House Bill 920 protects taxpayers from unvoted increases in property tax, which effectively caps how much school districts can earn from any particular levy.
Example: A school district with a residential tax base
of $100 million passes a 2 mill levy. The levy raises $200,00 in
revenue for the school district the year it is enacted. A reappraisal
of residential property the following year raises the property
valuation to $115 million. Instead of the district receiving the
$230,000 a 2 mill levy would bring on that value, House Bill 920 lowers
the effective tax rate by 13% so that the revenue remains at $200,000.
Example of a House Bill 920
Tax Reduction Factor on a Two Mill Tax Levy
|
|
Assessed
Value
|
Tax Levy
|
Tax
Before
Reduction
|
Tax Reduction
Percentage
|
Taxes Charged & Payable
|
|
Base
Year
|
$100,000,000
|
2 mills
|
$200,000
|
0.0%
|
$200,000
|
|
Reappraisal
|
$115,000,000
|
2 mills
|
$230,000
|
13.0%
|
$200,000
|
Return to House Bill 920 page.