Umbaugh It's all about experience

(888) 516 9594

State Certifies Levy Growth Factor

By Paige E. Sansone, CPA, Partner, June 30, 2017

Local government is restricted to the amount of property tax that may be levied in a given year.  This is called the maximum levy limitation.  Maximum levies were set back in the 1970s based on the local governments' spending at that time.  Ever since then, maximum levies have been growing by an annual growth factor. 

All taxing units receive the same levy growth regardless of the growth in population or property values. The annual growth factor is based on a 6-year average of non-farm personal income.  Since the factor is tied to income, it declines during recessions and improves as the economy improves.  Fortunately, our economy is improving so it is no surprise that the levy growth factor for 2018 is higher than 2017.  

The certified maximum levy growth factor for 2018 is 4%.

Information in this article was believed current as of the date of publication. As you know, changes occur frequently. The information presented is of a general educational nature. Before applying to your specific circumstances, please contact us at vision@umbaugh.com.


Categories


Newsletter Sign-Up

To receive our Vision Newsletters please provide us with your email address: