May 20, 2022
Written by: Curtis L. Coonrod, CPA, and Benjamin W. Roeger, CPA [Written: 10/19/21, Revised: 5/20/22] Property tax draws for most cities, towns, townships, and counties are reduced by rate cap credits. Rate cap credits are usually allocated in proportion to the size of each fund that has a property tax levy, except for debt service funds. However, the city or other local unit can change that allocation. For example, suppose the Assistance Fund has $10,000 of rate cap credits and needs more money. The local government can reduce all or some of the Assistance Fund rate cap credits – up to the full $10,000 and increase the rate cap credits by a like amount in other funds. The result? Up […]
