What is the upper bound of the permissive range for the estimated tax levy, expressed as a percent of the prior year levy?

• A. 105
• B. 110
• C. 100
• D. 115

Answer: (A)

The upper bound of the permissive range controls how much the estimated tax levy may increase versus the prior year while keeping budgeting expectations reasonable. This range typically allows a modest growth only, balancing the need to fund services with the desire to keep taxes predictable for taxpayers. The maximum you can estimate is five percent above the prior year’s levy, which means the upper bound is one hundred five percent of the prior year’s levy. For example, if last year’s levy was one million, the ceiling for the current estimate would be one million five thousand. Options that imply larger jumps would exceed the permissible range, while the baseline case of no change is one hundred percent.