|Date Requested:March 07, 2005
Time Requested:11:41 AM
| FUND(S) |
Sources of Revenue
Legislation creates:Neither Program nor Fund
Effect this measure will have on costs and revenues of state government.
|Effect of Proposal||Fiscal Year|
|1. Estmated Total Cost||0||0||0|
|Repairs and Alterations||0||0||0|
|2. Estimated Total Revenues||0||0||0|
3. Explanation of above estimates (including long-range effect):
The purpose of this bill is to provide relief from property taxes for property damaged or destroyed in a declared disaster by the Governor or the federal government.
Any change in the assessed valuations will affect the local share calculation under the Public School Support Program. The taxable assessed valuations are multiplied by the applicable regular levy rates to arrive at projected regular levy gross tax collections. This amount is multiplied by 98% and further reduced by an allowance for uncollectibles (5% of gross) and the allowance for the assessor’s valuation fund (between 1% and 3%, depending on the county). In addition, funding for the Growth Counties Facilities Act is subtracted to arrive at local share. The amount of local share is subtracted from the total allowances calculated under the PSSP, Steps 1 through 7, to arrive at the amounts to be distributed in the form of state aid.
Therefore, any reduction in assessed valuations will result in an increase in state aid funding under the PSSP.