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Porter Township School Corporation

Porter Township School Corporation. Financial Moment November 2013. Circuit Breaker. Beginning with 2010 tax bills, property owners have been entitled to a circuit breaker cap on the amount of property taxes over : 1% of homestead properties; 2% of residential properties;

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Porter Township School Corporation

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  1. Porter Township School Corporation Financial Moment November 2013

  2. Circuit Breaker Beginning with 2010 tax bills, property owners have been entitled to a circuit breaker cap on the amount of property taxes over: • 1% of homestead properties; • 2% of residential properties; • 2% of agricultural land; • 2% of long-term care facilities; • 3% of nonresidential properties; and • 3% of personal property. (In 2009, the circuit breaker caps were 1.5%, 2.5% and 3.5%.) Taken from the Indiana Circuit Breaker Fact Sheet

  3. Circuit Breaker Tax levies are collected by: • counties; • townships; • cities and towns; • school corporations; • library districts; and • other special districts to provide services. Taken from the Indiana Circuit Breaker Fact Sheet

  4. Circuit Breaker Example: Homestead valued at $300,000 Tax liability: $5100 1% circuit breaker cap: $3000 Taxpayer receives circuit breaker credit of $2100

  5. HEA 1072 (2012) and SEA 517 (2013) • HEA 1072 created the “protected taxes” concept and worsened the impact of the tax caps on schools • Protected taxes meant that debt service funds had to be met first at the expense of other funds • SEA 517 was introduced to allow school corporations to flexibly allocate circuit breaker losses across funds

  6. Impact on Districts

  7. Impact on Districts

  8. Local Impact

  9. Our Impact

  10. Future Forecast • Continues to impact more districts • Forecast is that eventually all districts will be significantly impacted • Need to continue to talk to lawmakers

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