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BreakEven

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BreakEven
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11/30/2011
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Breakeven, Rounding, and Sensitivity Calculations PLEASE see notation at bottom of calculator Rounding Down Difference:

Break - Even Calc Diff From Calc Diff From Calc Diff From Calc Diff From

Tax Rate Lo Hi Data ID Calc Mills Rate Tax Relief Homesteads Net Rounding Error

Proposed Mills 26.079 a Some counties may have software programs that are unable to adjust

Current Mills 25.270 b assessment values with cents; but rather only in whole dollars

Change in Mills 0.809 c

Change in Rate 3.201% d c/b Assuming that the homestead exclusion amount is rounded down (so

as not to use district money to fund tax relief), the amount of undistributed

Number of Total Residences 8,306 e gaming proceeds due to rounding down corrections can be calculated

Number of Homesteads 6,638 f as follows:

Number of Farmsteads 0 g

Total Approved Homesteads and Farmsteads No 6,638 h

Total Approved Homesteads and Farmsteads % of Tot Residences 79.918% i h/e



Median Assessment of Approved Homestead $202,550 j



Share of Distributution from Slot Machine Tax Revenue $1,467,488 k



Homestead Tax Relief $221.07 l

Homestead Exclusion Amount $8,476.94 m l/a X 1000 0.026079 $221.07 6,638

Rounded down $8,476.00 n 0.026079 $221.05 6,638

Rounding Difference (Total, If Rounded Down) 0.000000 $0.02 6,638 $132.76



Break-Even Homestead:

Method 1: (By Repeating & Refining Base Estimate)

Base estimate $200,000 o

Major Increment $73,200 p

Minor Increment 54 67 $63 q

Calculated Value of a Break-Even Assessment $273,263 r o+p+q



Proof:

Tax for a Break-Even Assessment Algebra: Break Even Assessment, X =

Next Year Tax $7,126.43 s r x a /1000 X * (r x a /1000) - (r x b /1000) = $221.07

Current Year Tax $6,905.36 t r x b /1000 X * (r x a ) - (r x b) = $221.07 x 1,000

Increase in Tax $221.07 u s-t X * ( a ) - ( b) = $221,070

Less Tax Relief (above) -$221.07 v l X * ( 26.079 ) - ( 25.270) = $221,070

Net Difference $0.00 w u+v X * ( .809) = $221,070

X = $221,070 / 0.809

Method 2: By Calculation X = $273,263

Calculated Break Even Assessment:

($ Tax Relief Per Homestead / Mills Increase) x 1,000 $273,263 x (l/c) x 1000



Break-Even Homestead Over (Under) Median $ $70,713 y x-j

Break-Even Homestead Over (Under) Median % 34.91% z y/j



Sensitivity Analysis:

What would happen to the homestead exclusion amount if all residences became approved homesteads?Rounded

Partic Tax Relief Exclusion BreakEven Over (Under) Over (Under)

% Per Homestead Amount Excl Amt Median Median $ Median %

Current Exclusion Amount 79.9% $221.07 $8,476.00 $273,263 $202,550 $70,713 34.91%

As Adjusted for 100% Participation 100.0% $176.68 $6,774.00 $218,393 $202,550 $15,843 7.82%

Change: 20.1% -$44.39 -$1,702.00 -$54,870.29 $202,550 -$54,870 -27.09%


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