School System Funding, & School Property Tax Exemptions - - PowerPoint PPT Presentation
School System Funding, & School Property Tax Exemptions Informational Meeting Held at Chattahoochee Technical College 4/17/2018 1 Meeting Rules This is an informational meeting only. This topic can become emotional. Lets keep
Held at Chattahoochee Technical College 4/17/2018
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This is an “informational” meeting only. This topic can become
be respectful of those who may have differing views on the information presented.
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help me God. (O.C.G.A. § 45-3-1).
success of a local board of education, one is clearly essential; maintaining accreditation and the opportunity it affords.”
judgment and refuse to surrender his or her judgment to individuals or special interest groups.
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responsible for any exemptions. The governing authority of a county or municipality,… however, the school system is directly affected by any and all exemptions granted locally.
January.
disrespect to senior citizens!
disrespect to citizens of any area of our county!
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"The provision of an adequate public education for the citizens shall be a primary
college or postsecondary level shall be free and shall be provided for by taxation." (Georgia Constitution 8-1-1) “The board of education of each school system shall annually certify to its fiscal authority or authorities a school tax not greater than 20 mills per dollar for the support and maintenance of education. Said fiscal authority or authorities shall annually levy said tax upon the assessed value of all taxable property within the territory served by said school system, provided that the levy made by an area board of education, which levy shall not be greater than 20 mills per dollar, shall be in such amount and within such limits as may be prescribed by local law applicable thereto.” (Georgia Constitution 8-6-1)
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All federal funds are received through grant programs Some of which go directly to the local school system but most of which are sent to the State Department of Education and distributed pursuant to federal and state regulations and rules to local systems.
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purposes.
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Jan.17 – Feb. 18 Average $385K/ mos.
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shop in Pickens
Property)
13 All property is assessed at 40% of market value except timber which is at 100%
2017 67% of your property taxes went to Pickens County Schools.
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earnings are based on full-time equivalent (FTE) student counts in the various different instructional programs.
matter where he or she lived, had access to an education that received sufficient funding to provide a Quality Basic Education.
responsibility between the state and local communities……….. districts are required to levy the equivalent of at least 5 mils in property taxes as a basic local commitment. (LOCAL FAIR SHARE)
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Equalization Grants: Additional funds provided through Equalization Grants to assist the systems with the least taxable property per student. QBE earnings are intended to provide for an adequate education. Equalization is an attempt to address equity. The concept of equalization is related to the concept of the Local Fair Share. Because all counties are not created equal in terms of property tax wealth, they cannot raise the same amounts of money from local property taxes. All 180 school districts are ranked according to their property wealth per student.
COUNTY FTE 5 mil. “Local Fair Share”
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Fulton 95,248 $147,089,872
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Cobb 114,410 $136,707,956
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Rabun 2,176 $7,705,895
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Pickens 4,266 $6,589,226
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Fannin 2,943 $6,178,983
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Dawson 3,409 $5,855,311
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Gilmer 4,142 $5,355,358
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Union 2,692 $5,298,973
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Lumpkin 3,758 $4,774,615
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White 3,845 $4,004,557
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Towns 1,025 $3,597,939 16 FY 17 amounts 192 districts on the report FY 15 – 6,355,431 FY 16 – 6,529,210 FY 17 – 6,589,225
Personal Income Tax $11.5 Billion 45.8% Corporate Income Tax $1 Billion 4.2% Sales Tax $5.8 Billion 23.4%
Other Taxes and Fees $3.6 Billion 14.3% Motor Fuel Tax $1.8 Billion 7.2% Lottery Funds $1.1 Billion 4.5% Tobacco Settlement Fund $137 Million .5%
= $25 Billion
17 Georgia’s General Fund Revenue FY 2018
Student Finance Commission: Scholarships, Dual Enrollment
General funds for Education
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2 Primary Sources of Revenue:
Once Pickens County School’s earnings are calculated, 5 mils [approximately $6.5 million] are deducted from the formula by the state before sending the remainder to the Pickens County School District. Pickens County’s deducted $6.5 million is then distributed [Equalization described above] to counties with less property wealth per student.
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It has been stated that the state will simply make up any revenue shortage that Pickens County Schools may obtain. This statement is not true. Options for a shortfall of revenue from local Ad Valorem Tax include:
20 +4% +15% +3% +56% AGES 0-24 AGES 25-44 AGES 45-64 AGES 65+
Georgia Chamber of Commerce, Georgia 2030
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Graph above represents changes in the percentage of each displayed age group in Georgia by 2030:
If Georgia sees a 56% increase of citizens 65 and older, most likely retirees; where will they want to live??
