Taxes & Mill Levies

TAX AND LEVY INFORMATION


Tax Rates and Basic Calculations

Taxes and Levies in USD 377

General Fund is 20 mills - same for every public school district in the state.  

LOB is 22.98 mills.  Districts are allowed to adopt a local option budget of up to 31 percent of their general fund budget plus special education state aid.  USD 377s LOB budget is currently at 30 percent of the General Fund budget.

Bond and Interest mill levy - 


Homeowner – Tax Rate 11.5% of Assessed valuation.  

  • Median cost of USD 377 home is approximately $70,000


Commercial Business 25.0% Tax Rate

Agriculture Property 30.0% Tax Rate

  • Dry Crop Land - (Median Use Value = $53/acre)
  • Grass Land - (Median Use Value = $10/acre)
     

USD 377 Mill Levy for 2012-2013

Types of School District Mill Levy Taxing Mechanisms

General Fund - The general fund is financed first by the 20 mill statewide property tax levy, and certain other “local effort” deductions, such as federal impact aid. 

What does this mean for the SD 377 taxpayer?

For general fund only, the first $20,000 is subtracted from the market value of the house to arrive at the assessed valuation of the house.  For example, a house with a market value of $100,000 would be reduced to $80,000 ($100,000 minus the $20,000 exemption) for general fund only.

  • The General Fund is set at 20 Mills for all USDs across the state.

Example of how to calculate General Fund Taxes for a $70,000 house:

  • $70,000 - $20,000 = $50,000 (the first $20,000 of a home is not taxable)
  • $50,000 X 0.115 (11.5%) = $5,750 (value used to calculate taxes)
  • $5,750 X 0.02 (20 mills or 20/1000) = $115.00 a year 

 

 

Supplemental General Fund or LOB – The LOB fund supplements the General Fund and is set at a maximum of 30% of the General Fund.  The LOB is equalized by the state.  The state subsidizes us 47% for money raised through the LOB, in other words it will cost the local taxpayer 53 cents for every dollar generated in the LOB fund.

  • The LOB mill levy for USD 377 is 22.378 mills.

 

Capital Outlay Mill Levy – The state does not provide any equalization funding for the Capital Outlay Mill Levy, which means the local taxpayer bears 100% of the tax burden.  The board of education of any school district may make an annual tax levy at a mill rate not to exceed the statutorily prescribed mill rate for a period of not to exceed five (5) years, upon the assessed taxable tangible property in such school district for the purposes specified in this act.

  • USD 377 does not have a Capital Outlay Mill Levy.

 

Bond and Interest – Taxes collected to pay for new building or capital upgrades to existing structures.  Currently Bond & Interest is equalized by the state.  The equalization rate for USD 377 is 23%, which means the state kicks in $230,000 for every million dollars in Bond & Interest.  

  • USD 377 currently has no Bond indebtedness.

Atchison County School District Mill Levies

The following table compares USD 377 Mill Levies with neighboring school districts. 

USD

General Fund

Supp Gen (LOB)

Capital Outlay

Bond & Interest

Rec Commission

Total

#377

20.00

22.38

0.0

0.0

0.0

42.38

#335 Jackson Hts

20.00

23.03

0.0

8.59

0.0

51.62

#338 Valley Falls

20.00

26.10

0.0

9.23

1.0

56.33

#339 JCN

20.00

29.59

4.0

9.61

0.0

63.20

#409 Atchison

20.00

22.49

3.0

14.44

2.8

62.73

#430 Horton

20.00

22.25

0.0

9.63

0.0

51.88

#449 Easton

20.00

24.41

1.8

10.97

0.0

57.18


Calculating Your Taxes

General Fund + LOB + Capital Outlay + Bond & Interest = Total USD #377 Mills

General Fund........................................................................ 20.00 Mills                               

Supplemental General (LOB).............................................22.38 Mills

Capital Outlay Mill Levy..........................................................0.00 Mills

Bond & Interest Mill Levy.......................................................0.00 Mills

USD 377 Total Mill Levy.............................. 42.38 Mills



 

Example of USD 377 Property Taxes on a $100,000 Residential Home

 

