When most people hear that the tax rate being assessed by the School District is increasing, they typically assume that it means the School District is getting increased funding. This is not always the case - especially in Kyrene where for the past few years the District has continued to receive less funding per pupil yet, due to declining property values and changes in State laws, the District has been forced to increase its tax rate.
There are two categories of taxes, Primary and Secondary. Here is a simple explanation of how the rates are calculated.
Primary Tax Rate
Secondary Tax Rate
|The District's Budget (Includes Overrides)||Overrides|
|-||Net of Cash on Hand/Encumbrances*||+||Bonds|
|-||Anticipated State Aid Payment||/||Secondary Assessed Valuation (Full Property Value)|
|-||Overrides (taxed on Secondary)||Secondary Tax Rate|
|/||Primary Assessed Valuation (Limited Property Value)|
|Primary Tax Rate|
*Districts are authorized to carry funds forward into the subsequent year, so they will typically finish the year with a cash balance. Encumbrances are bills from the prior year that have not yet cleared. The bills must clear by the end of August in order to be paid for with prior year funds, this is known as the encumbrance period.
Click here to view a detailed calculation of Kyrene's Primary Property Tax Rate.