[Code of Federal Regulations]
[Title 34, Volume 1]
[Revised as of January 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 34CFR222.70]

[Page 534]
 
                           TITLE 34--EDUCATION
 
              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. 222.70  How does the Secretary determine whether a fiscally dependent local educational agency is making a reasonable tax effort?

    (a) If an LEA is fiscally dependent, as defined in Sec. 222.2(c), 
the Secretary compares the LEA's imputed local tax rate, calculated 
under paragraph (b) of this section, with the average tax rate of its 
generally comparable LEAs, calculated under paragraph (c) of this 
section, to determine whether the LEA is making a reasonable tax effort.
    (b) The Secretary imputes a local tax rate for a fiscally dependent 
LEA by--
    (1) Dividing the assessed value of each classification of real 
property within the boundaries of the general government by the 
percentage of true value assigned to that property for tax purposes and 
aggregating the results;
    (2) Determining the amount of locally derived revenues made 
available by the general government for the LEA's current expenditures 
(as defined in section 8013); and
    (3) Dividing the amount determined in paragraph (b)(2) of this 
section by the amount determined in paragraph (b)(1) of this section.
    (c) The Secretary performs the computations in paragraph (b) of this 
section for each of the fiscally dependent generally comparable LEAs and 
the computations in Sec. Sec. 222.67-222.69, whichever is applicable, 
for each of the fiscally independent generally comparable LEAs and 
determines the average of all those tax rates.
    (d) The Secretary determines that a fiscally dependent LEA described 
in Sec. 222.62 (a) or (d) is making a reasonable tax effort if its 
imputed local tax rate is equal to at least 95 percent of the average 
tax rate of its generally comparable LEAs.
    (e) The Secretary determines that a fiscally dependent LEA described 
in Sec. 222.62(b) is making a reasonable tax effort if its imputed 
local tax rate is equal to at least 125 percent of the average tax rate 
of its generally comparable LEAs.

(Approved by the Office of Management and Budget under control number 
1810-0036)

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