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If Georgia sees a 56% increase of citizens 65 and older, most likely retirees, where will they want to live?? Did you say “mountains”?
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+5%
+46% AGES 0-24 AGES 25-44 AGES 45-64 AGES 65+
Georgia Chamber of Commerce, Georgia 2030
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displayed age group in Pickens by 2030.
coming years.
0-24 25-44 45-64 65+ TOTAL POP. AGE 2030
(-5%) 26.2% (+5%) 23.8% (-5%) 27.8% (+46%)29.4% (+9.2%)32,977
*2030 *21.78% *15.47% *29% *32.10% *31,945 *54.1 2016 27.6% 22.7% 29.3% 20.2% 29,992 44.8 2015 27.4% 23% 29.8% 19.5% 29,740 44.7 2014 28.0% 23.1% 29.9% 19% 29,550 44.4 2013 28.8% 23.7% 29.8% 17.8% 29,486 42.8 2012 29.4% 24.4% 29.4% 16.8% 29,445 41.7 2011 29.7% 25% 29.4% 15.9% 29,406 41.5 2010 30.1% 25.8% 29% 15.1% 29,155 40.8 27
Data source: factfinder.census.gov *Ga Chamber of Commerce Projected Changes from 2016 Data * Denotes % of change in age group based on trend from 2010 Red = declining population age group Green = increasing population age group
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Population Trends per Age Group 2010-2030
Increases from 15% to 32%
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2016 2030 Percent Population Age 65 Or Older
Georgia Chamber of Commerce, Georgia 2030
Greene, Quitman, Rabun, Towns, Union
Why this matters:
largest number of senior citizens we've ever seen.
senior property tax exemptions.
who may not be driving 10-15 years from now.
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2000 76.8 2015 78.8
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Life Expectancy in Years
As life expectancy increases, the “footprint” of any school tax exemptions will have longer lasting impacts.
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18-44 45-64 +65 Healthcare in past 12 months 92.1% 76.7% 86.3% 94.5% Prescription Drugs in Past 30 days 21.5% 36.5% 69.6% 90.8% Hospitalization in Past Year 5.8% 7.7% 15.2%
33 Healthcare + 16% Construction +12% Professional, Scientific, Tech +12% Wholesale Trade +6%
10-20% Total Employment 2017
2025 GA. SHORTAGE
1300 PHYSICIANS 6700 NURSES If we don't address our healthcare crisis, we're going to have major economic impact to
a huge need for services that can't be met. Georgia Chamber of Commerce, Georgia 2030
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industry will have to find a way to provide services to meet the higher needs
prepare more students for the healthcare field.
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+5%
+46% AGES 0-24 AGES 25-44 AGES 45-64 AGES 65+
Georgia Chamber of Commerce, Georgia 2030
26% of Pop. 30% of Pop. 29% of individuals 25-64 not working
36 Age Groups Who Will Pay Taxes By 2030
*Very small percentage paying taxes
*Pays taxes
*Pays taxes
*Increasing percentage of population *Additional tax exemptions will decrease
the number of this age group paying taxes
29% of these age groups NOT working
letter from Social Security as one of the letters). We need copies of the letters.
$25,000 for everyone living on the property.
etc.)
$25,000 gross income.
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cannot exceed $25,000 for everyone living on the property.
$25,000 gross income.
