What is the tax cap and how does it affect our budget?
The tax cap, established in 1991, limits the amount that some governments may increase local property taxes without voter approval. The amount that the District receives in taxes from residents and local businesses is limited to the annual cost of living, as measured by the Consumer Price Index (CPI) plus new growth (new construction), or five percent, whichever is lower. The result is that School District’s property tax revenue is limited or capped to the CPI and new growth percentage.
