Roseville District 623 Board Sets Preliminary Levy

Roseville School District 623 will be asking taxpayers for less money this year.  But that might not translate into lower taxes for homeowners.

The school board on Tuesday evening approved a preliminary levy that will raise $21,382,318 for the 2011-2012 school year, a decrease of .617 percent – or $132,836 –  from the $21,515,154 approved for 2010-11.

At this time, the figures are estimates, and may change slightly as the district receives final data from the state.  That data has been delayed because of the state government shutdown last summer. 

Final data will be available for a Truth in Taxation hearing at 6:30 p.m. Dec. 6.  At that time, district officials will present both budget and levy information to the public.  The board will approve the final budget and levy Dec. 20.

Allthough the district anticipates asking for less money from homeowners, property taxes are likely to rise for many residents, because the 2011 state Legislature replaced the homestead credit with a new program called the homestead market value exclusion.

Under the old law, owners of homes valued at less than $425,000 would receive a credit, or a reduction on the amount of their property taxes.  The state reimbursed the county for the credit.

Under the new law, a portion of the home’s value will be excluded from taxation. For example, 40 percent of first $76,000 of the home’s value will be excluded from taxation, and 9 percent of the home’s value above $76,000 will be excluded from taxation.  Homes valued at more than $425,000 would not be excluded from taxation.

This will mean more taxes for many people because

• The state no longer reimburses the county for the homestead credit, the entire levy must be borne by county taxpayers.
• The exclusion lowers the county’s tax base, which has led to an increase in property tax rates for most local taxing jurisdictions. A property tax rate is calculated by dividing the property tax levy by the total tax base.
• The exclusion may not be enough to offset increases in tax rates for services other than schools and the elimination of the homestead credit.