Property tax assessment rate.

03LSO-0301.L1

                                                         

FISCAL NOTE (HB0138)

 

 

	FY 2004	FY 2005	FY 2006
NON-ADMINISTRATIVE IMPACT
Anticipated Revenue Decrease:
SCHOOL FOUNDATION FUND	0	2,900,000	2,900,000
Anticipated Expenditure Increase:
SCHOOL FOUNDATION FUND	0	7,600,000	7,600,000

 

Source of revenue decrease and expenditure increase:

 

Decrease in the ad valorem property tax assessment rate for “all other property” from 9.5 percent to 8.7 percent. Reduction in assessment rate would decrease property tax revenues collected by the counties, including local resources for school funding, and the 12 mill state share that goes to the School Foundation Program.

 

Assumptions:

 

1. The above estimates are based on the 2002 assessment year. Projected property tax revenue decreases for affected class of property held constant.

 

2. Revenue decrease to School Foundation program based on mill levy of 12 mills.

 

3. County revenue decrease for school funding based on local share school mill levy of 31 mills. This decrease in revenues to counties would be backfilled by increased School Foundation Program expenditures.

 

4. Counties would also experience property tax revenue reductions in other funding areas such as municipalities, community college districts, and special districts.

 

 

 

 

 

Prepared by:   Dean Temte, LSO    Phone:   777-7881

(information provided by Allen Black, Dept. of Rev.; phone 777-5235)