Understanding the Tax
Calculation
Teddy Dumlao
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?

Key Questions
Education
Equalization
Assistance
Prop 301
Income & Sales Tax
Sales Tax Initiative
Bonds,
Overrides
Primary
Levy
Property Tax - Primary
Property Tax - Secondary
Gilbert
Property Taxes
$ per Student
Roosevelt
Property Taxes
$ per Student
Disparity of tax rates to support
education
 Heavily reliant on property taxes
 Disparity of Funding

Scottsdale
Property Taxes
$ per Student
Problems with Old Model
Equalize Tax Rates
 Decrease reliance on property taxes
 Equalize per-pupil spending

◦ “… a general and uniform public school
system…”
1980 Tax Reforms
Property Values and the Levy
Qualifying Tax Rate
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.
 2014 Gilbert Median Value increased to
$159,000 (That is good news!)

Full Cash Value
Cash
Primary
Secondary
Total Cash Requirements
Primary Tax
Secondary Tax
4.0884
(-Homeowner Rebate)
$361.35
3.1106
Total Tax
$445.75
7.1990
$807.10
Gilbert Unified Property Taxes
Primary Tax
Secondary Tax
4.3518
(-Homeowner Rebate)
$360.75
2.7478
Total Tax
$373.98
7.0996
$734.73
Gilbert Unified Property Taxes
Year
Median Value
Rate
Amount
2012
$143,300
4.0884
$361.35
2013
$136,100
4.3518
$360.75
2014
$159,000
3.8692
$360.75
Primary Tax Rate and Amount

Number of Students (Average Daily Membership)
◦ Weighted to address higher needs like disabilities


Teacher Experience Index
Transportation Miles
Equalization Base

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
Qualifying Levy
Equalization Assistance
Equalization Assistance
Gilbert
Equalization
Assistance
Qualifying Levy
Property Taxes
$ per Student
Roosevelt
Qualifying Levy
Equalization Assistance
Property Taxes
$ per Student
Scottsdale
Cave
Creek
Qualifying Levy
Property Taxes
Qualifying Levy
Min
QTR
$ per Student
Equalization Base
Gilbert
Qualifying Levy
Equalization
Assistance
Property Taxes
$ per Student
Budget Limit
Budget Limit vs. Adopted Limit
Gilbert
Equalization
Assistance
Qualifying Levy
$5.5M
Property Taxes
Additional Cuts
$ per Student
Adopted Limit
Budget Limit vs. Adopted Limit
Higley
$ per Student
Mesa
$ per Student
Chandler
$ per Student
Gilbert
$ per Student
Per Pupil Funding
Primary
Secondary
Equalization
Assistance
$ per Student
Secondary Taxes
Capital
Overrides
Property Taxes
Bonds
Gilbert
M&O
Override
Primary
Secondary
Equalization
Assistance
Capital
Overrides
Property Taxes
Bonds
$5.5M
Gilbert
M&O
Override
$ per Student
Primary Tax Amount vs Tax Rate
Higley
$ per Student
Mesa
$ per Student
Chandler
$ per Student
Gilbert
$ per Student
Governing Board Budget Adoption
Per Pupil Funding
Voter
Approval
County Portion of Equalization
Assistance
Primary and Secondary Taxes
Homeowner’s Rebate
Your Tax Bill
Tax Comparison Worksheet

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.

Chandler $ per Student
Gilbert $ 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
Key Points