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Barbara J. Robinson NH Department of Revenue Administration Municipal Services Division

The School’s Role in Tax Rate Setting NHSAA Best Practices Conference Friday September 25, 2009 10:55 AM Salon C. Barbara J. Robinson NH Department of Revenue Administration Municipal Services Division. School’s Role in an Early Tax Rate. Submit forms timely Forms due 20 days after vote

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Barbara J. Robinson NH Department of Revenue Administration Municipal Services Division

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  1. The School’s Role in Tax Rate SettingNHSAA Best Practices ConferenceFriday September 25, 200910:55 AMSalon C Barbara J. Robinson NH Department of Revenue Administration Municipal Services Division

  2. School’s Role in an Early Tax Rate Submit forms timely Forms due 20 days after vote MS-25 Fin. Report Sept. 1 MS-24 Due Sept. 1 Review Coop./Reg.Apportionment ASAP Notify Town & DRA of special meetings; errors; changes, etc. Attend Tax Rate Interview

  3. Which Forms? • Posted Budget (MS26 or 27 or 26c) • Results of Vote MS22 • Minutes & Warrant • Ballot/vote (if SB2) • Deliberative session minutes (if SB2) • Estimated Revenues MS24 – Sept. 1 • Financial Report MS25 – Sept. 1

  4. Overview of the Tax Process State Grants calculated by DOE State Ed. Tax Calculated by DRA Your Budget Preparation Hold Hearing(s) Post Warrant & Budget Town/School/County/Vill. Dist. Meeting Votes on Budget Minutes/Forms to DRA to Review (April) DRA Review More Forms after Sept. 1 + Final Review Coop/Regional Apportionment Tax Rate = $

  5. RSA 21-J:35Setting of Tax Rates by Commissioner • I. The commissioner of revenue administration shall compute and establish the tax rate of each town, city, or unincorporated place.

  6. RSA 21-J:35Setting of Tax Rates by Commissioner • II. To compute and establish the tax rates of towns, cities and unincorporated places under paragraph I, the commissioner shall examine the reports required under RSA 21-J:34 to ensure that:        (a) All appropriations have been made in a manner which is consistent with procedural requirements established by statute.        (b) No appropriations have been made which are prohibited by statute.        (c) All revenues have been estimated accurately and in a manner which is not prohibited by statute.        (d) All calculations are correct.

  7. RSA 21-J:35Setting of Tax Rates by Commissioner • III. If the commissioner finds that appropriations were made in a manner which is inconsistent with statute he shall delete the appropriation or that portion in question.

  8. RSA 21-J:35Setting of Tax Rates by Commissioner • IV. If the commissioner finds that the estimated revenues included are inaccurate or inappropriate he shall adjust the estimates in question.

  9. 1st Review ProcessMS26/27 & MS22, Minutes & Warrant • Review meeting documents • Procedural requirements for appropriations [RSA 21-J:35,II (a)] • Appropriations for legal purpose [RSA 21-J:35, II (b)] • Disallow or technical assistance letters • Early DRA Review = Early Fixes

  10. 2nd Review ProcessMS-1 Other Forms • MS-1 Equalization Group reviews it • MS-4 & MS-24 Revenue adjustments (RSA 21-J:35,IV) • Appropriation adjustment when surplus for offsetting warrant article is insufficient. • MS-25 School financial report due Sept 1 • Coop Apportionment - DOE • Review Immediately

  11. Interview w/Town • Review Needs for the Year • Discuss Related Issues • Make Additional Revenue Adjustments • Town Fund Balance Amount to Use as Revenue -“Surplus” • Establish Overlay (RSA 76:6) • Calculate Tentative Rate • Final Rate Process Back at DRA

  12. Statewide Enhanced Education Tax Amount Calculated • DOE – Calculates Grant Amounts • DRA/DOE – Statewide Enhanced Education Tax (SWEET) Calculated • For 2009 Calculation: • 2007 Equalized valuation w/out utilities (2 yr. Back) * $2.135 (a rate to get $363 million) = state tax warrant

  13. Calculating Municipal Rate per $1000/value • Gross Appropriations • less Revenues plus Overlay plus War Service Credits less Shared Revenue divided by 2009 Locally Assessed Property Valuation (per line 21 of 2009 MS-1) x 1,000 = Municipal Tax Rate per 1,000

  14. Local Education Rateper $1000/value • Net School Appropriation • Less State Grants and State Tax • divided by • 2009 Locally Assessed Property Valuation • (per line 21 of 2009 MS-1) x 1,000 • = Local Education Tax Rate per 1,000

  15. Statewide Enhanced Education Rate • State Education Amount • rate producing $363 million = $2.135 • $2.135x 2007 Equalized Value w/out Utilities • Divided by • 2009 Locally Assessed Property Valuation • Without utilities • Per line 23 of 2009 MS-1 x 1000 • = State Education Rate per 1,000

  16. County Rate • County Net Appropriation • x town’s 2008 equalized value as % of total county • = Town’s County Assessment divided by 2009 Locally Assessed Property Valuation Per line 21 of the 2009 MS-1 x 1000 = County Tax Rate per 1,000

  17. Village District(s) Rate(s) • Net Appropriation • divided by • 2009 Locally Assessed Village District Valuation • X 1000 • = Village District Tax Rate per 1,000

  18. Tax Collector’s WarrantRSA 76:10, II Be Within ½% • May Need New MS-1 & Tax Rate • But Why is it Different? • Tax collector data base different from assessor • MS-1 doesn’t match data base • Rounding • Incorrectly billing the utilities • Negative rate due to a credit • Check exemptions/inventory penalties

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