Tax rates in districts resulting from consolidation pursuant to court order or created after February 1, 1978, but prior to July 30, 1978.

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(a) For the purpose of this section:

(1) “Consolidated area” shall refer to a contiguous geographical area in which all school districts (except vocational-technical school districts unless specifically included by the court or the consolidation) are being organized into 1 or more reorganized school districts.

(2) “Reorganized school district” shall mean any school district created by consolidation of whole existing school districts or parts of existing school districts or any combination thereof pursuant to court order or created by consolidation of whole existing school districts or parts of existing school districts or any combination thereof which occurs after February 1, 1978, but prior to July 30, 1978, except for consolidation of districts created specifically to administer a system of vocational and/or technical education.

(b) The interim board of education or board of education or other authority mandated by the court or by this title for each reorganized school district may annually set a tax rate for current operating expenses not greater than a maximum rate to be determined by the State Board of Education in accordance with the following mathematical procedure:

(1) Determine the total aggregate dollar amount of local tax funded current operating cost expenditure in the school districts (except vocational-technical school districts unless such districts are included in the consolidation) of the consolidated area in the year prior to consolidation. In determining such total amount the State Board shall take the known total aggregate dollar amount of local tax funded current operating cost expenditure in the fiscal year preceding the year prior to consolidation and shall adjust this amount to take into account historic annual percentage changes in such total dollar amounts;

(2) Calculate the average per pupil local tax funded operating cost expenditure by dividing the dollar amount determined in paragraph (b)(1) of this section by the total number of students resident in the consolidated area who attend public schools of the districts (except vocational-technical school districts unless such districts are included in the consolidation) within the consolidated area on September 30 of the year prior to consolidation;

(3) Multiply the per pupil figure determined in paragraph (b)(2) of this section by the projected number of pupils expected to attend school in the reorganized school district in the first year of consolidation, such projected number to be determined by the State Board of Education by whatever tests or standards it finds appropriate;

(4) Determine the tax rate which, when multiplied by the total assessed value of all taxable real estate in the reorganized school district at the time the maximum is calculated, except taxable real estate which is exempt from county taxation, as determined and fixed for county tax purposes, would yield tax dollars collectible equal to 110 percent of the total dollar amount determined in paragraph (b)(3) of this section.

(c) The maximum rate of tax authorized in accordance with subsection (b) of this section includes the percentage for delinquencies and costs of collection provided for in § 1913 of this title.

(d) The interim board of education or the board of education or other authority mandated by the court or by this title for each reorganized school district may at an appropriate time during each fiscal year set a tax rate for debt service for the next fiscal year that shall be adequate to make the payments for principal and interest on debts evidenced by bonds or bond obligations of the reorganized district and bonds or bond obligations in each of the whole component school districts included in the reorganized district and for that fraction of the bond obligation of each component school district partially included in the reorganized district equal to the fraction of the assessed value (except taxable real estate which is exempt from county taxation, as determined and fixed for county tax purposes) of such partially included district located in the reorganized district.

(e) The interim board of education or board of education or other authority mandated by the court or by this title for each reorganized school district may each fiscal year determine and set tax rates for tuition and for minor capital improvements for the next fiscal year.

(f) Each reorganized school district may annually levy and collect taxes at rates set in accordance with this section upon the assessed value of all taxable real estate in such district, except taxable real estate which is exempt from county taxation, as determined and fixed for county tax purposes. Whenever this section provides for a maximum rate of tax, the levy of any taxes in excess of such maximum rate of tax shall in all respects be subject to this subchapter, notwithstanding this section.


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