1. Mill Levies & Property Taxes
11/30/2018
Mill Levies & Property Taxes
Mary Lynn Christel
Public School Finance and Operations Division –
October 2015

2. Agenda
Definitions
Timeline
Assessed Valuations
Mill Levies
Questions

3. Definitions Mill AV – Local Share
11/30/2018
Definitions
Mill
a mill equals one-tenth of one percent (.001)
AV –
Assessed value is a percentage of the actual value of a property.
Residential property is assessed at 7.95%
Commercial and most other property is assessed at 29%
Local Share
Local share is comprised of property taxes collected through the levying of the total program mill and specific ownership taxes

4. 11/30/2018
Timeline
August 25 - assessors send preliminary AVs to districts and CDE
2015 is reassessment year (odd years)
November 23 – CDE sends preliminary certification worksheets to districts
No later than December 10 - assessors send final AVs to districts and CDE
No later than December 15 – district Board of Education certifies mill levies by Board resolution and submits to county commissioners
Mills levied will generate property tax revenues for current fiscal year.

5. 11/30/2018
Timeline (continued)
December - AVs are plugged into the school finance formula and the local share is determined based upon mill levies
Legislative Council bases estimates for the following year on the December actuals – built into School Finance Act
Spring 2016 – property taxes collected

6. Property Tax & Assessed Values
11/30/2018
Property Tax & Assessed Values
Mill levies
Equals one-tenth of one percent (.001)
Assessed values based on percentage of actual value
Residential – 7.96% of actual
Most other (commercial) – 29%
In , total program mill levies were frozen at 27 mills or less
Four districts that have not passed TABOR elections are a bit different
AV X mill levy = property taxes
$10,000,000 AV X .027 mills = $270,000 property tax

7. Mill Levies Mill Levy Certification Worksheet
11/30/2018
Mill Levies
Mill Levy Certification Worksheet
Total Program - mill levy set to generate local share of total program funding
Capped at 27 mills. Cannot go up from prior year.
Categorical Buyout
Used by district which are able to fully fund total program
Voter approved overrides – mill levy approved by voters to provide funding for district
Might be a certain dollar amount or a fixed mill
Hold harmless and excess hold harmless – result of 1994 Act

8. Mill Levies (continued)
11/30/2018
Mill Levies (continued)
Abatements – mill levy to recapture property tax refunds or cancellations based on revaluations
Will change from year to year
Bond Redemption – mill levy set to generate funds to pay off debt principal and interest (voter approved)
This levy can potentially float up and down depending on the AVs
Transportation Fund – funds excess transportation costs (voter approved)

9. Mill Levies (continued)
11/30/2018
Mill Levies (continued)
Special Building & Technology Fund – funds technology no more than 10 mills, no longer than 3 years (voter approved)
Full Day Kindergarten Fund – funds implementation of full day kindergarten excess costs (voter approved)
Other – Charter Schools (voter approved)

10. Assessed Valuation Gross Assessed Valuation Net Assessed Valuation
11/30/2018
Assessed Valuation
Gross Assessed Valuation
(less) Tax Increment Financing (TIF)
Net Assessed Valuation
Abatements/Refunds (total across all counties)
Full Funding Mill Levy – mill levy district would have to certify if no state aid
Funding received from state = state share
District must certify exact same mill levy across all counties.

11. Mill Levy Limits Voter Approved Override Limits
11/30/2018
Mill Levy Limits
Voter Approved Override Limits
Override calculation worksheet
25 percent of total program funding (before negative factor) plus FY Cost of Living Amount (fixed)
30 percent of total program funding if identified as a small rural district (110 across state)
Includes voter approved override, hold harmless, excess hold harmless and cost of living mill (if any)

12. Calculate a Mill Voter approved override $500,000
Current Assessed Valuation $265,000,000
How many mills for the taxpayer?
500,000/265,000,000 *1000 = mills
Impact to homeowner with $300,000 house
$300,000 * = 23,880 assessed value
23,880 * mills = $45.00 per year