HB 912-FN-A-LOCAL – AS INTRODUCED
2007 SESSION
04/03
HOUSE BILL 912-FN-A-LOCAL
AN ACT establishing the New Hampshire homestead plan.
SPONSORS: Rep. Peterson, Hills 3; Rep. Leishman, Hills 6; Rep. C. Robertson, Rock 13; Rep. DeJoie, Merr 11
This bill:
I. Imposes an education property tax at $7.50 per $1,000 of taxable value.
II. Establishes a homestead exemption from the education property tax for the first $200,000 of assessed value of a homestead.
III. Establishes a new formula for the determination of adequate education grants to be funded by the education property tax and existing revenue sources in the education trust fund.
IV. Provides sustainability grants to municipalities in which the education property tax would increase by $3.00 or more per $1,000 of taxable value.
V. Provides supplemental grants to municipalities based on demonstrated need.
VI. Repeals the excess education property tax payment.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
07-0267
04/03
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Seven
AN ACT establishing the New Hampshire homestead plan.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Application of Receipts; Excess Education Tax Payments. Amend RSA 6:12, I(b)(65) to read as follows:
(65) Money received under RSA 77-A, RSA 77-E, RSA 78, RSA 78-A, RSA 78-B, RSA 83-F, [RSA 198:46,] and from the sweepstakes fund, which shall be credited to the education trust fund under RSA 198:39.
2 Reference Deleted; Cooperative Assessment Districts; Purpose. Amend RSA 21-J:14-h to read as follows:
21-J:14-h Purpose. The general court finds that the encouragement and support of the establishment of multi-jurisdictional assessing districts is in the state’s interest in order to ensure the accuracy and fairness of valuations of real property for the purposes of administration of [the statewide enhanced education tax,] county property taxes, school district property taxes, municipal property taxes, the distribution of various forms of state aid, and the equalization of property values among jurisdictions. The general court further recognizes that many municipalities do not have sufficient numbers of real estate parcels, sufficient varieties of real property, or sufficient levels of new development to make it practical or economical to engage full-time, trained, and certified assessing professionals. The general court further finds that the state has a vested interest in encouraging and supporting the establishment of cooperative assessing districts which can efficiently and economically provide full-time, trained, and certified assessing professionals to serve the municipalities which elect to create and join said districts.
3 Education Property Tax. RSA 76:3 is repealed and reenacted to read as follows:
76:3 Education Property Tax.
I. An annual education property tax at the uniform rate of $7.50 on each $1,000 of the value of taxable property is hereby imposed on all persons and property taxable pursuant to RSA 72 and RSA 73, except property subject to tax under RSA 82 and RSA 83-F.
II. Taxes due under this section shall be paid to the department of revenue administration. A municipality’s tax collector, or other authorized municipal official, may act as an agent of the department of revenue administration for the purpose of collecting and forwarding taxes due under this section. The commissioner of the department of revenue administration shall collect all taxes due and certify such amount to the state treasurer for deposit into the education trust fund established in RSA 198:39.
4 New Chapter; Homestead Exemption. Amend RSA by inserting after chapter 76 the following new chapter:
CHAPTER 76-A
EDUCATION PROPERTY TAX HOMESTEAD EXEMPTION
76-A:1 Definition. In this chapter, “homestead” or “homestead property” means the dwelling owned by a claimant, or in the case of a multi-unit dwelling, the portion of the dwelling, which is used as the claimant’s principal place of residence and the claimant’s domicile for purposes of RSA 654:1. “Homestead” shall not include land and buildings taxed under RSA 79-A, 79-B, or 79-C or land and buildings or the portion of land and buildings rented or used for commercial or industrial purposes. In this section, dwelling owner includes one or more joint tenants or tenants in common and a trustee of a grantor trust pursuant to sections 671-679 of the United States Internal Revenue Code.
76-A:2 Homestead Exemption.
I. The first $200,000 of equalized assessed value of the homestead of a qualifying taxpayer shall be exempt from the education property tax due under RSA 76:3.
II. A qualifying taxpayer is an individual who:
(a) On April 1 owns a homestead subject to the education property tax; and
(b) Files a claim certifying, under the pains and penalties of perjury, that such taxpayer qualifies under subparagraph (a) with the selectmen or assessing official on or before July 31 of the tax year for which the claim is made. Claims filed after July 31 each year shall not be considered timely for the current year, but shall be considered filed for the following tax year. The selectmen or local assessing official may waive the filing of a claim and list the homestead exemption for a taxpayer who has been granted a local property tax exemption under RSA 72:39-a and who is reasonably believed to currently qualify for that exemption.
