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Question 1:
- Is the projected increase in the “preliminary 2010-2011” budget based on a tax increase or on “normal” increases in costs?
The budget is built each year based on need. This year there are no new initiatives or programs. The economy has affected the school district, the same as everyone else.
Question 2:
- Have the taxes been above inflation?
Since the inception of Act 1, tax increases have been below the index of inflation. Act 1 sets a “cap” of the percentage that millage may increase called the index. The Pennsylvania Department of Education (PDE) set index is based on the Statewide Average Weekly Wage (SAWW) and the national Employment Cost Index (ECI) for education. Prior to Act 1, tax increases were levied to pay for building projects and staff due to increased enrollment.
Question 3:
- What is a mill?
A mill is 1/10 of $.01 or $.001 (one thousandth). A mill levy is the number of dollars a taxpayer must pay for every $1,000 of assessed value.
Question 4:
- Does a mill raise the same amount of money for every school district?
No. Every district has a unique tax base (mix of residential, commercial, industrial, tax-exempt, etc) and the effect of a mill levy is therefore different. It is not appropriate to compare the number of mills levied in one district with the number of mills levied in another district because one mill is worth a different amount in each district. With those factors considered, the current value of a mill in QCSD is $394,046.
Question 5:
- How are assessments prepared?
Pennsylvania has a constitutional requirement for uniformity of taxation. Counties are the governmental unit principally responsible for assessments. The primary function of the Bucks County Board of Assessments, which is composed of three members, is to determine the CURRENT MARKET VALUE of all properties in the County and calculate the appropriate assessment. Properties in Bucks County have not been assessed in many years. They typically meet the uniformity requirement by adopting a "base year" market value.
Question 6:
- How do the millage rate and the assessment come together in the form of a tax bill?
You can easily calculate your school tax bill by multiplying the millage rate – proposed at 134.7 mills – by the assessed value of your home. So a property assessed at $26,300 would be looking at an annual school tax bill of $3,543, which is the “average” assessment in Quakertown Community School District. That translates into a $137 dollar increase from 2009-10.
Question 7:
- Can you tell us how the “average” taxpayer increase is calculated? Can it be broken out and posted to the website by the average for each township/borough in the district?
We look at all residential properties with information provided by the County Board of Assessment. The total residential assessment is divided by the total number of residential properties in the district to equal the average assessment. Of course, the higher the assessed value of your property, the more taxes you will pay regardless of which municipality in which you reside. The district has no control over assessed values and does not have the authority to make individual adjustments.
Question 8:
- Given the other things going on in the economy, couldn’t the board simply choose to not raise taxes at all this year?
Just like the basic expenses in your household budget are going up, so too are the district’s. Freezing the district’s expenditures could require measures that would directly and negatively impact our students, which we would be hesitant to do. However, given the current local and national economic crisis, the District administration is committed to further reducing the 2010-11 Budget and needed tax increase, while still completing its obligation to budget wisely and to preserve core educational programs. Again this year, extensive expense audits are currently being performed.
Question 9:
- Can you depend on the other sources of local revenues instead of my property taxes?
In addition to private property tax, local revenues are generated through earned income tax, real estate transfer tax, real estate interim tax, per capita taxes, investment earnings, and facility rentals. Earned income tax collections, real estate transfer taxes, real estate interim taxes and investment earnings are directly related to a robust economy and cannot be depended on to produce the needed consistent revenue.
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