cauv revision impact on madison-plains school district tax collections

CAUV Revision Impact on Madison-Plains School District Tax Collections

Prepared April 2013

Tax Collections

Tax Collection Changes

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$4,500,000

$5,000,000

$5,500,000

$6,000,000

$6,500,000

$3,164,605$3,321,010

$4,070,445 $4,103,146

$5,382,248

$5,756,513$5,795,851

$6,033,438

COMBINED AGRICULTURE / RESIDENTIAL TAX REVENUES

CAUV RATE

CHANGE+$309 K

CAUV RATE CHANGE +

$222 K

8 MILL - 3 YEAR OPERATING

LEVY +$1.3 MILLION

5 MILL - CON-TINUOUS OP-

ERATING LEVY +$750 K

Question #1

Why have Current Agricultural Use Values (CAUV) changed so much?

Ohio Farm Bureau Video

http://www.youtube.com/watch?v=mtYv_xZHh8E

Ag Value Facts

Madison County Average Market Value / Acre = $4,500

Highest CAUV value in Madison County = $1,960

This equates to a 56% decrease in value for the most productive farm land in the county.

Average % of CAUV value to Market value in Madison County is 32%

QUESTION #2

If Farm CAUV values went up by 55% in 2011 then why did the schools tax revenues

only go up by 3.9% ($221,876)?

ANSWER #2:

Once a school levy is passed , the amount of money collected from that levy may not

exceed the amount received in the first year of collection.

(Except for Inside Millage, which is not Voted-in and New Construction)

Tax Payer Example: Homeowner

TAXYEAR

HOME MARKET VALUE

ASSESSED VALUE(-65%) MILLS

SCHOOL TAX

2010 $400,000 $140,000 X 31.53 = $4,4142011 $388,000 $135,800 X 27.43 = $3,724

Down: 3% Down:4.1m Down 16%Taxes on a $400,000 Market Value Home

Decreased On Average By :-$689.21

Tax payer Example: Farmer

TAXYEAR

FARMMARKETVALUE

FARM CAUV VALUE(-77%)

ASSESSED VALUE(-65%) MILLS

SCHOOL TAX

2010 $816,000 $183,600 $64,260 X 31.53 = $2,026

2011 $918,000 $399,840 $139,940 X 27.43 = $3,838

Up 13% Up: 78% Down 4.1m Up:89%Example assumes a 204 acre farm with the highest CAUV

values in Madison County.Market Value 2010 $4,000 / acreMarket Value 2011 $4,500 / acre

+$1,812

2011COLLECTIONS

2012COLLECTIONS

CHANGE IN COLLECTIONS

Farm Taxes $2,180,353 $2,941,822 $761,469 35%Homeowner Taxes $3,631,209 $3,091,616 -$539,593 -15%

TOTAL TAXES $5,811,562 $6,033,438 $221,876 3.9%

The 3.9% Increase in Taxes was due to the increase in property values times the inside millage rate of 5.1 mills. Taxes on Voted Millage Were NOT Increased.

TAX COLLECTION CHANGE

2011 2012$0

$1,000,000$2,000,000$3,000,000$4,000,000$5,000,000$6,000,000$7,000,000

$3,631,209 $3,091,616

$2,180,353 $2,941,822

Homeowner Taxes Farm Taxes