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Equalized Values

Equalized Values. What is the Equalized Value. Equalized Values are the statistical estimate of the full market value of taxable property reported for each municipality in the state. Uses of Equalized Values. Apportionment of property tax levies

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Equalized Values

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  1. Equalized Values

  2. What is the Equalized Value • Equalized Values are the statistical estimate of the full market value of taxable property reported for each municipality in the state

  3. Uses of Equalized Values • Apportionment of property tax levies • Counties, School Districts, Technical Schools and State Reforestation Tax • Allocation of State Aids • Calculation of Debt Limits • Comparability of municipal tax rates • Testing of municipal assessment equity • Equating manufacturing assessments • Levy limit calculations

  4. School District Value Development • Equalized Values – Municipality • Jan. 1 valuation date – August 15 release date • Equalized Values – School District • October 1 release date • If whole municipality is in one School District: • Entire municipality’s equalized values are included • Minus the Tax Increment District (TID) increment value • Referred to as TID OUT value.

  5. School District Value Development • If only part of municipality is in a School District: • Municipality’s equalized values divided according to percentage of assessed value in each school district • Assessed values reported to the Department of Revenue (DOR) by mid-September are used to divide municipality’s equalized values • Late assessments: DOR estimates using previous year’s assessed values to divide municipality’s equalized values • Minus the TID increment value • Potential inaccuracies with an estimate (e.g. large construction project)

  6. School Tax • A single school district can contain a dozen or more municipalities. Property tax levies of these districts are apportioned to each municipality on the basis of equalized value. For example, if a municipality has a contains 50% of the taxable value within a school district, its residents should pay 50% of the district’s tax levies.

  7. School Tax – Example – Assessed • If tax based on assessed value • Town A would pay 28.6% of $100,000 levy = $28,600 • Town B would pay 71.4% of $100,000 levy = $71,400

  8. School Tax – Example - Equalized • If tax based on equalized value • Town A would pay 50% of $100,000 levy = $50,000 • Town B would pay 50% of $100,000 levy = $50,000

  9. School Tax • In order to allocate both taxes and state aid fairly, equalization is necessary to measure taxable values in all municipalities by the same standard. • Assessed value is important for maintaining equity among individual taxpayers within the municipality • Equalized value maintains equity between school districts, municipalities and counties.

  10. Questions? • If you have any questions regarding this presentation, please feel free to contact the Business Office at 920-849-8109.

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