Local Wealth Factor [Education] Law and Legal Definition

Local wealth factor is the average of the property tax wealth factor and the sales tax wealth factor. It is the fiscal capacity relative to sales and property taxes and proration factor for each district. In educational institutions, the property tax wealth factor is determined by dividing the local school system's net equalized adjusted property tax digest per weighted full-time equivalent student by the state-wide net equalized adjusted property tax digest per weighted full-time equivalent student. The sales tax wealth factor is determined by dividing the local school system's one percent local sales tax wealth per weighted full-time equivalent student by the state-wide one percent sales tax wealth per weighted full-time equivalent student.