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exemptions available for those who meet the exemption qualifications
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District ad valorem taxes for educational purposes (approved for 4/21/97) from $25,000 gross income, to $40,000 net income, provisionally for five (5) years, for residents of that school district who are disabled or who are 65 years of age
change income requirements from all members of the family residing within the household to income of homeowner and spouse who reside in and occupy the homestead ; to provide for annual cost of living adjustments;
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42 Gross Income Net Income $25,000 $18,087.50 $38,752 $28,037.58 $41,465.10 $30,000 $55,286.80 $40,000 $51,143.54 $37,002.35 $68,191.38 $49,336.46 Standard Deductions Taxpayer
501 502 503 504 505 506 $78,008 $46,107 $50,043 $41,351 $58,587 $48,210 2015 AVERAGE GROSS HOUSEHOLD INCOME 502 -506 $48,859 2015 AVERAGE GROSS HOUSEHOLD INCOME 501 -506 $54,123 MEDIAN AGE 60.1 41 38.4 38.3 38.6 39.3
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Seniors for Change proposes current $25k gross income change to $40k net
Pickens County
45 Example of a qualified citizen’s income if Seniors for Change Proposal (slide 40) was passed Income from job $40K net approx. $55,000 Income from Retirement Plan + $65,000 Social Security Income (Pickens average) + $20,137 = $140,137
Yearly income, and exempt from Pickens County School tax
#1-Forsyth: $20,553 #5-Pickens: $20,137 #6-Dawson: $20,132
46 SmartAsset.com
District ad valorem taxes for educational purposes (approved for 4/21/97) from $25,000 gross income, to $40,000 net income, provisionally for five (5) years, for residents of that school district who are disabled or who are 65 years of age
change income requirements from all members of the family residing within the household to income of homeowner and spouse who reside in and occupy the homestead ; to provide for annual cost of living adjustments;
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48 After 5 years, impacts are assessed
District ad valorem taxes for educational purposes (approved for 4/21/97) from $25,000 gross income, to $40,000 net income, provisionally for five (5) years, for residents of that school district who are disabled or who are 65 years of age
change income requirements from all members of the family residing within the household to income of homeowner and spouse who reside in and occupy the homestead ; to provide for annual cost of living adjustments;
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District ad valorem taxes for educational purposes (approved for 4/21/97) from $25,000 gross income, to $40,000 net income, provisionally for five (5) years, for residents of that school district who are disabled or who are 65 years of age
change income requirements from all members of the family residing within the household to income of homeowner and spouse who reside in and occupy the homestead ; to provide for annual cost of living adjustments;
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Gross Income on your federal tax return should be subtracted from your income on your Georgia tax return. That means none of your Social Security income will be subject to tax.
accounts and pensions for anyone over the age of 64. For anyone age 62 to 64, the exclusion is $35,000 per person
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SmartAsset.com
52 State Funds Local Funds Two Primary Sources of Funding for Pickens County Schools
Social Security: exempt from State taxes Retirements and Pensions: $65k exemption per person from State taxes Anyone receiving Social Security, Retirement, or Pensions are already receiving exemptions from the state source of funding (state income taxes) for Pickens County Schools and if age 62+, gross income does not exceed $25k, qualify for the current exemption.
Any local exemptions will exempt qualified senior citizens from local funding as well
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48-7-26 Personal Exemption 48-7-27 Retirement Income 48-7-27 Exclusion of Federally Taxable Social Security Benefits
Separately
from Income for each Dependent Claimed on Tax Return 65+ May Exclude a maximum
include a Maximum of $4,000
Social Security Benefits are Excluded from State Taxable Income.
Cost: $1,155,000,000 Cost: $189,000,000 39
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The Senior Citizen Retirement Income Exemption is the # 1 cost to Georgia’s revenue in regards to exemptions. Cost: $1.1 Billion annually
District ad valorem taxes for educational purposes (approved for 4/21/97) from $25,000 gross income, to $40,000 net income, provisionally for five (5) years, for residents of that school district who are disabled or who are 65 years of age
change income requirements from all members of the family residing within the household to income of homeowner and spouse who reside in and occupy the homestead ; to provide for annual cost of living adjustments;
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Will this provision provide a loophole in which many people could reside in a household and not be responsible for paying taxes?
District ad valorem taxes for educational purposes (approved for 4/21/97) from $25,000 gross income, to $40,000 net income, provisionally for five (5) years, for residents of that school district who are disabled or who are 65 years of age
change income requirements from all members of the family residing within the household to income of homeowner and spouse who reside in and occupy the homestead ; to provide for annual cost of living adjustments;
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COLA Cost of Living Adjustments
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1997 2018 2020 2030 $25,000 $38,752.69 $40,413.22 $49,846.14 $30,000 $37,002.35 $40,000 $49,336.46
Social Security Administration Website
2.12% average annual increase -21 years
59 Gross Income Net Income $25,000 $18,087.50 $38,752 $28,037.58 $49,846.14 $36,063.68 $41,465.10 $30,000 $51,143.54 $37,002.35 $55,286.80 $40,000 $68,191.38 $49,336.46 Standard Deductions Taxpayer
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Cost of Living Adjustments
If cost of living adjustments were put in place in 1997 on the current $25k gross income senior tax exemption, that number would be $38,752 today based on an average 2.12% increase per year. If the proposal of $40k net ($55,286 gross) were to be in place in 2020 with an average cost of living adjustment, by 2030 that number would be $49,336 net ($68,191 gross).
