As home values appreciate in the district, tax rates are reduced so that the aggregate tax collections for the school do not increase. The graphics at the end of this article show an assumed 24% increase in district taxable value, and the impact on 3 different homes. The graphic is showing ONLY taxes calculated for the district.
As the chart shows, 3 different homes appreciate at 3 different rates — Home A at 15%, Home B at 20%, and Home C at 30%. The taxes calculated for these homes in 2022 are shown at the bottom of the chart.
Although home values are increasing, the calculated taxes are not increasing by the same amount. In fact, Home A’s tax bill would fall by 1.37%; Home B’s tax bill would only increase 2.91%; and Home C’s tax bill would increase 11.49% even though Home C’s value increased by 30%. That’s because the tax rate falls from 34.769 mills (or $1,217 annually per $100,000 of market value) to 29.784 mills (or $1,042 annually per $100,000 of market value). So, while market values increase by 24%, tax rates will fall by 14.4%.
What does this mean for the Pickerington Schools 2.80 mill bond issue that is on the November 8, 2022 ballot? Even though the levy is a new levy, the existing millage for aggregate bond collections, even if the bond issue passes, is forecasted to fall by ½ a mill. This will make the new levy ‘feel’ like or be similar to a renewal in that tax rates won’t increase while the community continues its commitment.
Original source can be found here.
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