General Fund

LOB

Market Value of House

$100,000

$100,000

$20,000 GF Exemption

- $20,000

----

Net Market Value of House

$80,000

$100,000

Assessment Rate for Homes

X 11.5%

X 11.5%

Assessed Valuation - Value of Home that Tax Rate is applied to

$9,200

$11,500

Mill Rate

20 Mills (.020)

22.354 Mills (.02238)

Property Tax

$9,200 x .020 = $184.00

$11,500 x .02238 = $257.37

Total Annual School Property Taxes = General Fund + LOB + Capital Outlay Mill Levy + Bond & Interest Mill Levy

Total Annual School Property Taxes = $184.00 (GF) + $257.37 (LOB) +$0.00 (CO) + $0.00 (B&I)         =       $441.37


 

BOND ISSUE MILL LEVY EXAMPLES

The following examples are used to estimate the impact of a 10 mill Bond issue – 10 Mills (.010 decimal format)

We used 10 mills as an example because it is easier to convey how taxes work when you use multiples of ten.  This example is a hypothetical example used for demonstration purposes only!

 

Example #1 Residential Property Valued at $100,000  The Assessment rate on residential is 11.5%

Appraised Value or Market Value = $100,000 home

Taxing Rate for Residential = 11.5% (.115)

Assessed Valuation Calculation                  $100,000 X .115 = $11,500 assessed valuation (AV)

Property Tax Increase Annual Cost Formula is Assessed Valuation X Mill Levy in Decimal Format

            Annual Tax Increase = $11,500  X 10 Mills (.010) = $115.00 per year in new taxes

            on a Ten Mill Bond Issue

 

Example #2 – Agriculture Property.  

The Assessment rate on Agriculture Land Devoted to Crop Production is 30.0% of the Use Value.  Agriculture land is NOT based on market value, but is based on its income or productivity. (K.S.A. 79-1476) Use Value appraisal is based on an eight year average of yields, income, costs and soil production capabilities.

Click here to download examples of the tax increase on four Atchison County agricultural properties using a ten mill Bond Issue example


 

YOUR ASSESSED VALUE

Assessed value is calculated as follows:

Appraised value x assessment % = assessed value

$100,000 house (AV) x 11.5% (Residential) - $11,500 assessed value

Land and buildings are classified and assessed at the following percentage of appraised value.  Property class assessment percentages are set by the State Constitution and cannot be adjusted by the county.

Property Class Tax Rates

11.5 % - Residential:  includes homes, apartments and condominiums, residences on farm home sites.

12.0 % - Vacant Lots:  vacant land with no improvements

12.0 % - NFP:  real property owned and operated by not-for-profit organizations 

25.0 % - Commercial:  real property used for commercial or industrial purposes

25.0 % - Ag Imprv:  improvements on land devoted to agricultural use

30.0 % - Ag Land:  land devoted to agricultural use

30.0 % - Other NEC:  all other real property not elsewhere classified

The above classifications of property are appraised at “market value”, except Ag Land.  Ag Land is appraised at “use value”.

 

Use Value for the Appraisal of Agricultural Land

1.                   Agricultural land is not based on market value, as the Kansas Constitution requires agricultural land to be valued based on its income or productivity.  This commonly called “use value” appraisal.  Kansas Statutes Annotated K.S.A. 79-1476 requires that an eight-year average of landlord’s net income be used for determining the agricultural use value.  This use-value system is based on an eight-year average of yields, income, costs and soil-production capabilities.

2.                   In Atchison County, separate use value estimates are calculated for different agricultural land types; dry land, irrigated and pasture or grass.  Historical data is always used.  Current bad years are not immediately reflected, just as any good years do not have an immediate impact.  The sale price of agricultural land has no bearing upon the value for tax purposes as the value is based upon use value.  The County Appraiser’s Office does not set these values; their function in agricultural land valuation is the determination of land use.

3.                   By legislation the Division of Property Valuation is required to make a determination of value for each of the various soils found in each county and to furnish those values to each county appraiser.  Visit Property Valuation Division’s web site at http://www.ksrevenue.org/pvdaguse.htm to view the current year’s Ag use values and soil types, as well as other useful information pertaining to the valuation of agricultural use values.