2. The School’s Role in Tax Rate Setting NHSAA Best Practices Conference Friday September 25, 2009 10:55 AM Salon C Barbara J. Robinson NH Department of Revenue Administration Municipal Services Division

3. School’s Role in an Early Tax Rate  Submit forms timely  Forms due 20 days after vote  MS-25 Fin. Report Sept. 1  MS-24 Due Sept. 1  Review Coop./Reg.Apportionment ASAP  Notify Town & DRA of special meetings; errors; changes, etc.  Attend Tax Rate Interview

4. Which Forms? Posted Budget (MS26 or 27 or 26c) Results of Vote MS22 Minutes & Warrant Ballot/vote (if SB2) Deliberative session minutes (if SB2) Estimated Revenues MS24 – Sept. 1 Financial Report MS25 – Sept. 1

5. Overview of the Tax Process  State Grants calculated by DOE  State Ed. Tax Calculated by DRA  Your Budget Preparation  Hold Hearing(s)  Post Warrant & Budget  Town/School/County/Vill. Dist. Meeting Votes on Budget  Minutes/Forms to DRA to Review (April)  DRA Review More Forms after Sept. 1 + Final Review  Coop/Regional Apportionment  Tax Rate = $

6. RSA 21-J:35 Setting of Tax Rates by Commissioner I. The commissioner of revenue administration shall compute and establish the tax rate of each town, city, or unincorporated place.

7. RSA 21-J:35 Setting of Tax Rates by Commissioner II. To compute and establish the tax rates of towns, cities and unincorporated places under paragraph I, the commissioner shall examine the reports required under RSA 21-J:34 to ensure that: (a) All appropriations have been made in a manner which is consistent with procedural requirements established by statute. (b) No appropriations have been made which are prohibited by statute. (c) All revenues have been estimated accurately and in a manner which is not prohibited by statute. (d) All calculations are correct.

8. RSA 21-J:35 Setting of Tax Rates by Commissioner III. If the commissioner finds that appropriations were made in a manner which is inconsistent with statute he shall delete the appropriation or that portion in question.

9. RSA 21-J:35 Setting of Tax Rates by Commissioner IV. If the commissioner finds that the estimated revenues included are inaccurate or inappropriate he shall adjust the estimates in question.

10. 1 st Review Process MS26/27 & MS22, Minutes & Warrant Review meeting documents Procedural requirements for appropriations [RSA 21-J:35,II (a)] Appropriations for legal purpose [RSA 21- J:35, II (b)] Disallow or technical assistance letters Early DRA Review = Early Fixes

11. 2 nd Review Process MS-1 Other Forms MS-1 Equalization Group reviews it MS-4 & MS-24 Revenue adjustments (RSA 21-J:35,IV) Appropriation adjustment when surplus for offsetting warrant article is insufficient. MS-25 School financial report due Sept 1 Coop Apportionment - DOE Review Immediately

12. Interview w/Town Review Needs for the Year Discuss Related Issues Make Additional Revenue Adjustments Town Fund Balance Amount to Use as Revenue -“Surplus” Establish Overlay (RSA 76:6) Calculate Tentative Rate Final Rate Process Back at DRA

13. Statewide Enhanced Education Tax Amount Calculated DOE – Calculates Grant Amounts DRA/DOE – Statewide Enhanced Education Tax (SWEET) Calculated For 2009 Calculation : 2007 Equalized valuation w/out utilities (2 yr. Back) * $2.135 (a rate to get $363 million) = state tax warrant

14. Calculating Municipal Rate per $1000/value Gross Appropriations less Revenues plus Overlay plus War Service Credits less Shared Revenue divided by 2009 Locally Assessed Property Valuation (per line 21 of 2009 MS-1) x 1,000 = Municipal Tax Rate per 1,000

15. Local Education Rate per $1000/value Net School Appropriation Less State Grants and State Tax divided by 2009 Locally Assessed Property Valuation (per line 21 of 2009 MS-1) x 1,000 = Local Education Tax Rate per 1,000

16. Statewide Enhanced Education Rate State Education Amount rate producing $363 million = $2.135 $2.135x 2007 Equalized Value w/out Utilities Divided by 2009 Locally Assessed Property Valuation Without utilities Per line 23 of 2009 MS-1 x 1000 = State Education Rate per 1,000

17. County Rate County Net Appropriation x town’s 2008 equalized value as % of total county = Town’s County Assessment divided by 2009 Locally Assessed Property Valuation Per line 21 of the 2009 MS-1 x 1000 = County Tax Rate per 1,000

18. Village District(s) Rate(s) Net Appropriation divided by 2009 Locally Assessed Village District Valuation X 1000 = Village District Tax Rate per 1,000

19. Tax Collector’s Warrant RSA 76:10, II Be Within ½% May Need New MS-1 & Tax Rate But Why is it Different? Tax collector data base different from assessor MS-1 doesn’t match data base Rounding Incorrectly billing the utilities Negative rate due to a credit Check exemptions/inventory penalties