Property tax-assessed valuation.






FY 2010

FY 2011

FY 2012





Anticipated Revenue (Decrease):













Source of revenue decrease:


Reduction of assessed value of “all other property” assessed at 9.5%. Reduction in assessed value will result in reduction of property tax revenues to local governments and the School Foundation Program




The above estimate is based on the assessment of “all other property” (assessed at 9.5%) for the 2008 tax year. The assessed value of all other property is forecasted to increase by 5% each year, according to January 2009 CREG projections.


It is estimated that the assessment of all other property for the 2009 tax year at the same amount of assessment for the 2008 tax year, and limiting the assessment in subsequent years to 102% of the preceding year, would decrease the assessed valuation by $274,800,000 in tax year 2009, by $453,400,000 in tax year 2010, and by $644,300,000 in tax year 2011.


In 2008, the average mill levy applied to industrial and all other property was 66.696 mills. Mill levies are assumed to remain constant.


The projected revenue decrease in the 12 mill property tax paid to the School Foundation Program is estimated at $3,300,000 for tax year 2009, $5,440,000 for tax year 2010, and 7,730,000 in tax year 2011. The projected revenue decrease in all other property taxes paid to local governments is estimated at $15,030,000 for tax year 2009, $24,800,000 for tax year 2010 and $35,240,000 for tax year 2011. The decrease in property taxes to local governments in FY 2010, FY 2011, and FY 2012 will decrease the 31 mills K-12 local resource, which will result in a combination of increased expenditures and decreased revenues to the School Foundation Program of approximately $8.5 million in FY 2010, $14.1 million in FY 2011, and $20.0 million in FY 2012


This bill shall apply to property taxes imposed on or after January 1, 2009, which will impact property taxes collected beginning in FY 2010.


Prepared by:   Dean Temte, LSO    Phone: 777-7881