|
How to Calculate School Taxes |
|
|
|
|
Friday, 28 September 2007 |
|
Waukesha Forward has published their new newsletter and much of what they said, we agree with-the support the AB447, AB448 and AB449, the call on the union to slow down the rate of growth of teachers' salaries. However, while we appreciate the board's attempt to slow down the administrative salaries, we believe they should have been frozen. If our district adminstrative costs were brought into line with other districts (per position comparison), our district could have saved hundreds of thousands (see WaukeshaForward.org). In addition to slowing down the rate of growth in teacher salaries, we also believe there needs to be changes in the insurance--copays AND contributions to premiums. These are all things that the Waukesha Taxpayers League has supported for a very long time.
Now that we are coming into tax season, we will give a lesson on how to calculate school taxes. This has been an area of contention we have had with the school district and the way the tax increases get underplayed. Sometimes, the newspaper catches the misreprentation and sometimes they don't.
House Valued @
$250,000 in 2006 |
7.78
(2006/07 rate) |
$1945.00
(total 2006/07 tax) |
House Valued @
$265,000
in 2007 |
8.00(2007/08
rate) |
$2120.00(total 2007/08
tax) |
Even though the tax rate went up by 1 cent, the actual impact on a home owner will be over $100. (The above example shows $175.00) The School District adjusts the tax rate by the rate of growth districtwide. When the state determines the value of the school district each year, the value includes both new growth and inflation. In order to calculate the impact on a home owner correctly, inflation must be applied to the cost of the house. The district, in calculating the rate, used an 8% increase in value of the district. In reality, this 8% typically represents an approximate 2% increase in real value (new growth) and a 6% inflationary growth (as applied above). The exact impact per homeowner will vary, according to which municipality they live in, but will not be $2.50 cents as stated in the newsletter.
|
