1. Impact of Property Tax Reform On Counties FY15 – FY 17 Budgets ISAC Board of Supervisors November 14, 2014

2. Overview FY 15 Budget Impact Utilities: Telecommunications Railroads Credit for Commercial / Industrial Residential Rollback Agricultural Rollback

3. Overview FY 16 Budget Impact Utilities: Telecommunications Railroads Credit for Commercial / Industrial Residential Rollback Agricultural Rollback

4. Overview FY 17 Budget Impact Credit for Commercial / Industrial Multifamily Residential Rollback Residential Rollback Agricultural Rollback

5. FY 15 Impact Railroads By statute, % for railroads must equal the lowest of the %s for commercial, industrial and utility properties. Example: Scott County Taxable Value Tax Revenue Revenue Loss FY 14 $ 9,285,627 $ 57,849 FY 15 $ 8,532,360 $ 50,499 $ 7,350

6. FY 15 Impact Telecommunications Exemptions Generally the exemptions average is 15% Auditors have FY 15 actual numbers Example: Scott County Assessed Value Exempted Value Revenue Loss 43,580,362 6,124,702 $38,188

7. FY 15 Impact Commercial and Industrial Rollback 95% Credit will offset levy rate one for one – Scott County Estimated Claim: $755,000 Multi- family residential still considered commercial

8. FY 15 Impact Allowable Growth 4% to 3% FY 15 Residential Rollback 54.4002% Lower Growth 0.5% Example: Scott County FY15 Growth 0.5% = $275,979

9. FY 15 Impact Agricultural Rollback 43.3997% Very hard to quantify because of varied assessed values in the State for Jan. 1, 2013 Example: Scott County Taxable ValueRollbackTaxes FY 14$212,113,04359.9334%$1,321,464 FY 15$215,138,55843.3997%$1,340,319

10. FY 15 Impact Total Revenue Loss for Scott County at current urban levy rate Railroads$ 7,350 Telecommunications 38,188 Rollbacks 275,979 Total$ 321,517

11. FY 15 Impact Example: Scott County Overall taxable value increase 3.88% New construction, revaluation and rollbacks $1,618,000 3.4% new revenue for budget

12. FY 16 Impact Railroads By statute, % for railroads must equal the lowest of the %s for commercial, industrial and utility properties. Example: Scott County Taxable Value Tax Revenue Revenue Loss FY 15 $ 8,532,360 $ 50,499 FY 16 $ 8,105,742 $ 47,841 $2,658

13. FY 16 Impact Telecommunications Exemptions Generally the exemptions average is 30% Auditors will have FY 16 actual numbers Example: Scott County Assessed Value Exempted Value Loss Revenue 43,580,362 12,249,403 $76,375

14. FY 16 Impact Commercial and Industrial Rollback 90% Credit will offset levy rate one for one – Scott County Estimated Claim: $1,600,000 Multi- family residential still considered commercial

15. FY 16 Impact Allowable Growth 3% Estimated FY 16 rollback at 0.5% lower growth Example: Scott County Estimated Rollback FY 1655.9838% FY16 Revenue Loss$551,958

16. FY 17 Impact New Multi Family Residential Rollback 86.25% Value is removed from FY 16 Commercial and Industrial Property Tax Replacement Claim *Thereafter 3.75% increase in Rollback Until Rollback Meets Residential Percent Estimated: Scott County Revenue Loss$294,815

17. Summary of Loss Revenue FY15 - FY17 Example: Scott County Incremental Loss Cumulative Loss FY 15$321,517$ - FY 16$638,341$ 959,858 FY 17$946,320$1,906,178

18. Thank You. Questions?