III. Upon receipt of a claim for a homestead exemption under this section, the selectmen or assessing officials shall review the claim and shall grant or deny the claim in writing to the applicant and the department by September 1 following receipt of the claim. Failure of the selectmen or assessing officials to respond shall constitute acceptance of the claim. Accepted claims shall continue from year to year without necessity for refiling unless there is a change in ownership or use of the property. Accepted claims may at any time be revoked for any tax year or portion thereof following the occurrence of one or more of the following events:
(a) The claimant fails to file a return as required under this section within one year following the close of the tax year for which the exemption is claimed; or
(b) The claimant is no longer qualified for the local property tax exemption under RSA 72:39-a; or
(c) The claimant is no longer qualified under the definition of homestead in RSA 76-A:1 due to a change in ownership or use.
IV. Claims shall be made on forms prescribed by the commissioner and provided to each municipality.
V. The following shall apply to the determination of the amount of property value exempted relative to a homestead which is part of a single tax parcel upon which is located either other dwelling units not owned or occupied by the taxpayer or significant non residential use of the property:
(a) If the tax parcel includes property used for business or other nonresidential use, the exempt homestead amount shall include, in addition to the actual homestead, the lesser of 1,000 square feet of floor area of such nonresidential use property or $25,000 of equalized value, except that family owned and operated farms which are not owned by a business entity or held in the name of a non-natural person shall be eligible for the full homestead exemption on all property not assessed under RSA 79-A, 79-B, or 79-C.
(b) If the tax parcel includes other dwellings or dwelling units, the value of the homestead exemption relative to the claimed homestead shall be determined by the assessing official as follows:
(1) Divide the value of the tax parcel by the number of dwelling units; or
(2) If the square footage of each dwelling unit is known, multiply the value of the tax parcel by a fraction consisting of the square footage of the claimed homestead divided by the total square footage of all dwelling units in the parcel.
(c) In lieu of the method of determining the amount of homestead exemption in subparagraph (a) or (b), a taxpayer may present competent evidence of a greater proportion of exempt value to the assessing officials. In such instance the taxpayer bears the burden of proving the claimed exemption by the preponderance of the evidence.
(d) The procedure, or exclusion of value resulting from the procedure in subparagraph (b) shall be waived to the extent it pertains to a single additional dwelling unit on the homestead property that is occupied by a direct lineal ascendant or descendant, sibling, aunt, uncle, niece, or nephew, by blood, marriage, or law, of the qualifying taxpayer who does not pay rent, other than for utilities, as annually certified by the claimant.
VI. If a taxpayer purchases a homestead after April 1 for which no homestead exemption was claimed by the previous owner, the taxpayer may apply for a refund of education property tax previously paid on the homestead, but for which no application was made. The amount of such refund shall be apportioned according to the number of days in the tax year the taxpayer owned and occupied the homestead. Claims by taxpayers purchasing homestead property shall be filed with the inventory of property transfer required to be filed pursuant to RSA 74:18. The selectmen or assessing officials shall, within 30 days of filing of the refund claim, accept or deny it and, if accepted, notify the department. The department shall certify the amount of such refund to the state treasurer for payment from the education trust fund established in RSA 198:39.
5 School Money; Adequate Education. RSA 198:38 is repealed and reenacted to read as follows:
198:38 Definitions. In this subdivision:
I. “Adequate education cost” means the amount calculated for a municipality in accordance with this subdivision.
II. “Average annual rate of inflation” means average annual percentage rate of inflation based on the northeast region consumer price index for all urban consumers as published by the Bureau of Labor Statistics, United States Department of Labor, for the 4 calendar years ending 18 months before the beginning of the fiscal year for which aid is to be determined.
III. “Average daily membership in attendance” means average daily membership in attendance, as defined in RSA 189:1-d, III, as of September 30 of the second school year preceding the year in which the calculation is made.
IV. “Average daily membership in residence” means the average daily membership in residence, as defined in RSA 189:1-d, IV, as of September 30 of the second school year preceding the year in which the calculation is made, provided that no kindergarten pupil shall count as more than 1/2 day attendance per calendar day.
