In the collection rate formula, the denominator is the total current tax levy. What is the denominator?

• A. Total Current Tax Levy
• B. Total Current Year Taxes Due
• C. Total Prior Year Levy
• D. Total Assessed Value

Answer: (A)

In the collection rate, you’re comparing what is actually collected to what was charged for the year. The denominator is the total current tax levy—the full amount the taxing authority levied for the current year. This is the figure that represents the amount that could be collected from taxpayers that year, forming the baseline for the collection rate.

Why this fits: the levy is the levy amount set for the year, not what is billed to or paid by taxpayers. The total current year taxes due reflects what taxpayers owe, which can differ from the levy due to exemptions, abatements, or delinquencies. The total prior year levy relates to a previous year, not the current one. The total assessed value is used to calculate the levy, not the levy amount itself.