Tax Rate Setting

Requires teamwork and the cooperation of a number of municipal officers.

A municipality’s tax rate is the amount of its annual property tax levy stated in terms of a unit of its tax base. To set a tax rate, a municipality must submit a “Tax Rate Recapitulation Sheet”, also called “the recap”, to DLS’ Bureau of Accounts (BOA). The recap displays a municipality's entire budget plan for the fiscal year. It summarizes all anticipated expenditures. The resources below can assist your community’s financial management team in the timely completion of the annual tax rate process.

Who is involved with this process

• Assessors as Municipal Finance Officers (Video 101) 
• Assessors as Public Officials (Video 101) 
• Role and Responsibilities of the Collector (PDF)
• State Oversight of Local Taxation: DLS's Role (Video 101)
• The Financial Management Team (PDF)
• The Role and Responsibilities of an Accountant/Auditor (PDF)
• The Role and Responsibilities of an Assessor (PDF)
• The Role of a Finance Director (PDF)

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Proposition 2 1/2

• A Detailed Look At Proposition 2 ½ for assessors Handbook (PDF)
• Calculating the Levy Limit (Video)
• How Can a Community Exceed Its Levy Limit or Ceiling? (Video)
• Levy Limits: A Primer on Proposition 2 ½ (PDF)
• New Growth in the Tax Base Under Proposition 2 1/2 (Video)
• Proposition 2 ½ Ballot Questions – Requirement and Procedures (PDF)
• What is a Levy Ceiling? (Video)
• What is a Levy Limit? (Video)
• What is a Proposition 2 1/2 Exclusion? (Video)
• What is a Proposition 2 1/2 Override or Underride? (Video)
• What is Excess Levy Capacity? (Video)
• What is New Growth? (Video)
• What is New Growth? (Video)
• What is Proposition 2 1/2? (Video)
• What's the Difference Between an Override and an Exclusion? (Video)

Property tax classification

• Mining DLS Property Tax Data for Classification Hearings Webinar Recording (Video)
• Property Tax Classification: Classifying Property for Tax Purposes Module (Video 101)
• Property Tax Classification: Classifying Property for Tax Purposes Handbook (PDF)
• Property Type Classification and Sales Verification Codes  (PDF)

Overlay

• Guidelines Related to Overlay and Overlay Surplus (IGR2017-23)
• The Overlay Reserve Account: Allowances for Abatements and Exemptions (Video)

Tax rate recap

• A Detailed Look at Setting the Tax Rate Handbook (PDF)
• A Detailed Look at Setting the Tax Rate Module (Video) (101)
• Calculating Tax Rates by Completing the Tax Rate Recapitulation (Recap) Form (Video)
• Calculating the Levy Limit (Video)
• Completing the Tax Rate Recap Forms Presentation (PDF) 
• Completing the Tax Rate Recap Forms Webinar (Video)
• Instructional Video: Tax Rate Recap, Page 3 Support Form (Video) As of July 1st, 2022, the new Gateway tax rate recap page 3 support form must be completed and submitted as part of the Bureau of Accounts tax rate recap approval process. This video provides detailed instruction on how to complete the four tabs associated with the new page 3 support form. Prior to starting the page 3 support form, please input the actual and estimated local receipt figures on page 3 of the tax rate recap. Once these figures have been entered and saved, the page 3 support form will automatically populate based on the numbers entered in the tax rate.
• IGR 2024-14 Fiscal Year 2025 Guidelines for Annual Assessment and Allocation Of Tax Levy
• IGR 2024-15 Fiscal Year 2024 Guidelines for Determining Annual Levy Limit Increase for Tax Base Growth
• Revenue and Appropriation Deficits (PDF)
• Revenue Deficits: An Overview (PDF)
• Setting the Tax Rate: Overview (Video)
• Tips for Assessors: Using the New Growth Reporting Template (Video)
• Tips for Using the BOA Tax Rate Recap forms (PDF)
• Webinar: Yarmouth Tax Rate Recap Process Webinar Recording (Video)
• Webinar: Yarmouth Tax Rate Recap Process Webinar Slides (PDF)

Other DLS guidance

• IGR-2019-14 - Community Preservation Fund
• BUL 2019-2 Recertification and Tax Rate Target Dates

Tools

• Budget and Tax Rate Planning Tool (XLS)
• City/Town Appropriation Template (XLS)
• Impact of Proposition 2 1/2 Referendum on Property Tax Bill (Databank report)
• Residential Exemption Calculator (Databank report)
• Residential to CIP Shift Calculator
• Tax Impact Calculator (Databank report)