Feb 4 2013

School Tax Calculations

How did the Piedmont Unified School District Board determine the Measure A first year amount of $2,406 per parcel? 

First,  $9.5 million, stipulated by School Board members as the necessary funds, was the approximate amount of revenue generated by the current Measure B 2012-13 parcel tax and adding an additional 5% increase for 2013-14, which the School Board planned to levy for 2013-14.  (December 11, 2012  PUSD minutes)

Second, the School Board divided the number of parcels (3,920) into approximately $9.5 million to determine the $2,406 tax per parcel tax proposed in Measure A.  Below are the number of Piedmont parcels in each category as defined by the School District under the current Measure B tax, which is based on parcel size.

3,764 – Residential

 11  – Commercial

 39 – Multi-family

  11 – Multiple parcel

  95 – undeveloped

    Total: 3,920

Under the proposed Measure A flat tax, approximately, 78 % of  residential property owners will find their tax increased, while approximately 22 % will find their taxes reduced compared to current rates.

Total number of residential parcels  = 3,764

  993 – Parcels under 4,999 sq. ft. tax will increase

1,953 – Parcels between 5,000 sq. ft. and 9,999 sq. ft. tax will increase

   818 – Parcels 10,000 sq. ft. or over tax will decrease

 2,946 – Total residential parcels taxed more under Measure A 

818 – Total residential parcels taxed less under Measure A 

 50 – Commercial/multi-family parcels taxed less under A

95 – Undeveloped parcels taxed more under Measure A 

Multi-family and commercial parcels (50) will be assessed significantly lower parcel taxes, since the owners will pay one flat tax of $2,406.  (For example, owners of the several nine-unit rental apartment buildings in Piedmont will pay one flat tax instead of a PUSD tax on each unit.)  Owners of undeveloped parcels (95) will experience a doubling of their tax from $1009 to the flat rate of $2,406 the first year with the potential 2% annual increase during the eight year period.

Below are the per parcel projected 8-year Measure A payments.  These figures include a 2% increase per year for each parcel.  By the end of the tax 8-year term the total for each parcel would amount to $20, 651.

2013                       $2,406

2014    plus 2%      $2,454

2015    plus 2%      $2,503

2016   plus 2%       $2,553

2017   plus 2%       $2,604

2018   plus 2%      $2,656

2019   plus 2%         $2,710

2020  plus 2%          $2,764

            Potential Measure A total 8 year assessment per parcel

= $20,651

Additional tax rate information is available on the Patch.      

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