The Arkansas Department of Education (ADE), Fiscal & Administrative Services Division, is submitting the 36% pullback calculations for calendar year 2012 property taxes. The report is attached and is also posted on the ADE Internet at http://arkansased.org/about/reports.html.
The assessment data are submitted by each county clerk in compliance with Ark. Code Ann. § 6-20-2202(g)(1). This report will be used in the state foundation funding calculation for 2011-2012. The millage data are from the annual millage election held during calendar year 2011 for taxes payable in calendar year 2012. The millage rates have been adjusted for rollback provisions. Rollback data are provided by the Assessment Coordination Department.
Beginning in this year, 2011-2012, the requirement to accrue additional property tax revenue or defer collected property tax revenue that exceeds the calculated pullback amount has been removed. Districts have the option to accrue additional revenue at 36%, but will not have the option to defer. Districts choosing not to accrue MUST record property tax revenue in the year collected. Once a district chooses not to accrue, they no longer have the option to accrue in subsequent years. In each subsequent year, the calculated pullback amount will be reduced by 4% per year until it is completely phased out.
The 36% pullback for fiscal year 2011-2012 is calculated in compliance with Ark. Code Ann. § 6-20-401(4)(C)(i). It is calculated as follows: the greater of the product of either (assessment x the tax rate which is not pledged to secure bonded indebtedness x 36%) or (assessment x the uniform rate of tax x 36%).
Districts that were consolidated or annexed and have not voted a unified millage rate are indicated with a “+”sign. For the 36% percent pullback of these districts, the two calculations are added together.