Impact of Property Tax Reform On Counties FY15 – FY 17 Budgets

1. Impact of Property Tax Reform On CountiesFY15 – FY 17 Budgets ISAC Board of Supervisors November 14, 2014

2. Overview FY 15 Budget Impact • Utilities: Telecommunications • Railroads • Credit for Commercial / Industrial • Residential Rollback • Agricultural Rollback

3. Overview FY 16 Budget Impact • Utilities: Telecommunications • Railroads • Credit for Commercial / Industrial • Residential Rollback • Agricultural Rollback

4. Overview FY 17 Budget Impact • Credit for Commercial / Industrial • Multifamily Residential Rollback • Residential Rollback • Agricultural Rollback

5. FY 15 Impact Railroads By statute, % for railroads must equal the lowest of the %’s for commercial, industrial and utility properties. Example: Scott County Taxable Value Tax Revenue Revenue Loss • FY 14 $ 9,285,627 $ 57,849 • FY15 $ 8,532,360 $ 50,499 $ 7,350

6. FY 15 Impact Telecommunications Exemptions Generally the exemptions average is 15% Auditors have FY 15 actual numbers Example: Scott County Assessed Value Exempted Value Revenue Loss 43,580,362 6,124,702 $38,188

7. FY 15 Impact Commercial and Industrial Rollback 95% • Credit will offset levy rate one for one • Scott County Estimated Claim: $755,000 • Multi- family residential still considered commercial

8. FY 15 Impact Allowable Growth 4% to 3% FY 15 Residential Rollback 54.4002% Lower Growth 0.5% Example: Scott County FY15 Growth 0.5% = $275,979

9. FY 15 Impact Agricultural Rollback 43.3997% Very hard to quantify because of varied assessed values in the State for Jan. 1, 2013 Example: Scott County

10. FY 15 Impact • Total Revenue Loss for Scott County at current urban levy rate

11. FY 15 Impact Example: Scott County Overall taxable value increase 3.88% New construction, revaluation and rollbacks $1,618,000 3.4% new revenue for budget

12. FY 16 Impact Railroads By statute, % for railroads must equal the lowest of the %’s for commercial, industrial and utility properties. Example: Scott County Taxable Value Tax Revenue Revenue Loss • FY 15 $ 8,532,360 $ 50,499 • FY16 $ 8,105,742 $ 47,841 $2,658

13. FY 16 Impact Telecommunications Exemptions Generally the exemptions average is 30% Auditors will have FY 16 actual numbers Example: Scott County Assessed Value Exempted Value Loss Revenue 43,580,362 12,249,403 $76,375

14. FY 16 Impact Commercial and Industrial Rollback 90% • Credit will offset levy rate one for one • Scott County Estimated Claim: $1,600,000 • Multi- family residential still considered commercial

15. FY 16 Impact Allowable Growth 3% Estimated FY 16 rollback at 0.5% lower growth Example: Scott County

16. FY 17 Impact New Multi Family Residential Rollback 86.25% Value is removed from FY 16 Commercial and Industrial Property Tax Replacement Claim *Thereafter 3.75% increase in Rollback Until Rollback Meets Residential Percent

17. Summary of Loss RevenueFY15 - FY17Example: Scott County

18. Thank You.Questions?