| implication is they are not raising your taxes. However, |
| Relationship of Tax Rate | this does raise your taxes. This can happen because new |
| Tax Levy, & Assessment | property is excluded from the Tax Cap Law. So instead of |
| page 2 of 2 | allowing their Tax Rate to drop and be offset by new |
| property assessed value the tendency is to Levy high |
| enough so the Tax Cap Law limiting factor determines |
| their rate and then they get all the new money from the |
| new property without it reducing their Tax Rate. If you |
| look at your tax bill and compare the individual tax rates |
| for each taxing body from the previous year to this year |
| you can see the ones not allowing their tax rate to drop. |
| Example: Using the numbers from above if next year the |
| Total Assessed Value goes from 90,000,000 to 98,000,000 |
| and the Tax Rate dropped 2 tenths to 6.8% the Levy per |
| the formula = 6,664,000 or 364,000 greater than the year |
| before. So the question is how much money do you really |
| need to operate? The two possible answers are a specific |
| amount or all we can get. |
| The following demonstrates the effect of a 2 tenths |
| reduction in the Overall Tax Rate. |
| 1. 65,000 assessed value tax rate 7% = $4550 tax bill. |
| 2. 65,000 assessed value unchanged tax rate 6.8% = $4420 |
| tax bill |
| 3. 65,950 assessed value due to a Market Value increase of |
| 3% with a 6.8% Tax Rate =$4553 tax bill. |
| The new growth should continue to drop the Overall Tax |
| Rate but only if the Taxing Body’s board members you |
| page 2 of 2 | elect understand the consequences of their actions. |