Chapter 5.1


5.1 - What is Act I and How Does it Relate to Property Taxes?

For each school district, the Act 1 base index is then adjusted by the school district's MV/PI Aid Ratio (we discussed this measure in special education funding--it serves as a measure of local wealth) to calculate their adjusted Act 1 Index. The adjusted index represents the ceiling for property tax increases.  School districts do not have to raise their property taxes to the adjusted Act 1 index; however, they cannot exceed the adjusted index without an approved exception or voter referendum.

Click on the image link below to view our interactive map illustrating, for each school district, their adjusted Act 1 index for 2019-20.