State Board of Equalization Responsibilities for School District Residential Assessment Rate
2025 Residential School Assessment Rate - 7.05%
Starting on January 15th, 2025, and every January 15 th thereafter, the Legislative Council Staff (LCS) shall provide the State Board of Equalization (SBOE) with the information to calculate the balancing percentage and, after 2025, the correction percentage for the current property tax year. The calculated percentages are based on the estimated qualified local share of property tax revenue that LCS forecasts. Since this is an estimate, LCS will also provide a counterfactual percentage for the prior property tax year in which the qualified local share of property tax revenue exceeded the school district property tax limit, if necessary.
Where the school residential real property assessment rate percentages are defined as:
- Balancing percentage is the residential real property assessment rate for school districts, necessary for school district qualified local share property tax revenue to equal the school district property tax limit.
- Correction percentage is the difference between the current assessment rate and the counterfactual percentage.
- Counterfactual percentage is the valuation for assessment of all residential real property for the preceding property tax year that would have resulted in school district qualified local share property tax revenue equaling the school district property tax limit.
- The counterfactual percentage is essentially a “true-up” between what was projected and actual calculations.
Within 21 days of receiving the LCS report, the SBOE shall meet and submit a report to the General Assembly that calculates the necessary balancing percentage and correction percentage that will prevent the qualified local share of property tax revenue from exceeding the limit. When necessary, the counterfactual percentage will be used to correct.
As soon as practicable, the SBOE will direct the Division of Property Taxation to publish the residential real property school assessment rate on the DOLA website.
The Residential Real Property Assessment rate in law for schools is 7.05% (assuming a growth rate of <5%).
The balancing percentage is 7.05% - correction percentage, if a correction is necessary.
If the estimate for the previous year was off (starting in 2026), there will be a counterfactual percentage applied as well.
Final percentage = 7.05% - correction percentage +/- counterfactual percentage (not to exceed 7.05%).