The permissive range for an estimated tax levy is ___________ to ____ percent of prior year levy.

• A. 90 to 110
• B. 95 to 105
• C. 100 to 120
• D. 85 to 115

Answer: (B)

A permissive range is used to balance flexibility with budgeting stability by allowing only modest changes from the previous year’s levy. The standard range is 95% to 105% of the prior year’s levy, meaning you can estimate anywhere from a 5% decrease to a 5% increase. This narrow band lets you account for small shifts in service needs, enrollment, or property values while keeping tax bills reasonably predictable for taxpayers. Wider ranges would permit larger swings year to year, undermining stability, and ranges that are too restrictive or skewed (such as no decrease or a much larger increase) would not reflect typical budgeting practice.