calculate the “average assessed home”. Definitions:

  4. Assessed Valuation: “Assessed valuation” is the calculation of the “real property” value of the seven (7) different property classifications. This total is used in determining the “average home assessment”. Definitions:

  5. Required tax levy: “Required tax levy” is the amount of money the Rockaway Township Board of Education needs to raise to effectively, efficiently and responsibly deliver educational services to the 2500+ students that attend our schools. Definitions:

  6. Tax Rate: The product of a formal calculation the Rockaway Township Tax Assessor undertakes to establish the tax rate for the fiscal year he is reporting on. The “tax rate” is calculated by dividing the “required tax levy” by the “assessed value”. Definitions:

  7. School tax: “School tax” is a formal calculation the Rockaway Township Tax Assessor undertakes to establish the “school” tax levy for the fiscal year based on the “tax rate” multiplied by the “average assessed home value divided by 100. Definitions:

  8. School tax increase: The “school tax increase” is a formal calculation the Rockaway Township Tax Assessor undertakes to establish the “school tax increase”. It is simply the amount of “school tax” in the present year compared to the “school tax” in the future year. Definitions:

  9. The “average assessed home” for the 2012 fiscal year has been established by the Rockaway Township Tax Assessor at $313,538. Facts:

  10. The “required tax levy” established by the Rockaway Township Board of Education for the 2012-13 school year is $ $41,055,984.50 Facts:

  11. The “school tax rate” as established by the Rockaway Township Tax Assessor for the 2012 fiscal year is $1.139894 per $100 of valuation. Facts:

  12. The “school tax increase” as established by the Rockaway Township Tax Assessor for the 2012 fiscal year is -$42.27 for the home assessed at the Township average assessment of $313,538. Facts:

  13. The Assessor compiles total valuation of real property and performs a formal calculation to “certify” the “average assessed home”. The “total ratable” for Class II ( Homes) for the 2012 fiscal year is $2,675,416,500. The“total number of housing units” in Class II is 8,533. The Assessor divides “total ratable” by “total number of housing units” – ($2,675,416,500 divided by 8,533). That formal calculation gives you the “average home assessment” of $313,538. Figures:

  14. The Rockaway Township Board of Education has certified to the Rockaway Township Clerk that for the 2012-13 school year the Rockaway Township Board of Education needs to raise in taxation $41,055,984.50. Figures:

  15. The “school tax rate” for the 2012-13 school year is $1.139894. The Rockaway Township Tax Assessor performs a formal calculation where he takes the amount to be raised for taxation - $41,055,984.50 divides it by the “assessed valuation” - $3,601,736,700 multiplied by 100. ($41,055,984.50 divided by $3,601,736,700) times 100. Rates are always displayed as per $100. Figures:

  16. The “school tax increase” for the 2012-13 school year is -$42.27 for a home assessed at the Township average of $313,538. The amount of taxes to be raised for the 2011-12 school year was $40,816,174.00.The amount of taxes to be raised for the 2012-13 school year is $41,055,984.50. Whichis an increase of $239,811. As we know the 2012-13 school year school tax rate is $1.139894. Multiply $1.139894 by the average assessed home value of $313,538 and you get a school tax of $3,573.57. Compare 2011-12 of $3,615.84 versus $3,573.57 for 2012-13 you see taxes are going down by $42.27 . Figures:

  17. The Rockaway Township Chief Financial Officer has reported that the Rockaway Township Mayor and Council have proposed a operating budget for fiscal year 2012 which requires taxes to be raised in the amount of $25,988,632. An increase of $1,758,738 over the fiscal year 2011 tax levy of $24,229,894. This equates to a Municipal operating budget tax increase of $116.44. Facts:

  18. The Rockaway Township Board of Education mailed home a newsletter in early March 2012 which reflected a proposed school budget below the state imposed 2% cap on taxes. A budget at the time of mailing that reflected a school tax decrease of $ $437.35 on a home assessed at $279,600. The budget was amended at the March 28, 2012 Special Meeting by adding 2.5 teachers and an additional guidance counselor and now reflects the “certified” “average assessed home” figure of $313,538 as certified by the Rockaway Township Tax Assessor. The revised 2012-13 school year budget will reflect a school tax decrease of $42.27 based on the “certified” average home assessment and the budget increase. Facts:

  19. What was incorrect was that the average home assessment was $279,600. Actual average home assessment is $313,538 Affect of budget change made on March 21 was to increase tax less than $10 for average home Actual tax on a home is calculated by multiplying actual assessment by tax rate above Result of reappraisals increased ratables from $2,829,943,469 to $3,601,736,700 and reduced local school tax rate from $1.4423 per $100 to $1.1399 per $100 All reported tax figures were correct for a home previously assessed at $250,789 and now assessed at $279,600. Facts:

  20. There is no validityto the comment being circulated in the community that the Municipality is subsidizing the Board of Education’s share of the successful Tax Appeal liability. The Rockaway Township Board of Education has no tax liability for the successful Tax Appeals. The Municipality is solely responsible for raising taxes to offset the successful Tax Appeals. Facts:

  21. Why the change in the average assessed home? The school district and the assessor from October 2011 to early January 2012 were in contact exchanging information to be used for the 2012-13 school year. The district used the most recent information at hand to project the impact of the 2012-13 school year budget. Due to the complexity of the town wide re-evaluation the final numbers remained fluid as the tax appeal process took its natural course. After all tax appeals and issues were adjudicated the Tax Assessor “certified’ his final number. Unfortunately, the newsletter was already to the printer before the District had access to the “certified” figures. Questions:

  22. Just as a reminder at every presentation of budget information the Rockaway Township Board of Education alerts the public to the fact that any numbers the Board uses are “projections” and that the final tax impact will be reflected in your August 2012 tax bill. The Township of Rockaway sets the tax rate not the Board of Education. As much as both municipal subdivisions try to work collaboratively sometimes information is misinterpreted or out dated. The Board is preparing to send out a “revised” newsletter to reflect the budgetary increases and the updated information on the value of the average assessed home.. Questions:

  23. What drives your school tax? Several things drive your school tax. The amount of money to be raised by taxation in any given year by the Rockaway Township Board of Education to effectively, efficiently and responsibly deliver educational services to the 2500+ students that attend our schools. The net assessed valuation of “real property” calculated by the Rockaway Township Tax Assessor. Questions:

  24. What did the school tax increase when the assessed value increased? When the assessed value increased so did the number you multiply the tax rate by. For example: If your tax rate was 1.00 per $100. If your home was assessed at $200,000 initially your tax on that home would be $1.00 times 2000 or $2,000. If your assessment went up to $250,000 your tax would be $1.00 times 2500 or $2,500. It may seem counter intuitive that if the base assessment increased that the taxes also increase but that is how it works. Questions:

  25. What assumptions can you make? You can assume based on the past four (4) school budget average increases in school taxes of 2.74% that the Rockaway Township Board of Education is continuing to provide effectively, efficiently and responsibly delivered educational services to the 2500+ students that attend our schools with the least possible financial impact on the community they serve. Assumptions:

  26. School taxes for the average home will “decrease”. The preliminary information in the newsletter has been modified and a “revised” newsletter has been drafted. Summation:

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