Tax Rate Ceiling Law and Legal Definition

Tax rate ceiling refers to tax rate used by the taxing authority in the preceding year. It is the amount that would produce from all taxable property substantially the same amount of tax revenue as was produced in the previous year. [Green v. Lebanon R-III Sch. Dist., 13 S.W.3d 278 (Mo. 2000)].

The following is an example of a state statute (Missouri) on tax rate ceiling:

§ 137.073 R.S.Mo. Tax rate ceiling is a tax rate revised by the taxing authority to comply with the statutory provisions or when a court has determined the tax rate. This is the maximum tax rate that may be levied, unless a higher tax rate ceiling is approved by voters of the political subdivision.