V. “Average per pupil adequacy cost” means the amount determined in RSA 198:40-a.
VI. “Commissioner” means the commissioner of the department of education.
VII. “Department” means the department of education.
VIII. “Determination year” means the fiscal year that was 3 years prior to the first fiscal year of a biennium for which a municipality’s education equity index is to be determined pursuant to RSA 198:40-c.
IX. “Elementary school” means a school with any of the grades kindergarten through 8.
X. “Equalized valuation” means the equalized valuation of property in a jurisdiction as determined by the department of revenue administration, including property subject to taxation under RSA 82 and RSA 83-F.
XI. “Equalized valuation per pupil” means, for any municipality, the equalized valuation of the municipality for the determination year, divided by the municipality’s average daily membership in residence for the determination year.
XII. “Median income” means, for any jurisdiction for a determination year, the most recently available median household income data from the United States decennial census or such current official estimates of such data from the department of revenue administration as may be available for such determination year, provided that, in the case of any unincorporated towns or unorganized places in Coos county, the median income for Coos county shall be the median income for each such unincorporated town or unorganized place, and, provided further that, Penacook shall be assigned the median income value determined for Concord.
XIII. “Municipality” means a city, town, or unincorporated place.
XIV. “School district” means school district as defined in RSA 194:1 or RSA 195:1.
XV. “Statewide average equalized valuation per pupil” means the total statewide equalized valuation of all municipalities that had resident pupils during the determination year, divided by the total statewide average daily membership in residence for the determination year.
6 Education Trust Fund. Amend RSA 198:39, I to read as follows:
I. The state treasurer shall establish an education trust fund in the treasury. Moneys in such fund shall not be used for any purpose other than to distribute adequate education grants to municipalities’ school districts and to approved charter schools pursuant to RSA 198:42, and to provide low and moderate income homeowners property tax relief under RSA 198:56-198:61. The state treasurer shall deposit into this fund immediately upon receipt:
(a) Funds certified to the state treasurer by the commissioner of revenue administration pursuant to RSA 76:3, relative to the education property tax.
[(a)] (b) Funds certified to the state treasurer by the commissioner of revenue administration pursuant to RSA 77-A:20-a, relative to business profits taxes.
[(b)] (c) Funds certified to the state treasurer by the commissioner of revenue administration pursuant to RSA 77-E:14, relative to business enterprise tax.
[(c)] (d) Funds collected and paid over to the state treasurer by the commissioner of revenue administration pursuant to RSA 78-A:26, III relative to the tax on motor vehicle rentals.
[(d)] (e) Funds collected and paid over to the state treasurer by the department of revenue administration pursuant to RSA 78:32, relative to tobacco taxes.
[(e)] (f) Funds certified to the state treasurer by the commissioner of revenue administration pursuant to RSA 78-B:13, relative to real estate transfer taxes.
[(f)] (g) Funds collected and paid over to the state treasurer by the department of revenue administration pursuant to RSA 83-F:7, I, relative to the utility property tax.
[(g) The full amount of excess statewide enhanced education tax payments from the department of revenue administration pursuant to RSA 198:46.]
(h) All moneys due the fund in accordance with RSA 284:21-j, relative to sweepstakes and the lottery.
(i) Tobacco settlement funds in the amount of $40,000,000 annually.
(j) The school portion of any revenue sharing funds distributed pursuant to RSA 31-A:4 which were apportioned to school districts in the property tax rate calculations in 1998.
(k) Any other moneys appropriated from the general fund.
7 School Money; Average Per Pupil Adequacy Cost; Sustainability and Supplemental Grants. RSA 198:40-a, RSA 198:40-b, and RSA 198:40-c are repealed and reenacted to read as follows:
198:40-a Average Per Pupil Adequacy Cost.
I.(a) Beginning July 1, 2007, and every biennium thereafter, the department shall calculate the average per pupil adequacy cost for each school district that operates an elementary school by subtracting from the total expenditures at the elementary school level, tuition to other school districts or approved educational programs, capital costs and debt service on such costs, special education costs, food service costs, transportation costs, adult/continuing education and community services costs, and federal revenues not otherwise deducted. For each school district, this amount shall be divided by the average daily membership in attendance at the elementary school level to attain the average per pupil adequacy cost.
(b) The department shall identify those school districts where 40 to 60 percent of the elementary pupils enrolled in the grades tested, on the day testing began, achieved a scaled score, in the New England common assessment program administered pursuant to RSA 193-C, in all areas tested, equivalent to performance at the proficient level or above. From these school districts, the department shall then select those school districts that have the lowest cost per pupil as calculated pursuant to subparagraph I(a) and which represent, as nearly as possible, 50 percent of the average daily membership in attendance at the elementary level of the school districts identified.
