First page Back Continue Last page Overview Text

With information from the certified tax roll, the effective rate is then calculated. The effective rate, sometimes referred to as the revenue neutral rate, is the rate that would levy the same amount of taxes on properties that are more than one year old. Note: the effective rate does not include the value of new properties, they are subtracted, thus new properties will provide an increase in overall revenue. The effective rate is only revenue neutral when there is absolutely no growth. None. Zero. Nada. Why is that important? All taxing entities may adopt the effective rate with no notice in the newspaper and no public hearing. Adopting the effective rate could happen at any regular meeting. The only public notification required is the normal 72-hour advance posting of an agenda prior to the meeting. That's it, folks! Every taxing entity could adopt the effective rate AND STILL INCREASE their budgets by the additional tax revenue from new properties entering the tax rolls. So, why do taxing entities go through all of the trouble of raising taxes more than the effective rate? Ignorance, greed, incompetence, voter apathy -- you decide.