What's This About a Supplemental Levy?
A supplemental tax levy is a type of local property tax imposed by a school district to generate additional revenue beyond what is provided by state funds and existing local property taxes. The calculation of a supplemental tax levy can vary depending on the specific needs of the school district and the laws governing property taxation in the jurisdiction. However, here is a general overview of how a supplemental tax levy might be calculated:
Assessment of Needs:
The school district assesses its financial needs and determines the amount of additional revenue required to fund specific programs, services, or capital projects. This assessment takes into account factors such as enrollment growth, inflation, salary increases, facility maintenance, and other operating expenses.
Determining the Levy Amount:
Once the financial needs of the school district are determined, the district calculates the amount of money it needs to raise through the supplemental tax levy. This amount is typically based on the projected shortfall between available funds (e.g., state funding, local property taxes) and the district's budgetary requirements.
Setting the Levy Rate:
The school district then calculates the levy rate, which is the amount of tax imposed on each dollar of assessed property value within the district. The levy rate is determined by dividing the total levy amount by the total assessed value of all taxable property within the district.
Public Approval:
Before implementing a supplemental tax levy, the school district must seek approval from voters within the district through a ballot measure. This typically involves holding a referendum or special election in which residents can vote on whether to approve the levy. The levy must receive a certain threshold of "yes" votes to pass, as specified by state or local laws.
Implementation and Collection:
If the supplemental tax levy is approved by voters, the school district implements the levy and begins collecting the additional property taxes from property owners within the district. The collected funds are then used to support the specified programs, services, or projects outlined in the levy proposal.
It's important to note that the specific procedures and requirements for calculating and implementing a supplemental tax levy can vary depending on the laws and regulations of the state or local jurisdiction. Additionally, the amount of revenue raised through the levy and its impact on individual property owners' tax bills will depend on factors such as property values, exemptions, and assessment practices within the district.