Tax Rate Recapitulations

Calculating and setting a community's tax rate is a component of a larger process we call the tax recapitulation process.  At the end of this yearlong activity, a community completes the tax recapitulation sheet.  A municipality's entire budget plan for the fiscal year is laid out on this sheet.  It lists all appropriations made by the legislative body since the previous year's tax rate was set.  Anticipated and actual sources of revenue other than property taxes, such as Cherry Sheet aid and estimated local receipts, are also identified.  The difference between the appropriations and revenue from these sources must be raised through property taxes.  This difference is called the tax levy.  The tax levy must be within the limits set by Proposition 2 1/2.