What is Equalized Mills and the Equalized Mills Multiplier?
What is equalized mills and the equalized mills multiplier? The final factor in the SEF formula is the Equalized Millage Multiplier, which is intended to reflect the tax effort in each school district. The factor uses the Equalized Mills for each school district averaged over three years. Equalized Mills are determined by dividing a school district’s total taxes collected by its total Market Value. Generally, high Equalized Mills represent a higher tax burden than low Equalized Mills.
In the SEF formula, the Equalized Mills for each school district are averaged over 3 years. Then, the school districts with the highest 3-year average Equalized Mills (those school districts above the 70th percentile) get a multiplier of 1.0. School districts with a 3-year average Equalized Mills that is below the 70th percentile (i.e. those school districts with a lower tax effort) have a multiplier that is less than 1.0 (and dependent on how close to the 70th percentile it is). This multiplier is known as the Equalized Mills Multiplier.
Click on the map below to view the Equalized Mills Multiplier used in the SEF formula, the most recent 3-year average Equalized Mills, and the change in Equalized Mills from 2011-12 to 2016-17. Differing from all of our previous maps, this map allows you filter peer school districts by value ranges for 3-year average Equalized Mills as well as Median Household Income.