222.66—How does the Secretary determine whether a fiscally independent local educational agency is making a reasonable tax effort?
(a)
To determine whether a fiscally independent LEA, as defined in § 222.2(c), is making a reasonable tax effort as required by § 222.63 or § 222.64, the Secretary compares the LEA's local real property tax rates for current expenditure purposes (referred to in this part as “tax rates”), as defined in § 222.2(c), with the tax rates of its generally comparable LEAs.
(1)
Actual tax rates if all the real property in the LEA and its generally comparable LEAs is assessed at the same percentage of true value; or
(c)
The Secretary determines that an LEA described in § 222.62(a) or (d) is making a reasonable tax effort if—
(1)
The LEA's tax rate is equal to at least 95 percent of the average tax rate of its generally comparable LEAs;
(2)
Each of the LEA's tax rates for each classification of real property is equal to at least 95 percent of each of the average tax rates of its generally comparable LEAs for the same classification of property;
(3)
The LEA taxes all of its real property at the maximum rates allowed by the State, if those maximum rates apply uniformly to all LEAs in the State; or
(d)
The Secretary determines that an LEA described in § 222.62(b) is making a reasonable tax effort if—
(1)
The LEA's tax rate is equal to at least 125 percent of the average tax rate of its generally comparable LEAs;
(2)
Each of the LEA's tax rates for each classification of real property is equal to at least 125 percent of each of the average tax rates of its generally comparable LEAs for the same classification of property;
(3)
The LEA taxes all of its real property at the maximum rates allowed by the State, if those maximum rates apply uniformly to all LEAs in the State; or