Tax Rate Setting

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.

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

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)

---

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) (PDF)
• 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)
• Fiscal Year 2022 Guidelines for Annual Assessment and Allocation of Tax Levy (IGR2021-9) (PDF)
• Fiscal Year 2022 Guidelines for Determining the Annual Levy Limit Increase for New Growth (PDF)
• 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)
• Webinar: Yarmouth Tax Rate Recap Process Webinar Recording (Video)
• Webinar: Yarmouth Tax Rate Recap Process Webinar Slides (PDF)

Other DLS guidance

• Guidelines: Municipal Finance Provisions of the Community Preservation Act (CPA) (IGR2019-14) (PDF)
• Property Value Recertification and Tax Rate Target Dates (BUL2019-2) (PDF)
• The Importance of Collections Enforcement (PDF)

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 (XLS)
• Tax Impact Calculator (Databank report)