Setting the record straight: The Truth about Capital Outlay

Dr. Craig Butz, Principal of Pepin Academies, responds to inaccurate information published in the Tampa Bay Times

 

Mr. Romano,

I read your article on Charter Schools and the issue of Capital Outlay Funding in Saturday’s paper. While much of what you wrote has some basis in fact and history, there were a couple of things that I found to be misleading. First, not all charter schools are managed or operated by Charter Management Companies. In fact, the slight majority of Public Charter Schools in Hillsborough County and the State of Florida are independent schools, governed by independent boards, and have nothing to do with for-profit companies of any kind.

Secondly, and most egregious, was your statement that “from 2009 to 2014, charters got $312 million in capital funds and traditional schools got a pat on the head.” Please see the full description of what that “pat on the head” totaled in taxes that parents of both traditional and charter public school parents pay each year.

The ad valorem tax or “property tax” is an annual tax levied by counties, cities, school districts, and some special districts. The tax is based on the taxable value of property as of January 1.  The property appraiser annually determines the “just value” of property within the taxing authority and then applies relevant exclusions, assessment limitations, and exemptions to determine the property’s “taxable value.”3 The millage rate (tax rate) is applied to the taxable value to determine the amount of tax due. Tax bills are mailed in November of each year based on the previous January 1 valuation and payment is due by March 31.

Screen Shot 2016-02-19 at 1.26.43 PMThe Florida Constitution prohibits the state from levying ad valorem taxes and limits the Legislature’s authority to provide for property valuations at less than just value, unless expressly authorized.   The Florida Constitution requires ad valorem taxation to be at a uniform rate within each taxing unit.  Local governments levied approximately $28.3 billion in in ad valorem taxes in Fiscal Year 2015-16. Of the $28.3 billion, school districts levied approximately $12 billion in property taxes.

Counties, Municipalities, and Schools

The Florida Constitution limits counties, municipalities, and school districts to levies of 10 mills (or one percent).  By referendum, local voters may authorize counties, municipalities, and school districts to levy additional mills above the 10-mill limitation to repay bonds to finance capital projects and for other purposes for a period of no longer than two years.  Counties providing municipal services may also levy up to an additional 10 mills above the 10-mill county limitation within those areas receiving municipal-type services.

The maximum millage rate that most non-school taxing authorities can levy by simple majority vote is a rolled-back rate based on the amount of taxes which would have been levied in the prior year if the maximum millage rate had been applied in that year, adjusted by the change in Florida per capita personal income.  Local governments are allowed to override the prescribed rate reductions by extraordinary votes of their governing boards or by referenda of the electorate. A higher rate may be adopted only under the following conditions:

  • A rate of not more than 110 percent of the rolled-back rate based on the previous year’s maximum millage rate, adjusted for change in per capita Florida personal income, may be adopted if approved by a two-thirds vote of the membership of the governing body of the taxing authority; or
  • A rate in excess of 110 percent may be adopted if approved by a unanimous vote of the membership of the governing body of the taxing authority or by a three-fourths vote of the membership of the governing body if the governing body has nine or more members, or if the rate is approved by a referendum.

 

Hillsborough Millage

  • The millage rates for 2015 are as follows:

o   Plant City – 18.7180

o   Tampa – 20.7932

o   Temple Terrace – 21.4573

o   Unincorporated Hillsborough – 19.461

  • Of that School – local is 2.2480 mills and the School – state is 4.9990 mills.  That is the amount of tax due per $1000 of taxable value.
  • Last year the Hillsborough County School Board levied $585M from ad valorem taxes for operating costs.

 

 

 

Dr. Craig Butz

Principal, Pepin Academies

President, Charter School Leaders-Florida

 

cbutz@theacademies.us

 

 

 

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