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Lower Moreland Township School District

Lower Moreland Township School District . Understanding Act 1 – Property Tax Relief Act. IMPORTANT NOTE!!!!!!!!!!!! .

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Lower Moreland Township School District

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  1. Lower Moreland Township School District Understanding Act 1 – Property Tax Relief Act

  2. IMPORTANT NOTE!!!!!!!!!!!! • On December 18, 2006, a mailing went out from the County Assessment office to let people know if their homestead has already been approved or a new application was mailed if one was not on file. • If anyone has not received either document please contact the County Assessment office at (610) 278-3761 or go to www.lmtsd.org and download the forms and send in. • Deadline for filing is 3/1/07!!!!!!!!!!!!!!!!!!!!!!!!!

  3. Act 1 – Major Provisions • Signed into law on June 27, 2006. • Mandated the provisions of Act 72 (with a few adjustments) that over 4/5 of the school districts in Pennsylvania voted against. • Will provide an allocation of gaming receipts (slot machines) when they become available – exact timing and amounts are uncertain at this time (no allocation for the 2007/08 school year). • Allows for a voter referendum to determine whether there should be a tax shift from property taxes to an additional earned income or personal income tax. • Put limits on school district budgets; any tax increases must be within a pre-determined index for property tax increases. Note: there are ten (10) exceptions per the law that a District can apply for that would increase the rate over the index. • The District had to create a Tax Study Commission to study existing taxes and make a non binding Earned Income Tax (EIT) or Personal Income Tax (PIT) recommendation for the purpose of reducing property taxes.

  4. Tax Study Commission • Met several times during the months of September, October, November and December. • Based on historical information, as well as on an analysis by Public Financial Management (PFM), the Tax Study Commission recommended an additional 1% EIT.

  5. Lower Moreland Township Board of School Directors Preliminary Ballot Question Language • Adopted preliminary language at 1/16/07 meeting. The language coincided with the Tax Study Commission’s recommendation. • Final vote on language will be at a Special Board meeting on 3/6/07.

  6. Language to Appear on Ballot Question at 5/15/07 Primary Election • “Do you favor imposing an additional 1.0% earned income tax? The revenue generated from the increased tax rate will be used to reduce taxes on qualified owner-occupied residential properties approximately up to $360 in the first year, potentially rising up to $601 in subsequent years. The current school district earned income tax rate is 0.5% and the current combined municipal/school district rate is 1.0%.”

  7. 2nd Year Collections @ 1.00% EIT What does this mean for me?? • 1st Year Collections @ 1.00% EIT Homestead Exclusion Value = $360 Total Inc. 1% EIT Homestead Variance $300,000 $3,000 (360) $2,640 $270,000 $2,700 (360) $2,340 $255,000 $2,550 (360) $2,190 $225,000 $2,250 (360) $1,890 $210,000 $2,100 (360) $1,740 $180,000 $1,800 (360) $1,440 $150,000 $1,500 (360) $1,140 $135,000 $1,350 (360) $ 990 $105,000 $1,050 (360) $ 690 $ 90,000 $ 900 (360) $ 540 $ 75,000 $ 750 (360) $ 390 $ 45,000 $ 450 (360) $ 90 $ 30,000 $ 300 (360) ($ 60) $ 15,000 $ 150 (360) ($ 210) $ 0 $ 0 (360) ($ 360)

  8. What does this mean for me? 2nd Year Collections at 1% EIT Homestead Exclusion Value = $601 Total Inc. 1% EIT Homestead Variance $300,000 $3,000 (601) $2,399 $270,000 $2,700 (601) $2,099 $255,000 $2,550 (601) $1,949 $225,000 $2,250 (601) $1,649 $210,000 $2,100 (601) $1,499 $180,000 $1,800 (601) $1,199 $150,000 $1,500 (601) $ 899 $135,000 $1,350 (601) $ 749 $105,000 $1,050 (601) $ 449 $ 90,000 $ 900 (601) $ 299 $ 75,000 $ 750 (601) $ 149 $ 45,000 $ 450 (601) ($ 151) $ 30,000 $ 300 (601) ($ 301) $ 15,000 $ 150 (601) ($ 451) $ 0 0 (601) ($ 601)

  9. Show Me the Money????(TaxBill Example) • Lower Moreland Township School District – 2007 Real Estate Tax Notice (EXAMPLE ONLY!!!!!!) Date: 7/1/07 Parcel Number: 123467890 Property Location: 555 Red Lion Road Millage/Tax Rate: 22.2014 mills Assessment: Original Assessment $210,000 Homestead Exclusion$ 27,070 Net Assessment $182,930 Millage rate times net assessment will be new total and will reflect projected homestead exclusion dollar amount or property tax savings. Example: $210,000 * .0222014 mills = $4,662.30 (original assessment) $182,930 * .0222014 mills = $4,061.30 (net assessment) 601.00 (homestead savings) Assumptions: Assumes 1% earned income tax, 2nd year (full year) collections and 100% homestead participation.

  10. Act 1 Winners & Losers • Winners may include: • Those individuals who do not have “earned income” (retirees). • Individuals who live in Lower Moreland but work in Philadelphia. • Losers may include: • Individuals whose earned income is above the break-even point. • Renters. • Those individuals who may own more than one home.

  11. Act 1 – What is next?? • Continue working on the school district preliminary budget. • Feb 19 – School District deadline to submit preliminary budget with proposed tax rate increases to Department of Education. • Feb 22 – School District deadline to publish notice in newspaper of intent to file petition with Court of Common Pleas in the judicial district in which the administrative office of the school district is located or request approval from the Department of Education for a referendum exception. • March 1 – Department of Education deadline to notify school districts that submitted preliminary budget whether the 2007-08 proposed tax rates are equal to or less than their Index. • March 1 – Deadline for homeowners to file a Homestead Application. • March 13 – School District deadline to hold public hearing on resolution authorizing referendum question for the May 2007 primary. • March 13 – School District deadline to adopt resolution authorizing referendum question for the May 2007 primary.

  12. Act 1 – What is next??(continued) • March 21 – Deadline for Court of Common Pleas or Department of Education to issue ruling on school district’s petition for referendum exceptions. • March 26 – School District deadline if the Court of Common Pleas or the Department of Education deny the request for referendum exception(s) to submit to county board of elections a referendum question seeking voter approval of tax rate in excess of index. • May 1 – Assessor provides each school district with a certified report with information on homestead properties. • May 15 – Primary Election

  13. Questions?????? • Contact Information: Nine Elected School Board Members: Dr. Murray Cohen, Board President Mr. Steve Lux, Vice President Dr. Barbara Breitman, Board Secretary Mr. Alan Steinberg, Board Treasurer Mrs. Dorothy Kueny, Member Mr. Michael Mueller, Member Mr. Cedric McKeever, Member Dr. Mark Elfont, Member Mr. David Deibert, Member Dr. MaryKay Feeley, Superintendent Dr. Marilyn Lake-DellAngelo, Assistant Superintendent Mark McGuinn, Business Manager • Phone: (215) 938-0270 • Website: www.lmtsd.org

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