Mill Levies Property Taxes Mary Lynn Christel Public

Mill Levies & Property Taxes Mary Lynn Christel Public School Finance and Operations Division Christel_m@cde. state. co. us – 303 -866 -6818 October 2015

Agenda § Definitions § Timeline § Assessed Valuations § Mill Levies § Questions

Definitions § Mill § a mill equals one-tenth of one percent (. 001) § AV – § Assessed value is a percentage of the actual value of a property. § Residential property is assessed at 7. 95% § Commercial and most other property is assessed at 29% § Local Share § Local share is comprised of property taxes collected through the levying of the total program mill and specific ownership taxes

Timeline § August 25 - assessors send preliminary AVs to districts and CDE § 2015 is reassessment year (odd years) § November 23 – CDE sends preliminary certification worksheets to districts § No later than December 10 - assessors send final AVs to districts and CDE § No later than December 15 – district Board of Education certifies mill levies by Board resolution and submits to county commissioners § Mills levied will generate property tax revenues for current fiscal year.

Timeline (continued) § December - AVs are plugged into the school finance formula and the local share is determined based upon mill levies § Legislative Council bases estimates for the following year on the December actuals – built into School Finance Act § Spring 2016 – property taxes collected

Property Tax & Assessed Values § Mill levies § Equals one-tenth of one percent (. 001) § Assessed values based on percentage of actual value § Residential – 7. 96% of actual § Most other (commercial) – 29% § In 2007 -08, total program mill levies were frozen at 27 mills or less § Four districts that have not passed TABOR elections are a bit different § AV X mill levy = property taxes § $10, 000 AV X. 027 mills = $270, 000 property tax

Mill Levies § Mill Levy Certification Worksheet § Total Program - mill levy set to generate local share of total program funding § Capped at 27 mills. Cannot go up from prior year. § Categorical Buyout § Used by district which are able to fully fund total program § Voter approved overrides – mill levy approved by voters to provide funding for district § Might be a certain dollar amount or a fixed mill § Hold harmless and excess hold harmless – result of 1994 Act

Mill Levies (continued) § Abatements – mill levy to recapture property tax refunds or cancellations based on revaluations § Will change from year to year § Bond Redemption – mill levy set to generate funds to pay off debt principal and interest (voter approved) § This levy can potentially float up and down depending on the AVs § Transportation Fund – funds excess transportation costs (voter approved)

Mill Levies (continued) § Special Building & Technology Fund – funds technology no more than 10 mills, no longer than 3 years (voter approved) § Full Day Kindergarten Fund – funds implementation of full day kindergarten excess costs (voter approved) § Other – Charter Schools (voter approved)

Assessed Valuation § Gross Assessed Valuation § (less) Tax Increment Financing (TIF) § Net Assessed Valuation § Abatements/Refunds (total across all counties) § Full Funding Mill Levy – mill levy district would have to certify if no state aid § Funding received from state = state share § District must certify exact same mill levy across all counties.

Mill Levy Limits § Voter Approved Override Limits Override calculation worksheet § 25 percent of total program funding (before negative factor) plus FY 2001 -02 Cost of Living Amount (fixed) § 30 percent of total program funding if identified as a small rural district (110 across state) § Includes voter approved override, hold harmless, excess hold harmless and cost of living mill (if any)

Calculate a Mill § Voter approved override $500, 000 § Current Assessed Valuation $265, 000 § How many mills for the taxpayer? § 500, 000/265, 000 *1000 = 1. 887 mills § Impact to homeowner with $300, 000 house § $300, 000 *. 0796 = 23, 880 assessed value § 23, 880 *. 001887 mills = $45. 00 per year