(c) The department shall multiply the average per pupil adequacy cost of a school district identified in subparagraph I(b) by the average daily membership in attendance at the selected school district, and add the results for all districts selected. The sum shall be divided by the average daily membership in attendance at the elementary school level in all of the selected school districts and the result shall be the preliminary statewide average per pupil adequacy cost.
(d) The department shall add to the preliminary statewide average per pupil adequacy cost $450. This amount shall be the statewide average per pupil adequacy cost. The $450 portion of the statewide average per pupil adequacy cost shall be used to develop programs to ensure pupils are meeting the criteria set forth in RSA 193-E:2 and for dropout prevention programs. The efficacy of such programs shall be subject to review by the department of education.
II. Beginning July 1, 2007 and every fiscal year thereafter, the statewide cost of an adequate education shall be determined by multiplying the statewide average per pupil adequacy cost determined in this section by the average daily membership in residence for all school districts in the state.
III. Beginning July 1, 2008 and every even-numbered fiscal year thereafter, the statewide average per pupil adequacy cost determined in subparagraph I(d) shall be adjusted by the average annual rate of inflation.
198:40-b Sustainability Grants.
I. Each tax year, the commissioner of the department of revenue administration shall create a list of all municipalities in which the state education tax rate for the tax year, as calculated prior to the application of the homestead exemption established in RSA 76-A to all qualified homeowners in such municipality, will increase from the previous tax year by $3.00 or more per $1,000 of the value of taxable property. The commissioner of the department of revenue administration shall furnish such list to the commissioner of the department of education. No later than September 1 annually, the commissioner of the department of education shall disburse a grant to each eligible municipality on the list in an amount sufficient to ensure that the municipality’s state education tax rate does not increase from the previous tax year by more than $3.00 per $1,000 of the value of taxable property.
II. Sustainability grants issued under this section shall be a charge against the education trust fund established in RSA 198:39, and shall be paid to school districts pursuant to RSA 198:41.
198:40-c Targeted Supplemental Grants. The department shall make targeted supplemental grants to municipalities as follows:
I. For the biennium beginning July 1, 2007, and each biennium thereafter, the department shall determine an education equity index for each municipality that had any resident pupils during the applicable determination year as follows:
(a) Each municipality’s education equity index shall be computed by dividing one by the sum of:
(1) 0.4 times the statewide average equalized valuation per pupil divided by the equalized valuation per pupil for the municipality;
(2) 0.2 times the statewide median income divided by the municipality’s median income;
(3) 0.095 times the percentage of the municipality’s pupils in grades one through 12 eligible to receive a free or reduced price meal during the determination year as reported to the department divided by the statewide percentage of pupils in grades one through 12 eligible to receive a free or reduced price meal during the determination year as reported to the department;
(4) 0.005 times the percentage of the municipality’s pupils in kindergarten through grade 8 identified as having limited English proficiency and receiving at least 5 hours per week of special instruction in English during the determination year as reported to the department divided by the statewide percentage of pupils in grades kindergarten through 8 identified as having limited English proficiency and receiving at least 5 hours per week of special instruction in English during the determination year;
(5) 0.15 times the statewide average test score on the New England common assessment program divided by the municipality’s average test score administered pursuant to 193-C;
(6) 0.075 times the statewide graduation rate for the determination year as reported by the department divided by the municipality’s graduation rate for the determination year as reported to the department, where each municipality’s graduation rate shall be equal to the graduation rate for the particular high school attended by the municipality’s resident pupils that attend high school; and
(7) 0.075 times the statewide percentage of high school graduates that entered directly into postsecondary education in the determination year as reported by the department divided by the percentage of the municipality’s high school graduates that entered directly into postsecondary education in the determination year as reported to the department, where each municipality’s percentage of high school graduates that entered directly into postsecondary education in the determination year rate shall be equal to the percentage of such high school graduates for the particular high school attended by the municipality’s resident pupils that attend high school.
(b) For the biennium beginning July 1, 2007, the department shall determine the education equity index for each municipality within 15 days after the effective date of this section.
(c) For the biennium beginning July 1, 2009, and every biennium thereafter, the department shall determine the education equity index for each municipality not later than October 1 in the calendar year preceding the beginning of the biennium for which the education equity index is calculated.
