§ 15103 Bond Limits Property Valuation

• •For bond limits, use the district’s full assessed property value, not the reduced value after exemptions.
• •Business inventory exemptions and homeowner tax exemptions are ignored for this purpose.
• •This rule overrides any other law that might say to use the reduced value.

A school district wants to issue bonds to build a new gym. Some local businesses have inventory tax exemptions, and many homeowners have property tax exemptions, which normally lower the district’s total assessed property value.

Even though those exemptions would normally reduce the district’s taxable property amount, the district must ignore those reductions and use the original assessed value to see if it can issue the bonds.