Revenue Neutral Rate & What You Need to Know

What is Revenue Neutral Rate?

Revenue neutral is when a taxing jurisdiction budgets the exact same amount of property tax revenue, in dollars, for the upcoming budget year as they did for the current year.

For example: If a taxing entity uses $1 million of property tax revenue in the current year, being revenue neutral means they plan to only use $1 million in the next year as well. But if a taxing jurisdiction plans to use more property tax dollars in the next budget year compared to the current year, even $1 more, they would exceed revenue neutral and need to hold a public hearing.

The revenue neutral rate is the mill levy rate to generate the exact same amount of property tax dollars as the year before, using the current tax year's total assessed valuation.

Source: (https://www.sedgwickcounty.org/clerk/revenue-neutral-rate-faq/#:~:text=The%20revenue%20neutral%20rate%20is,tax%20year's%20total%20assessed%20valuation., August 3, 2023)

Please see the Notice of Revenue Neutral Rate Intent for USD 481.