[Code of Federal Regulations]
[Title 34, Volume 1]
[Revised as of July 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 34CFR222.66]

[Page 525]
 
                           TITLE 34--EDUCATION
 
                  CHAPTER II--OFFICE OF ELEMENTARY AND
              SECONDARY EDUCATION, DEPARTMENT OF EDUCATION
 
PART 222_IMPACT AID PROGRAMS--Table of Contents
 
 Subpart E_Additional Assistance for Heavily Impacted Local Educational 
                Agencies Under Section 8003(f) of the Act
 
Sec. 222.66  How does the Secretary determine whether a fiscally 
independent local educational agency is making a reasonable tax effort?

    (a) To determine whether a fiscally independent LEA, as defined in 
Sec. 222.2(c), is making a reasonable tax effort as required by Sec. 
222.63 or Sec. 222.64, the Secretary compares the LEA's local real 
property tax rates for current expenditure purposes (referred to in this 
part as ``tax rates''), as defined in Sec. 222.2(c), with the tax rates 
of its generally comparable LEAs.
    (b) For purposes of this section, the Secretary uses--
    (1) Actual tax rates if all the real property in the LEA and its 
generally comparable LEAs is assessed at the same percentage of true 
value; or
    (2) Tax rates computed under Sec. Sec. 222.67-222.69.
    (c) The Secretary determines that an LEA described in Sec. 
222.62(a) or (d) is making a reasonable tax effort if--
    (1) The LEA's tax rate is equal to at least 95 percent of the 
average tax rate of its generally comparable LEAs;
    (2) Each of the LEA's tax rates for each classification of real 
property is equal to at least 95 percent of each of the average tax 
rates of its generally comparable LEAs for the same classification of 
property;
    (3) The LEA taxes all of its real property at the maximum rates 
allowed by the State, if those maximum rates apply uniformly to all LEAs 
in the State; or
    (4) The LEA has no taxable real property.
    (d) The Secretary determines that an LEA described in Sec. 
222.62(b) is making a reasonable tax effort if--
    (1) The LEA's tax rate is equal to at least 125 percent of the 
average tax rate of its generally comparable LEAs;
    (2) Each of the LEA's tax rates for each classification of real 
property is equal to at least 125 percent of each of the average tax 
rates of its generally comparable LEAs for the same classification of 
property;
    (3) The LEA taxes all of its real property at the maximum rates 
allowed by the State, if those maximum rates apply uniformly to all LEAs 
in the State; or
    (4) The LEA has no taxable real property.

(Authority: 20 U.S.C. 7703(f))