II. In determining the education equity index for any municipality that sends pupils to more than one school or school district, the department shall consider only data from schools or school districts within this state attended by 5 percent or more of the municipality’s resident pupils, and the department shall determine each value necessary to calculate the education equity index for such municipality by weighting the corresponding values for each school or school district to which the municipality sends pupils by the number of resident pupils from the municipality that attend such school or school district. If a municipality sends all of its resident pupils that are relevant to the determination of any value necessary to calculate the education equity index for such municipality to one or more schools not operated by any school district, then the municipality shall be assigned the statewide value for such value.
III. For the fiscal year beginning July 1, 2007, and every fiscal year thereafter, the department shall determine the amount of the targeted supplemental grant under this section, if any, for a municipality, except for municipalities where all school districts therein provide education to all of their pupils by paying tuition to other institutions, as follows:
(a) For each municipality with an education equity index for the applicable fiscal year which is less than 1.2, the department shall determine a number of education equity units equal to the number of resident pupils in the municipality during the applicable determination year multiplied by the excess of 1.2 over the municipality’s education equity index for such biennium. Each other municipality shall be assigned zero education equity units for such biennium.
(b) Each municipality shall receive a targeted supplemental grant for such fiscal year equal to the total amount of supplemental grants for the fiscal year multiplied by a fraction, the numerator of which is the number of education equity units determined for such municipality for the applicable biennium, and the denominator of which is the total number of education equity units determined for all municipalities for such biennium.
(c) For the fiscal year beginning July 1, 2007, and for each fiscal year thereafter, any unexpended funds remaining in the education trust fund, after disbursement of grants under RSA 198:41, I-II, shall be disbursed to municipalities as targeted supplemental grants pursuant to this section. If in any fiscal year, the amount available for targeted supplemental grants is insufficient to fund all such grants due under this section, the amount shall be prorated proportionally among all municipalities entitled to a grant.
IV. For municipalities where all school districts therein provide education to all of their pupils by paying tuition to other institutions, the amount of the targeted supplemental grant for each such municipality shall be the lesser of the following:
(a) The amount calculated in accordance with paragraph III of this section; or
(b) The total amount paid for education expense as determined by the department.
V. Targeted supplemental grants under this section shall be a charge against the education trust fund established in RSA 198:39.
8 School Money; Determination of Education Grants. RSA 198:41 is repealed and reenacted to read as follows:
198:41 Determination of Adequate Education Grants. For each school district, the department of education shall disburse grants in the following order:
I. Beginning July 1, 2007 and every fiscal year thereafter, the adequacy grant amount determined in RSA 198:40-a shall be disbursed to the superintendent of the school district.
II. Beginning July 1, 2007, and ever fiscal year thereafter, after disbursement of adequacy grants under RSA 198:40-a, and other payments required in RSA 198:39, I, the amount determined for sustainability grants shall be disbursed to municipalities pursuant to RSA 198:40-b.
III. Beginning July 1, 2007, and every fiscal year thereafter, from any unexpended funds remaining in the education trust fund after disbursement of adequacy grants and sustainability grants under RSA 198:40-a and RSA 198:40-b, respectively, the amount determined for targeted supplemental grants shall be disbursed to municipalities pursuant to RSA 198:40-c.
IV. The department of education shall notify school districts of the estimated amounts of grants by the November 15 which precedes the fiscal year for which aid is determined.
9 Cooperative School Districts; State Aid. Amend RSA 195:15 to read as follows:
195:15 State Aid. The state aid to which a cooperative elementary and/or secondary district shall be entitled shall be the total of those shares of the aid to which the pupils attending the cooperative district would have entitled the pre-existing districts, had they remained in the pre-existing districts. [For the purposes of crediting the cooperative district’s adequate education cost to the pre-existing districts, each such pre-existing district shall have its adequate education cost under RSA 198:38, VII credited against its share of the cooperative school district budget. However, cooperative school districts formed by 2 or more pre-existing districts whose boundaries approximate those of a single township in which they are located shall be treated as a single school district for the purposes of this section.]
10 Excess Education Property Tax Payment; Subdivision Heading Amended. Amend the subdivision heading preceding RSA 198:46 to read as follows:
[Excess Education Property Tax Payment] Miscellaneous Provisions
11 References Changes. Amend the following RSA provisions by replacing “equitable” with “adequate”: RSA 21-N:1, II(c); RSA 193:1, I(c); RSA 193-E:1, II; RSA 193-E:2; the section heading of RSA 193-E:3; RSA 194-B:3, II(i); RSA 195:14, I(c); RSA 195:14, I(d)(2)-(3); RSA 195:14-a, I; the section heading of RSA 198:42; RSA 198:42, I-II; RSA 198:43; RSA 198:48; RSA 198:48-a, VII-VIII.
