2017-2018 Tax Information
Herman-Neosho-Rubicon 2017-18 Tax Information
In property taxation, the amount of tax to be raised divided by the value of property to be taxed is a “mill rate” or “levy rate”. The rate is often expressed in mills of the tax per dollar of property value. A mill is equal to $1.00 of tax for each $1,000 of assessment, hence the term "mill rate”. Taxes on individual properties are calculated by multiplying the mill rate by the assessed value of the property and dividing by 1,000. Keep in mind that the mill rate on a tax bill reflects the increases and decreases of all taxing jurisdictions in your municipality such as: state tax, county tax, town tax, K-8 school tax, high school tax, and technical college tax. For example, a property with an assessed value of $175,000 located in a municipality with a total mill rate of $20.50 would have a property tax bill of $3,587.50 per year. Residential taxes may also change if there is a change in the assessment of the property. Assessment changes occur as the result of additions to the property or changes in the market value of the property.
Prior to consolidation, The Department of Public Instruction (DPI) provided HNR with statistics that were based on a “past practice” model of calculation. For school year 2016-17, DPI changed how they calculated consolidation aid by applying a “fresh look” approach. This different approach resulted in a negative variance in HNR funding by approximately $141,000 which HNR was unable to collect via the tax levy. As a result, the taxes last year were artificially low due to the “fresh look” calculation. Therefore, our mill rate last year was deflated by $.38 more than it should have been which was an artificially low tax levy. If DPI would have calculated our consolidation aid based on “Past Practice” our mill rate would have been $6.50 instead of $6.12.
Over the course of the 2016-17 school year, HNR administrators engaged in a four-month long conversation with DPI explaining the variance that the district experienced last school year. DPI was able to recognize that the calculations for 2016-17 were less that projected prior to consolidation and agreed to return to calculating using the “past practice” method. This action not only allowed HNR to return to full funding as projected prior to consolidation but also allowed the district to recoup the $141,000 that was not collected in 2016-17. As a result, the tax levy for 2017-18 is $6.92. This is $.38 higher than originally projected as the district is regaining what was lost in 2016-17 due to DPI’s consolidation calculation.
The following graphs show the mill rate comparison based on a pre-consolidation estimate, the actual mill rate, and the forcasted estimate. The second graph shows a ten year history of the three districts mill rate leading into consolidation as well as the two years since consolidation.