Todd County Schools Setting the Tax Rates For School Year 2012

Taxation The local board of education is described as the “tax-levying authority” in KRS KRS requires that all school taxes be levied by the board of education of each school district. The local board of education is described as the “tax-levying authority” in KRS KRS requires that all school taxes be levied by the board of education of each school district.

Property Taxes The local board of education is authorized by KRS to levy an ad valorem tax (imposed as a percent of value). The following property is subject to an ad valorem tax: The local board of education is authorized by KRS to levy an ad valorem tax (imposed as a percent of value). The following property is subject to an ad valorem tax: Real Property – all lands within the school district and improvements thereon, including real property of public service corporations Real Property – all lands within the school district and improvements thereon, including real property of public service corporations Personal property Personal property Distilled spirits Distilled spirits Motor Vehicles Motor Vehicles

Certified Tax Rate Limits The Commissioner of Education certifies the tax rate limits to the board of education each year after receiving certified property assessment data from the Revenue Cabinet. (This information is the four pages you received with the slides from the power point) The Commissioner of Education certifies the tax rate limits to the board of education each year after receiving certified property assessment data from the Revenue Cabinet. (This information is the four pages you received with the slides from the power point) The next four slides tell us what the tax rate limits are: The next four slides tell us what the tax rate limits are:

Compensating Tax Rate Rate applied to the current year’s assessment that produces revenue equal to the previous year Rate applied to the current year’s assessment that produces revenue equal to the previous year 35.7 cents 35.7 cents

4% Increase The rate to produce 4% more revenue than the compensating The rate to produce 4% more revenue than the compensatingrate 37.4 cents

Subsection (1) Rate needed to produce the same revenue as the maximum rate which could have been levied in the previous year, excluding increase in value of old and new property Rate needed to produce the same revenue as the maximum rate which could have been levied in the previous year, excluding increase in value of old and new property 43.0 cents

House Bill 940 Rate The second tax law is House Bill 940 under KRS This tax rate that is computed by the State to be 31.2 cents. It is the Maximum Tier I Rate.

Tier 1 Tier 1 income is the state’s attempt to equalize all the counties in Kentucky so that the poor counties are in line with the rich counties per pupil assessment. The State Equalization amount for this year is $736,000. It is 150% of the projected average statewide assessment per pupil. Our Forecast SEEK calculation is already based upon the Maximum Tier 1 rate. The state is assuming we will set the rate that is most beneficial to our school district.

2011 Assessment from Dept of Property Valuation Property $465,082,523 Property $465,082,523 Motor Vehicles$ 64,268,085 Motor Vehicles$ 64,268,085 Total Total Assessment $529,350,608 Assessment $529,350,608

Tax Collections Assessment Value Estimated Revenue Actual Revenue % Collected Property Tax $453,330,474$1,636,523$1,548,554 95% Motor Vehicle $ 60,572,219$ 317,398$326, %

Projected Collections AssessmentCompensat ing Rate 35.7 cents Same Rate As Last Year 34.6 cents 4% Increase 37.4 cents Max Tier I Rate 31.2cents Subsection cents Property Tax Motor Vehicle Tax $465,082,523 $ 64,268,085 $1,660,344$1,533,669$1,737,689$1,999,855$1,906,005 At a collection rate of 95%, the estimated property tax revenue for 2012 is $1,650,805 an increase of $102,251 over what was actually collected in The estimated motor vehicle tax revenue for 2012 is projected at $336,765, a increase of $10,108.

History of Property Tax Rates August August August August August August August August

History of Motor Vehicle Rates in Todd County Motor Vehicle Rates have remained the same since August The rate is 52.4 cents. Changes are not being proposed for this rate.

Utility Taxes The Utility Tax rate is currently at 3%. No proposed changes are being proposed for this tax. The Department of Revenue is now collecting this tax on behalf of the district. We receive one ACH deposit per month. We also receive a telecommunication tax on cable companies, which amounts to approximately $1,100 a month.

Proposed Tax Rate for School year We are proposing we set the property tax rate at 37.4 cents, a 4% increase. We are proposing we set the property tax rate at 37.4 cents, a 4% increase. The same Motor Vehicle rate – 52.4 cents The same Motor Vehicle rate – 52.4 cents The same Utility Tax Rate – 3% The same Utility Tax Rate – 3% Our Property tax revenue will increase approximately $77,345. Our Property tax revenue will increase approximately $77,345.