Saturday, June 4, 2011

Early Warning for Equalized Valuations?

An article on this week states that,
"Home prices have hit another new low, down to levels not reached since 2002."

How does that play into the magic "Equalized Value" (value of all property in a taxing entity) portion of the tax levy equation?
Remember:  Tax Levy ÷ Equalized Value x 1000 = Mill Rate

Many taxing entities, including the Sun Prairie School District, are using 0% as their projected "growth" in the equalized valuation.  Last year, Sun Prairie itself was negative by almost 5%.  Have we really maintained status quo (0%) if home values have dropped even further?  Hmm?

Remember that with no change in the tax levy, a 1% drop in the "projected" Equalized Valuation translates to a 1% INCREASE in the mill rate.

Gee...those raises in DeForest might become even harder to bear on the peoples' pockets.