What is the proposed ballot issue?

Referred measure 3B: Increased funding for education in School District 51 onlyShall taxes on peoples’ property (house, land, or

business) in School District 51 be increased 7 mills for six years to raise $12.5 million each year? (Example: homes valued at $100,000 would have about an additional $55.72 added taxes each year.) These funds will go directly to School District and would be used for but not limited to:◦ Rehiring teachers and restoring the days that have been

cut◦ Purchasing technology to improve instruction◦ Help ease future cuts

What is proposed?Raise property taxes on peoples’ property

(house, land, or business) only in School District 51

Raise the school district mill levy by 7 mills Raise $12.5 million each year for 6 yearsThese funds will be used for but not limited

to:◦ Rehiring teachers and restoring the days

that have been cut◦ Purchasing technology to improve

instruction◦ Help ease future cuts

How much will it cost?

It will raise property taxes on people who own property (house, land, or business) in School District 51.

How much it will cost each person depends on the value of their property.

The monthly tax impact is about $4.62 per $100,000 of a home’s market value.    

Why did the school board put this on the ballot? School District 51 has been forced to cut its budget by

approximately 20 percent over the past three years, totaling $28 million, due to less funding from the State of Colorado. A loss of additional funding from the State is expected for the 2012-13 school year.

To balance the budget, District 51 has reduced more than 70 administrative and support positions, reorganized services and departments, and cut 80 teaching positions resulting in higher class sizes. Staffing has decreased while the same numbers of students continue to enroll and state requirements increase.

To help minimize the impact of the cuts and anticipated future reductions in state funding.

What do those who oppose this say?Schools can be run using less money

so there is no need to raise taxes.

Adding taxes at this point will make it difficult for people to spend money elsewhere and to help the economy.

Businesses are already having a tough time and will do worse with an added tax burden.

What do those in favor of this measure say?Schools need money to effectively teach

what needs to be and is required to be taught.

The funding that has been cut already has made it difficult to teach students effectively.

Paying now to educate students will help businesses in the long run by creating an educated workforce and will help attract businesses to the area.

What are Property Taxes?

Property taxes are the taxes the owner of the property is required to pay to support the government where the property is located.

The property tax rate is usually given as a percentage of the value of the property. This is known as the mill levy.

Forms of property tax can vary depending on the location.

Are Property Taxes the same as Income Taxes?

No.

Income taxes are based on how much money you earn.

Property taxes are based on the value of the property you own.

There are three types of property:

Land Improvements to land (such as buildings) Personal property (such as boats and RVs) Real property (also called real estate) means

the combination of land and improvements. This would be most homes.

Under a property tax system, the state requires an appraisal of the monetary value of each property, and tax is assessed in proportion to that value.

How is property value determined?

The actual value is the amount it is estimated it could be sold for, called the market value. The actual value is based on sales that occurred within the last 18 month period. Those sales indicate the market value of specific types of properties.

For other nonresidential types of properties or others of an unusual nature (of which there are few), other methods are used.

Can they just raise taxes?

The amount of tax raised can't automatically be adjusted to account for inflation or increased enrollment. Thus, school districts must go back to the voters on a regular basis to ask to override the current mill levy in order to keep up with inflation and growth.

Colorado taxes provide some funds for school districts. The state law directs how school districts can get additional funds for operating schools.

School districts are allowed to add operational funds by asking voters to raise or override their mill levy.

When a school district has capital needs, such as updating buildings or constructing new buildings, the funding mechanism is a bond issue. Bond issue funds can NOT be used for operational expenses, which include salaries.

Who sets the Mill levy?

Mill levies are set each year by taxing authorities such as school districts, the county, cities, fire, water and sanitation districts, and others.

These entities provide tax-supported services and are listed on a tax notice.

The County Assessor then sets the assessment rate to cover those services.

How are property taxes calculated?

Property Taxes = Actual Value X Assessment Rate X

Mill Levy

The assessment rate on residential properties is a little less than 8% in Mesa County.

The assessment rate on nonresidential properties is fixed by law at 29%.

Example 1:

For a home valued about $100,000 the proposed increase of 7 mills would be

$100,000 x 8% assessment x 7 mills

which is $100,000 x .08 x .007 = $56 in

new taxes per year or $4.67 per month

Example 2:

For a home valued about $150,000 the proposed increase of 7 mills would be

$150,000 x 8% assessment x 7 mills

which is $150,000 x .08 x .007 = $84 in

new taxes per year or $7 per month

Figure your own:

Determine your home value H $ H x 8% assessment x 7 mills

which is $ H x .08 x .007 = $____ in new

taxes per year (divide by 12 for monthly amount)