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Notes

34 C.F.R. §§ 222.68–222.72

5 sections in range

§222.68. How does the Secretary determine whether a fiscally independent local educational agency meets the applicable tax rate requirement?

34 C.F.R. § 222.68

(a)
To determine whether a fiscally independent LEA, as defined in § 222.2(c), meets the applicable tax rate requirement in §§ 222.63(b)(3), 222.63(c)(2), and 222.64(a)(3), the Secretary compares the LEA's local real property tax rate for current expenditure purposes, as defined in § 222.2(c) (referred to in this part as “tax rate” or “tax rates”), with the tax rates of its generally comparable LEAs.
(b)
For purposes of this section, the Secretary uses—
(1)
The actual tax rate if all the real property in the LEA and its generally comparable LEAs is assessed at the same percentage of true value; or
(2)
Tax rates computed under §§ 222.69-222.71.
(c)
The Secretary determines that an LEA described in §§ 222.63(b), 222.63(c), or 222.64(a) meets the applicable tax rate requirement if—
(1)
The LEA's tax rate is equal to at least 95 percent (or 125 percent under 222.63(c)) of the average tax rate of its generally comparable LEAs;
(2)
Each of the LEA's tax rates for each classification of real property is equal to at least 95 percent (or 125 percent under 222.63(c)) of each of the average tax rates of its generally comparable LEAs for the same classification of property;
(3)
The LEA taxes all of its real property at the maximum rates allowed by the State, if those maximum rates apply uniformly to all LEAs in the State and the State does not permit any rates higher than the maximum; or
(4)
The LEA has no taxable real property.
Notes, amendments, and revision history

Source

Source: 80 FR 33166, June 11, 2015, unless otherwise noted.

Authority

Authority: 20 U.S.C. 7701-7714; Pub. L. 111-256, 124 Stat. 2643; unless otherwise noted.

Source

Source: 60 FR 50778, Sept. 29, 1995, unless otherwise noted.

§222.69. What tax rates does the Secretary use if real property is assessed at different percentages of true value?

34 C.F.R. § 222.69

If the real property of an LEA and its generally comparable LEAs consists of one classification of property but the property is assessed at different percentages of true value in the different LEAs, the Secretary determines whether the LEA meets the applicable tax rate requirement under § 222.68(c)(1) by using tax rates computed by—
(a)
Multiplying the LEA's actual tax rate for real property by the percentage of true value assigned to that property for tax purposes; and
(b)
Performing the computation in paragraph (a) of this section for each of its generally comparable LEAs and determining the average of those computed tax rates.
Notes, amendments, and revision history

Source

Source: 80 FR 33166, June 11, 2015, unless otherwise noted.

Authority

Authority: 20 U.S.C. 7701-7714; Pub. L. 111-256, 124 Stat. 2643; unless otherwise noted.

Source

Source: 60 FR 50778, Sept. 29, 1995, unless otherwise noted.

§222.70. What tax rates does the Secretary use if two or more different classifications of real property are taxed at different rates?

34 C.F.R. § 222.70

If the real property of an LEA and its generally comparable LEAs consists of two or more classifications of real property taxed at different rates, the Secretary determines whether the LEA meets the applicable tax rate requirement under § 222.68(c)(1) or (2) by using one of the following:
(a)
Actual tax rates for each of the classifications of real property.
(b)
Tax rates computed in accordance with § 222.69 for each of the classifications of real property.
(c)
Tax rates computed by—
(1)
Determining the total true value of all real property in the LEA by dividing the assessed value of each classification of real property in the LEA by the percentage of true value assigned to that property for tax purposes and aggregating the results;
(2)
Determining the LEA's total revenues derived from local real property taxes for current expenditures (as defined in section 8013);
(3)
Dividing the amount determined in paragraph (c)(2) of this section by the amount determined in paragraph (c)(1) of this section; and
(4)
Performing the computations in paragraphs (c)(1), (2), and (3) of this section for each of the generally comparable LEAs and then determining the average of their computed tax rates.
Notes, amendments, and revision history

Source

Source: 80 FR 33166, June 11, 2015, unless otherwise noted.

