§ 6363 Port District Initial Debt

This law lets a new port district borrow money to run the port, and then set a tax rate that must be high enough to cover the port’s yearly costs and pay back the borrowed money.

Key Takeaways

•A new port district can borrow money right after it’s created.
•The first tax rate must cover both running costs and the loan payments.
•The tax rate is calculated by adding operating costs and debt payments, then dividing by the total taxable property value.

Example

A town creates a new port district on March 1. It borrows $500,000 to buy equipment and needs $200,000 a year to run the port.

The district must set its first property tax rate so that the money collected will pay the $200,000 operating cost plus enough to start paying back the $500,000 loan before July 1 of the next year.

How to Calculate

TaxRate = (OperatingCost + DebtPayment) ÷ TaxableValue

Figure out how much money the port needs each year to run (OperatingCost).
Decide how much of the borrowed money must be paid back during the first year (DebtPayment).
Add those two numbers together to get the total amount the tax must raise.
Divide that total by the total value of all taxable property in the district (TaxableValue) to get the tax rate.

The port needs $200,000 to operate and must pay $100,000 of the loan in the first year. The total taxable property in the district is $10,000,000.

Result: TaxRate = ($200,000 + $100,000) ÷ $10,000,000 = $300,000 ÷ $10,000,000 = 0.03, or 3% of property value.

This law lets a new port district borrow money to run the port, and then set a tax rate that must be high enough to cover the port’s yearly costs and pay back the borrowed money.

Key Takeaways

•A new port district can borrow money right after it’s created.
•The first tax rate must cover both running costs and the loan payments.
•The tax rate is calculated by adding operating costs and debt payments, then dividing by the total taxable property value.

Example

A town creates a new port district on March 1. It borrows $500,000 to buy equipment and needs $200,000 a year to run the port.

The district must set its first property tax rate so that the money collected will pay the $200,000 operating cost plus enough to start paying back the $500,000 loan before July 1 of the next year.

How to Calculate

TaxRate = (OperatingCost + DebtPayment) ÷ TaxableValue

Figure out how much money the port needs each year to run (OperatingCost).
Decide how much of the borrowed money must be paid back during the first year (DebtPayment).
Add those two numbers together to get the total amount the tax must raise.
Divide that total by the total value of all taxable property in the district (TaxableValue) to get the tax rate.

The port needs $200,000 to operate and must pay $100,000 of the loan in the first year. The total taxable property in the district is $10,000,000.

Result: TaxRate = ($200,000 + $100,000) ÷ $10,000,000 = $300,000 ÷ $10,000,000 = 0.03, or 3% of property value.

Key Takeaways

Example

How to Calculate

Key Terms

References

§ 6363 Port District Initial Debt

Key Takeaways

Example

How to Calculate

Key Terms

References

Key Takeaways

Example

How to Calculate

Key Terms

Related Statutes

References

Key Takeaways

Example

How to Calculate

Key Terms

Related Statutes

References