field_block:node:page:title
Disparity Reduction Aid (DRA) Certification
field_block:node:page:body
Disparity Reduction Aid (DRA) was designed to prevent tax rates from being disproportionately high for individual unique taxing areas (UTAs) in relation to other similar areas. DRA works by directly reducing the tax rate in a UTA so that the levies in that area are paid in part by DRA rather than coming completely from taxpayers.
Since DRA affects only the final tax rate, it is ignored when setting levies. DRA amounts have remained stable since they were first calculated in 1988, adjusted for changes in class rates.
DRA is certified for UTAs and only those eligible to receive DRA are listed in the files posted below. The Department of Revenue certifies DRA by September 1 each year.
field_block:node:page:field_paragraph
Counties must complete Form PT01, Annexations Affecting DRA, to report annexations within their borders that result in property changing from one unique taxing area (UTA) to another.
You must email a completed Form PT01 to the Department of Revenue by August 1, 2021, if all of the following conditions apply to an annexation:
-
The original unique taxing area of the annexed property is certified to receive DRA
-
The effective date of the annexation is between July 1, 2020, and June 30, 2021
-
The annexed portion of the unique taxing area comprised 5 percent or more of the taxable net tax capacity of the entire unique taxing area before the annexation
Form PT01, Annexations Affecting DRA
When completing Form PT01, please note the following:
-
In some cases, the annexed area may have a different tax rate than the city or town annexing it – that is, the annexed area becomes a new UTA of its own. If that happens, use that area’s new UTA ID in Column 11 of the form. Otherwise, use the same UTA ID as the annexing UTA.
-
The reporting period for annexations ends June 30 for completing Form PT01 and calculating DRA. However, for property tax calculations, the cutoff date remains August 1.