12 Reference Changes. Amend the following RSA provisions by replacing “enhanced education” with “education”: RSA 76:8, I; RSA 76:8, III; RSA 76:9; RSA 83-F:9; RSA 198:57, III(a); and RSA 198:57, IV(c).
13 Repeal. The following are repealed:
I. RSA 198:46, relative to excess education property tax payment.
II. RSA 198:47, relative to forms for excess education property tax payment.
III. 2005, 257:8, as amended by 2006, 6:2, relative to targeted aid.
IV. 2005, 257:23, I relative to the prospective effective date for targeted aid.
14 Effective Date. This act shall take effect July 1, 2007.
LBAO
07-0267
Revised 03/05/07
HB 912 FISCAL NOTE
AN ACT establishing the New Hampshire homestead plan.
FISCAL IMPACT:
The Department of Education has determined this bill will increase state education trust fund expenditures and local revenue by an indeterminable amount in FY 2008 and each fiscal year thereafter. The Department of Revenue Administration has determined this bill will increase state general fund expenditures and state restricted education trust fund revenue by an indeterminable amount in FY 2008 and each fiscal year thereafter. There will be no fiscal impact on county revenue or county and local expenditures.
METHODOLOGY:
The Department of Education states it is unable to determine the cost of sustainability grants and targeted supplemental grants under this bill.
The Department estimated the cost of an adequate education under the proposed RSA 198:40-a by first estimating the statewide average per pupil adequacy cost for each fiscal year. The Department determined the FY 2008 preliminary statewide average per pupil adequacy cost, $5,602.60, using FY 2005 financial data and FY 2006 New England Common Assessment Program data, and added to that value $450 per the proposed RSA 198:40-a, I(d), resulting in a FY 2008 statewide average per pupil adequacy cost of $6,052.60. The Department estimated the FY 2009 statewide average per pupil adequacy cost, $6,270.49, by increasing the FY 2008 cost by 3.6% for inflation. The Department estimated the FY 2010 statewide average per pupil adequacy cost, $6,836.96, by increasing the FY 2008 preliminary statewide average per pupil adequacy cost by 14% for expected increases in school district spending, then added $450 [($5,602.60 x 114%) + $450]. The Department estimated the FY 2011 statewide average per pupil adequacy cost, $7,083.09, by increasing the FY 2010 cost by 3.6% for inflation. The Department then multiplied the statewide average per pupil adequacy cost for each fiscal year by total average daily membership in residence to determine the cost of an adequate education under this bill.
FY 2008
$6,052.60 x 198,968.9 = $1,204,279,164
FY 2009
$6,270.49 x 197,599.1 = $1,239,043,181
FY 2010
$6,836.96 x 195,820.7 = $1,338,818,293
FY 2011
$7,083.09 x 194,450.0 = $1,377,306,851
The Department of Revenue Administration states this bill could be administered by the Department with significant additional cost. The Department estimates $2,000,000 of additional general funds per year would be required to administer this bill.
The Department estimated state education property tax revenue under this bill in FY 2008 as follows. Total 2005 equalized assessed valuation not including railroad and utilities is $162,083,218,036. Gross revenue at the tax rate of $7.50 per 1,000 would be $1,215,624,135 [($162,083,218,036 / 1,000) x $7.5]. According to 2000 U.S. Census data, there are 330,783 owner-occupied housing units eligible for exemptions of up to $200,000 of assessed value. The Department states 270,699 homes would be fully exempt from the state property tax because their assessed value is below $200,000, with an average assessed value of $112,608. The total property tax exemption from these homes is estimated to be $228,621,547 [(($112,608 x 270,699) / 1,000) x $7.5]. The Department states the remaining 60,084 owner-occupied homes would each be exempt on $200,000 of assessed value, for a total property tax exemption of $90,126,000 [($200,000 x 60,084) / 1,000) x $7.5]. Therefore, total property tax revenue under this bill in FY 2008 is estimated to be $896,876,588 ($1,215,624,135 - $228,621,547 - $90,126,000), an increase of $533,876,588 over current law ($896,876,588 - $363,000,000).