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
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