Mill Levy Correction

Understanding the Mill Levy Correction
For more information:
Mill Levy Correction2 - Overview for Districts -Salida

Property owners across Colorado will face an increase in their property taxes in January. This increase comes from the state, and is an unfortunately reality of our Colorado tax system. 

The Salida School District worked diligently in opposition to this shift with hope to decrease the adjustment. We were not successful in our protests. It is important to know that your property taxes will go up in January, yet your district will not realize and revenue increases.

Your property taxes will go up for two reasons–neither of which the District controls.  The first reason is that the assessed value of property has risen exponentially in our community.  In fact, our assessed value has increased as a District $60 million. 

That means more local property taxes will be collected.  The state will decrease equivalent support. The net result to the district is $0.  The state subsidizes our community. If we can raise more they will support less.

This last year, a multi-year argument was settled. We were the last district to concede the fight because  it represents the single largest tax increase in Chaffee County history.  The Board has advocated and fought this legislative move for years.  

The State Legislature determined, and the Supreme Court upheld, that the Colorado Department of Education incorrectly interpreted the “DeBrucing” laws.  As such, District residents must return to the property mill tax multiplier from 1997. 

That means we must realize an additional increase of 10.12 mills on all properties. One mill a year for 10 years will be added to your property tax bill. We fought it. The Legislature pushed it through. The state will then withhold financial support to the District equivalent with the amount of additional local taxes. The net result to the District is $0.  

It is worth noting that the increase in taxes does help the state in general, and a richer state house could come back to the District indirectly, but never equivalent to what is raised.

The District does have control over some things.  The elementary bond was refinanced last Spring, saving taxpayers $233,340.74. The high school bond was refinanced in November saving taxpayers 
$1,170,520.36. The district has also competed and won $8,000,000 in grant dollars over the last three years. 

In addition, the District’s management of finances has allowed us to increase salaries exponentially without requiring a Mill Levy Override to support the change.  We have the most innovative budget solution in the State to ensure local dollars are maximized.  
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