The School’s Role in Tax Rate SettingNHSAA Best Practices Conference

Friday September 25, 2009

10:55 AM Salon C

Barbara J. RobinsonNH Department of Revenue Administration

Municipal Services Division

School’s Role in an Early Tax Rate

Submit forms timelyForms due 20 days after voteMS-25 Fin. Report Sept. 1MS-24 Due Sept. 1Review Coop./Reg.Apportionment ASAPNotify Town & DRA of special meetings; errors; changes, etc.Attend Tax Rate Interview

Which Forms?

Posted Budget (MS26 or 27 or 26c) Results of Vote MS22 Minutes & Warrant Ballot/vote (if SB2) Deliberative session minutes (if SB2) Estimated Revenues MS24 – Sept. 1 Financial Report MS25 – Sept. 1

Overview of the Tax Process

State Grants calculated by DOEState Ed. Tax Calculated by DRAYour Budget PreparationHold Hearing(s)Post Warrant & Budget

Town/School/County/Vill. Dist. Meeting Votes on BudgetMinutes/Forms to DRA to Review (April)DRA Review More Forms after Sept. 1 + Final ReviewCoop/Regional ApportionmentTax Rate = $

RSA 21-J:35Setting of Tax Rates by

Commissioner

I. The commissioner of revenue administration shall compute and establish the tax rate of each town, city, or unincorporated place.

RSA 21-J:35Setting of Tax Rates by

Commissioner II. To compute and establish the tax rates of towns,

cities and unincorporated places under paragraph I, the commissioner shall examine the reports required under RSA 21-J:34 to ensure that:        (a) All appropriations have been made in a manner which is consistent with procedural requirements established by statute.        (b) No appropriations have been made which are prohibited by statute.        (c) All revenues have been estimated accurately and in a manner which is not prohibited by statute.        (d) All calculations are correct.

RSA 21-J:35Setting of Tax Rates by

Commissioner III. If the commissioner finds

that appropriations were made in a manner which is inconsistent with statute he shall delete the appropriation or that portion in question.

RSA 21-J:35Setting of Tax Rates by

Commissioner

IV. If the commissioner finds that the estimated revenues included are inaccurate or inappropriate he shall adjust the estimates in question.

1st Review ProcessMS26/27 & MS22, Minutes &

Warrant Review meeting documents

Procedural requirements for appropriations [RSA 21-J:35,II (a)]

Appropriations for legal purpose [RSA 21-J:35, II (b)]

Disallow or technical assistance letters

Early DRA Review = Early Fixes

2nd Review ProcessMS-1 Other Forms

MS-1 Equalization Group reviews it MS-4 & MS-24 Revenue adjustments (RSA

21-J:35,IV) Appropriation adjustment when surplus

for offsetting warrant article is insufficient.

MS-25 School financial report due Sept 1 Coop Apportionment - DOE Review Immediately

Interview w/Town

Review Needs for the Year Discuss Related Issues Make Additional Revenue Adjustments Town Fund Balance Amount to Use as

Revenue -“Surplus” Establish Overlay (RSA 76:6) Calculate Tentative Rate Final Rate Process Back at DRA

Statewide Enhanced Education Tax Amount

Calculated DOE – Calculates Grant Amounts DRA/DOE – Statewide Enhanced

Education Tax (SWEET) Calculated For 2009 Calculation: 2007 Equalized valuation w/out

utilities (2 yr. Back) * $2.135 (a rate to get $363 million) = state tax warrant

Calculating Municipal Rate

per $1000/value Gross Appropriations

less Revenuesplus Overlay

plus War Service Creditsless Shared Revenue

divided by

2009 Locally Assessed Property Valuation(per line 21 of 2009 MS-1) x 1,000

= Municipal Tax Rate per 1,000

Local Education Rate per $1000/value

Net School Appropriation Less State Grants and State Tax

divided by 2009 Locally Assessed Property

Valuation (per line 21 of 2009 MS-1) x 1,000

= Local Education Tax Rate per 1,000

Statewide Enhanced Education Rate

State Education Amount rate producing $363 million = $2.135

$2.135x 2007 Equalized Value w/out Utilities

Divided by

2009 Locally Assessed Property Valuation

Without utilities Per line 23 of 2009 MS-1 x 1000

= State Education Rate per 1,000

County Rate

County Net Appropriation x town’s 2008 equalized value as % of total county

= Town’s County Assessment

divided by

2009 Locally Assessed Property Valuation

Per line 21 of the 2009 MS-1 x 1000

= County Tax Rate per 1,000

Village District(s) Rate(s)

Net Appropriation

divided by

2009 Locally Assessed Village District Valuation

X 1000 = Village District Tax Rate per 1,000

Tax Collector’s WarrantRSA 76:10, II Be Within ½%

May Need New MS-1 & Tax Rate But Why is it Different?

Tax collector data base different from assessor

MS-1 doesn’t match data base Rounding Incorrectly billing the utilities Negative rate due to a credit Check exemptions/inventory penalties