School Bonds & Levies and Property Values

School Bonds & Levies and Property Values


School Bonds & Levies and Property Values As election season approaches, signs may start
to appear around your community asking for support on a bond or levy. You might ask yourself,
“what exactly does that mean for my household?” and “If property values change, what can
I expect?” So, let’s start from the beginning: WHAT
IS THE TAX RATE? The Tax Rate is used to calculate the property
tax that a property owner pays. In the case of schools, when voters go to the polls and
vote on a school ballot measure, they are deciding whether a set dollar amount should
be collected through taxes. The Tax Rate is simply the amount of money that needs to be
collected for each $1,000 of total assessed valuation to reach the total dollar amount
that the voters have approved. HERE’S HOW IT WORKS: Let’s use Tiny Town
School District as an example. Tiny School District has four houses, and each house is
assessed at $100,000. The district held a Tiny Town Election and voters approved a $1,000
bond or levy. Because property values are the same, each household pays the same amount
to reach the total voter approved amount of $1,000. Now, let’s say that the homes in Tiny Town
are reassessed, and now the homes have increased in value. Home A is now valued at $200,000,
Home B is valued at $150,000, Home C is valued at $200,000,
Home D is valued at $250,000. Because the assessed values have changed,
each house now pays a different amount toward the bond or levy. However, the district collects
only the total amount that voters approved. No matter how much the property values change,
Tiny Town School District is still only collecting $1,000. So what happens if more houses are built in
Tiny Town? Well, more property in a school district means
more owners are paying a share of the bond or levy. The total bond or levy amount is
divided among more property owners, meaning each property owner pays less. However, the
total amount collected for the school district remains the same. To learn more about property taxes for bonds
and levies, visit your County Assessor’s website or contact your local school district
office.

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