(1/3/2009)
Message to Community
Answers to Questions about the Tax Levy
This is the time of year when public taxing institutions have to set the tax levy extension request for next year. Here are some answers to questions about the school property tax levy.
What is the School Property Tax levy anticipated to be for next year?
There is good news from the ______School District. It is anticipated that the tax levy will decline for next year from 5.2825to around 5.1010. This is a decrease of about 0.1253.
How is the levy set?
There are ten (10) different property tax levies for public school districts. The ten levies represent different financial purposes. Within the ten levies, there are two types of levies. Levies that are based on tax rate limits and levies based on need.
The seven levies that are set by tax rate maximums may not be increased above the rate maximum without voter approval. These funds include:
Education2.64 (Used for salaries, textbooks, and all expenses related to the education of students)
Operations and Maint.0.50 (Used for facility expenses, utilities, maintenance, and other expenses for facilities)
Transportation0.20 (Used to support bus and van transportation)
Fire Prev. and Safety0.05 (Used to address facility and equipment maintenance and safety)
Special Education0.04 (Used to help pay for the extra expenses incurred through the instruction of students with special needs.)
Leasing Levy0.05 (Used for leasing technology and other equipment or buildings)
Working Cash0.05 (Used as emergency funds for the school district to assist in cash flow)
Three levies are set by need. This means that the District calculates expenses for the coming year, subtracts funds that are in reserve and sets the levy so that the District receives the amount of revenue it has calculated that it will need for these purposes. These funds and reserves may not be transferred to other funds. The three funds are:
Social SecurityWe will need to levy $120,000 this year to meet our obligations. This is the same amount that was levied last year.
IMRFWe will eliminate this levy this year. (Illinois Municipal Retirement Fund) That is a decrease of $30,015. The current reserves will pay for our needs in this fund.
TortWe will need to levy $160,000 this year. This is a decrease of $130,003. This fund is used to pay legal expenses and court obligations.
Overall, in the funds levied to need, there is a decrease of $160,003 this year when compared to last year.
With the decrease in the levy, will my property taxes go down?
Property taxes are calculated using two figures. The tax rate is multiplied by the taxable value of the property. The taxable value of the property is determined by the county, not the school district. If the taxable value of the property is assessed to be higher than the previous year, this may cause the property taxes to increase even if the tax rate has declined. For this reason, based on the assessed value of the property, some tax payers will see a decrease but others may see an increase.
Why will the Truth in Taxation notice show request for an increase in taxes over last year?
The truth in taxation notice this year will indicate that the District is asking to be allowed to receive up to $70,057 more in local tax dollars than last year. This will happen only if the assessed value of the property within the ______School District actually increases in value by $5,491,575 or more. The increase in value is created by either new construction or by increasing values on existing properties. If the (EAV) Equalized Assessed Value of property within the school district does not increase by that amount, district will only receive the taxes on the value of the property that has been assessed using the above formula and we will not receive the additional tax dollars.
Never hesitate to come in, call, or e-mail if you have any questions. My door is always open.
Sincerely
Superintendent Name
Superintendent Email