What is used to establish the estimated tax levy range for a municipality reverting to a calendar fiscal year?

Establishing the estimated tax levy range for a municipality that is reverting to a calendar fiscal year is a process that requires careful consideration of previous fiscal conditions. The correct approach involves calculating half of the current state fiscal year (SFY) tax levy and then applying a factor of 0.95 to establish a lower boundary and 1.05 to create an upper boundary.

This method accounts for the fact that tax levies can fluctuate due to various factors, such as changes in property values, economic conditions, and budgeting needs. By using this specific calculation, the municipality creates a realistic and legally sound framework for determining the possible range of revenue it can expect from property taxes in the first year of the new calendar fiscal year format. This method helps ensure that revenue projections remain within reasonable limits, providing both the municipality and its taxpayers with stability.

Other options, while they might seem reasonable at first glance, do not accurately reflect the necessary calculations or legal requirements for establishing a tax levy range in this context. For instance, a flat percentage increase or an average tax rate over several years does not take into account the precise nuances of actual past levies within the framework of a changing fiscal calendar. Similarly, using the total number of taxable properties would not reflect