Understanding the Tax Calculation Teddy Dumlao

Key Questions What is the relationship between tax rates and tax amounts? What governing board decisions and bond/override election results affect taxes and per pupil funding? If the board adopted a budget lower than the budget limit to maintain the current primary tax rate, how would that impact my property tax bill and the school district?

Education Income & Sales Tax Sales Tax Initiative Property Tax - Primary Property Tax - Secondary

Property Taxes $ per Student Gilbert Roosevelt Scottsdale Problems with Old Model Disparity of tax rates to support education Heavily reliant on property taxes Disparity of Funding

1980 Tax Reforms Equalize Tax Rates Decrease reliance on property taxes Equalize per-pupil spending ◦“… a general and uniform public school system…”

Property Values and the Levy

Qualifying Tax Rate

Full Cash Value Full Cash Value (FCV) is a reflection of the market value of your property and consists of land and improvements. Tax year reflects the year the tax bill is calculated and mailed but is based on market conditions of January the previous year Gilbert Median Value increased to $159,000 (That is good news!)

Total Cash Requirements CashPrimarySecondary

Gilbert Unified Property Taxes Primary Tax (-Homeowner Rebate) Secondary Tax Total Tax

Gilbert Unified Property Taxes Primary Tax (-Homeowner Rebate) Secondary Tax Total Tax

Primary Tax Rate and Amount YearMedian ValueRateAmount 2012$143, $ $136, $ $159, $360.75

Equalization Base Number of Students (Average Daily Membership) ◦Weighted to address higher needs like disabilities Teacher Experience Index Transportation Miles

Equalization Assistance Equalization Base ◦Equitable funding Qualifying Levy ◦Portion of the equalization that comes from Local Property taxes as opposed to state funds. ◦The local effort expected to provide equitable student funding for your district Equalization Assistance ◦The state revenue calculation to provide equitable student funding for your district Equalization Base Equalization AssistanceQualifying Levy

$ per Student Qualifying Levy Equalization Assistance Property Taxes Min QTR Roosevelt Gilbert Scottsdale Qualifying Levy Cave Creek Equalization Base

Budget Limit vs. Adopted Limit $ per Student Gilbert Qualifying Levy Equalization Assistance Property Taxes Budget Limit

Budget Limit vs. Adopted Limit $ per Student Gilbert Qualifying Levy Equalization Assistance Property Taxes Adopted LimitAdditional Cuts $5.5M

Per Pupil Funding $ per Student Chandler Gilbert Mesa Higley

Equalization Assistance Property Taxes Gilbert M&O Override Capital Overrides Bonds SecondaryPrimary $ per Student M&O Override Capital Overrides Secondary Taxes

Equalization Assistance Property Taxes Gilbert M&O Override Capital Overrides Bonds SecondaryPrimary $ per Student M&O Override Capital Overrides $5.5M Primary Tax Amount vs Tax Rate

Per Pupil Funding $ per Student Gilbert Chandler Mesa Higley

Primary Cash Requirements Primary RCL, CORL, SCA, Adjacent Ways Equalization Assistance State Equalization Assistance Net State Equalization Assistance State Adjustments County Equalization Assistance Qualifying Levy Additional State Aid Property Tax Levy Adjacent Ways Levy Cash Balance SRP Contrib Equalization Base Your Primary Taxes – QTR x PAV/100 Prop 301 Sales Tax Teacher Salary Teacher Performance Pay

Secondary Cash Requirements Secondary Override M&O Override Capital Overrides.5982 Bonds Class A.5143 Class B.9250 CashSRP Contrib Your Secondary Taxes –

County Portion of Equalization Assistance Homeowner’s Rebate Primary and Secondary Taxes Your Tax Bill

Tax Comparison Worksheet

Key Points Since the Qualifying Tax Rate fluctuates in response to changes in property value, a Primary Tax Rate increase does NOT necessarily mean a Primary Tax Amount increase to support basic M&O K-12 funding.

Key Points The governing board may adopt the formula based budget limit or a lesser amount to reduce the primary taxes and per pupil funding. Bond and Override election results determine the amount of additional funding beyond the formula that may be levied to increase per pupil funding for the district. Gilbert $ per Student Chandler $ per Student

Key Points The expiration of a capital override and the phasing out of the M&O override will result in an annual property tax bill reduction of $72 for a median home in Gilbert for the 2013 tax year.

Key Points Adopting a budget below the formula limit for the sake of maintaining the current primary tax rate will further reduce the property bill by… ◦an additional $36 for the year or ◦an additional $3 per month ◦and will reduce the district revenue by $5.5M Gilbert $ per Student