District ad valorem taxes for educational purposes in the amount
residents of that school district who are disabled or who are 65 years of age or older; to provide for definitions, to specify the terms and conditions of the exemptions and the procedures relating thereto, to provide for annual adjustments;
61 This number is 40% of the Fair Market Value FMV $383,500.
District ad valorem taxes for educational purposes in the amount
residents of that school district who are disabled or who are 65 years of age or older; to provide for definitions, to specify the terms and conditions of the exemptions and the procedures relating thereto, to provide for annual adjustments;
62 This number is 40% of the Fair Market Value FMV $250,000.
63 Location Minimum Maximum Average Median Big Canoe (22 sold) $177,000 $640,000 $353,545 $338,500 Bent Tree (15 sold) $117,900 $395,000 $213,507 $208,800 Other (62 sold) $39,500 $441,000 $202,932 $195,000 FMLS (First Multiple Listing Service, Inc.) .) Report
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Compare proposals to the averages of Pickens County home sales
Personal Income Tax $11.5 Billion 45.8% Corporate Income Tax $1 Billion 4.2% Sales Tax $5.8 Billion 23.4%
Other Taxes and Fees $3.6 Billion 14.3% Motor Fuel Tax $1.8 Billion 7.2% Lottery Funds $1.1 Billion 4.5% Tobacco Settlement Fund $137 Million .5%
= $25 Billion
65 Georgia’s General Fund Revenue FY 2018
Student Finance Commission: Scholarships, Dual Enrollment
General funds for Education
preschools through professional learning and training.
reading comprehension skills to be successful. Without the right intervention to support these students, there is a 78% chance they will not catch up with their peers.”
read proficiently by the fourth grade will end up in jail or on welfare.
Georgia approximately $2.1 billion annually.
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$5,529.41 per student
$22,222.00 per inmate
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The above slides demonstrate how a quality education impacts society as a whole, regardless of whether or not you have children.
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Single Female Age: 71 Income: $11,057 Income Sources: S/S No Other Income Single Female Age: 67 Income: $23,706 Income Sources: S/S No Other Income Single Male Age: 66 Income: $13,495 Income Sources: S/S No Other Income Single Female Age: 66 Income: $9,324 Income Sources: S/S No Other Income Single Male Age: 68 Income: $20,806 Income Sources: S/S & Retirement No Other Income Married Couple Age: 63/62 Income: $5,553 Income Sources: Retirement No Other Income Married Couple Age: 66/60 Income: $20,350 Income Sources: S/S & Retirement No Other Income Single Female Age: 76 Income: $20,350 Income Sources: S/S No Other Income Single Male Age: 78 Income: $8,819 Income Sources: S/S No Other Income Single Female Age: 77 Income: $19,158 Income Sources: S/S No Other Income Married Couple Age: 76/73 Income: $21,262 Income Sources: S/S No Other Income Married Couple Age: 78/71 Income: $16,552 Income Sources: S/S No Other Income Single Female Age: 79 Income: $16,190 Income Sources: S/S No Other Income Single Male Age: 73 Income: $17,334 Income Sources: S/S No Other Income Single Male (Mother in home) Age: 67/89 Income: $20,652 Income Sources: S/S (both) No Other Income
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Are the above examples of Senior citizens utilizing the current (2014) school tax exemptions what you consider “meaningful exemptions”?
leading to higher populations of older homeowners relative both to younger homeowners and to older renters.”
breaks do in fact take them. “Our analysis suggests that they do. (In reference to Cobb County School District who give full exemptions) 96% of eligible households get their exemption. However, we acknowledge some uncertainty in this number and would consider 90%-100% to be a reasonable range for this number.”
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73 The projection of the growth of the 65+ age population is at a much higher rate in relation to all other age groups. The age demographics will change dramatically in Pickens County by 2030. All data presented in this presentation supports this. As the population of the 65+ age population grows, so will the percentage of those eligible for exemptions. This reduces the tax paying base. Keep in mind that these age demographic change predictions do NOT consider any ADDITIONAL tax
most likely add to the 65+ age growth projections, thus reducing the tax paying base even more.