Ad Valorem – Everything you always wanted to know!

Ad valorem Requests October 1 to September 30 th Figure actual collection and anticipated collections (can use any of 3 prev. years) Homestead reimbursement (April and Sept) Source: Mississippi Code §

Calculation of the Base Add Ad Valorem Taxes Collect October to September Homestead Reimbursement April and September Ad Valorem tax escrow for the previous year Ad Valorem tax shortfall notes for the current year Deduct Ad Valorem tax escrow for the current year = Total Base

Net Ad Valorem Tax Request Add % increase (if applicable) New Programs ( ) Estimated Ad Valorem Tax on New Property Less Advalorem Tax Escrow =Net Request for operations Source: Mississippi Code § thru 107

AD Valorem Request General Obligation Bonds Three Mill/ Year Notes Shortfall notes Joint operated Vocational Center Site the code authority when you do your request Source: Mississippi Code § , 23 and

Property Tax Values Get a break down from your tax assessor Track the values from year to year Know how much new construction is included These will help you predict growth or decline in the tax base

How tax levies are determined Class I - Real Property - 10% Class II – All other real property – 15% Class III - Personal Property – 15% Class IV – Utilities – 30% Class V- Autos/Mobile Homes – 30% 1 mil = 1000 th of a dollar

How Tax Levies are determined

District Maintenance Total Assessed Valuation Less Over 65 Homestead exempt property Total Taxable Property Divide the Ad Valorem Request by the Total Taxable property = Millage rate

3 Mill and GO Bond millage Works the same as District Maintenance but omit the step of deducting over 65 exempt property The value of a 3 Mil mil or a GO Bond mil should be more than a District Maintenance Mil.

decrease same If a school district is at the 55 mills cap and have a decrease in assessed valuation, then the district can request the same dollar amount in ad valorem tax effort as last year. Source: Mississippi Code § (2)(a)

Ad Valorem Tax Escrow Recalculate ad valorem tax request using actual amounts received Fiscal year is October 1 st to September 30 th Use any of the three previous fiscal years in determining the base amount

Ad Valorem Tax Escrow Total Ad Valorem Tax Allowed Calculate total receipts of ad valorem tax received from July 1 st to June 30 th of the current year

Ad Valorem Tax Escrow Escrow if total receipts is more than ad valorem tax allowed If ad valorem tax allowed is more than total receipts than calculate shortfall Source: Mississippi Code §

Ad Valorem Tax Shortfall Cash basis ad valorem tax receipts from the school district fiscal year are less than the amount requested from the levying authority School district may issue promissory notes

Ad Valorem Tax Shortfall Revenue Shortfall Note shall be repaid in full, with interest, in three equal annual installments Source: Mississippi Code § and §

Ad Valorem Tax Collection Property taxes are due, payable and collectible by the tax collector on February 1 st School districts should receive funds by March 20 th

Vendor Tooling (b) County boards of supervisors and municipal authorities are authorized and empowered, in their discretion, to exempt up to thirty percent (30%) of the true value of vendor tooling owned by a tier one supplier from ad valorem taxation. Source: Mississippi Code §