Authority

Authority: 20 U.S.C. 7701-7714; Pub. L. 111-256, 124 Stat. 2643; unless otherwise noted.

Source

Source: 60 FR 50778, Sept. 29, 1995, unless otherwise noted.

§222.71. What tax rates may the Secretary use if substantial local revenues are derived from local tax sources other than real property taxes?

34 C.F.R. § 222.71

(a)
In a State in which a substantial portion of revenues for current expenditures for educational purposes is derived from local tax sources other than real property taxes, the State educational agency (SEA) may request that the Secretary take those revenues into account in determining whether an LEA in that State meets the applicable tax rate requirement under § 222.68.
(b)
If, based upon the request of an SEA, the Secretary determines that it is appropriate to take the revenues described in paragraph (a) of this section into account in determining whether an LEA in that State meets the applicable tax rate requirement under § 222.68, the Secretary uses tax rates computed by—
(1)
Dividing the assessed value of each classification of real property in the LEA by the percentage of true value assigned to that property for tax purposes and aggregating the results;
(2)
Determining the LEA's total revenues derived from local tax sources for current expenditures (as defined in section 8013);
(3)
Dividing the amount determined in paragraph (b)(2) of this section by the amount determined in paragraph (b)(1) of this section; and
(4)
Performing the computations in paragraphs (b)(1), (2), and (3) of this section for each of the generally comparable LEAs and then determining the average of those computed tax rates.
Notes, amendments, and revision history

Source

Source: 80 FR 33166, June 11, 2015, unless otherwise noted.

Authority

Authority: 20 U.S.C. 7701-7714; Pub. L. 111-256, 124 Stat. 2643; unless otherwise noted.

Source

Source: 60 FR 50778, Sept. 29, 1995, unless otherwise noted.

§222.72. How does the Secretary determine whether a fiscally dependent local educational agency meets the applicable tax rate requirement?

34 C.F.R. § 222.72

(a)
If an LEA is fiscally dependent, as defined in § 222.2(c), the Secretary compares the LEA's imputed local tax rate, calculated under paragraph (b) of this section, with the average tax rate of its generally comparable LEAs, calculated under paragraph (c) of this section, to determine whether the LEA meets the applicable tax rate requirement.
(b)
The Secretary imputes a local tax rate for a fiscally dependent LEA by—
(1)
Dividing the assessed value of each classification of real property within the boundaries of the general government by the percentage of true value assigned to that property for tax purposes and aggregating the results;
(2)
Determining the amount of locally derived revenues made available by the general government for the LEA's current expenditures (as defined in section 8013); and
(3)
Dividing the amount determined in paragraph (b)(2) of this section by the amount determined in paragraph (b)(1) of this section.
(c)
The Secretary performs the computations in paragraph (b) of this section for each of the fiscally dependent generally comparable LEAs and the computations in §§ 222.68 through 222.71, whichever is applicable, for each of the fiscally independent generally comparable LEAs and determines the average of all those tax rates.
(d)
The Secretary determines that a fiscally dependent LEA described in § 222.63(b) or § 222.64(a) meets the applicable tax rate requirement if its imputed local tax rate is equal to at least 95 percent of the average tax rate of its generally comparable LEAs.
(e)
The Secretary determines that a fiscally dependent LEA described in § 222.63(c) meets the applicable tax rate requirement if its imputed local tax rate is equal to at least 125 percent of the average tax rate of its generally comparable LEAs.
Notes, amendments, and revision history

Source

Source: 80 FR 33166, June 11, 2015, unless otherwise noted.

Authority

Authority: 20 U.S.C. 7701-7714; Pub. L. 111-256, 124 Stat. 2643; unless otherwise noted.

Source

Source: 60 FR 50778, Sept. 29, 1995, unless otherwise noted.